Posted on September 15, 2025
Korea and the us start talks to adjust shipbuilding rules and explore joint construction models
As Korea and the United States remain divided over a tariff and the creation of a $350 billion (about 488 trillion won) investment fund, the first working-level meeting on the MASGA (Make America Shipbuilding Great Again) project will be held on the 17th. MASGA is a cooperation project in which Korean shipbuilders build ships in the United States.
On the 15th, according to the defense industry and military authorities, Director-level working staff at the Defense Acquisition Program Administration (DAPA) will hold their first meeting with the U.S. Department of the Navy in Washington, D.C., on the 16th Eastern time. Earlier, the Korean and U.S. authorities reached a consensus that it is necessary to amend laws related to protecting their domestic shipbuilding industries, such as the Byrnes-Tollefson Act, to ease regulations. The two countries are effectively beginning work to relax regulations cited as obstacles. DAPA Administrator Seok Jong-gun will also accompany the delegation to meet senior officials at the U.S. Department of the Navy.
The DAPA–U.S. Department of the Navy talks are expected to take the form of the Korean side proposing multiple construction methods while Korean and U.S. working-level officials review constraints under current law. The U.S. government said last month it would review ways to avoid regulations under the Byrnes-Tollefson Act and others.
DAPA Vice Administrator Kang Hwan-seok visited the U.S. Department of the Navy on the 6th and proposed that if a Korean shipbuilder produces and supplies “block modules (parts of a ship)” in Korea, the U.S. side would carry out final assembly at local shipyards. Other ideas mentioned included assembling only the hull in Korea and installing equipment in the United States.
Maintenance, repair, and overhaul (MRO) projects for U.S. Navy vessels also appear likely to be discussed. Korea’s shipbuilding industry successfully carried out MRO on two U.S. Navy vessels, and Hanwha Ocean and HD Hyundai Heavy Industries are each conducting an MRO project on one vessel. Until now, these have been logistics support or supply ships, and attention is on whether this will expand to combat ships’ MRO. Under the Byrnes-Tollefson Act, U.S. warships must be built and repaired within the United States.
Hanwha Ocean plant in Geoje, Gyeongnam. /Courtesy of News1
The shipbuilding industry wants Korea-U.S. cooperation to expand into combat ships and submarines. An industry official said, “Submarine MRO is not included in the MASGA project. Expanding to submarines, combat ships, and destroyers would increase Korea’s gains.”
The United States is reportedly struggling not only in shipbuilding but also in the submarine sector. As China’s submarine force rises rapidly, the United States is facing difficulties in building new submarines and in MRO. The Wall Street Journal (WSJ) on the 8th cited a U.S. congressional report to mention delays in maintenance of U.S. Navy submarines. WSJ reported, “Sixteen U.S. attack submarines are in shipyards or out of service, leaving only 67% of the fleet able to operate.”
