As South Korea and the United States advance the ‘MASGA’ (Make American Shipbuilding Great Again) project, the Ministry of Trade, Industry and Energy (MOTIE) has requested support from the U.S. state of Pennsylvania, home to the Hanwha Philly Shipyard, including a review of tariff exemptions for shipbuilding materials and equipment such as steel and parts.

MOTIE announced that on the morning of March 18, at a meeting in Jung-gu, Seoul, Park Dong-il, Deputy Minister for Industrial Policy, met with Rick Siger, Secretary of the Pennsylvania Department of Community and Economic Development, to discuss ways to enhance bilateral industrial cooperation and development, including shipbuilding collaboration between the two countries.

The meeting was held to advance cooperation in the shipbuilding sector, including South Korea’s investment in the U.S. shipbuilding industry. Pennsylvania is the location of Philly Shipyard, which Hanwha Ocean acquired in 2024, and currently builds training ships and medium-sized tankers. Hanwha Ocean plans to invest in site expansion and the enhancement of automated facilities to improve its production capacity from the current 1.5 vessels per year to more than 10 vessels per year.

During the meeting, Deputy Minister Park explained that South Korean shipbuilding companies are reviewing various initiatives to advance the MASGA project, such as expanding U.S. shipbuilding production capacity, workforce development, and strengthening the supply chain.

He then stressed the need for effective support at the Pennsylvania state level for Hanwha Philly Shipyard to play a leading role, specifically outlining requests for: shortening administrative procedures such as permits and licenses for the Philly Shipyard expansion project, preemptive establishment of infrastructure for transportation and power demand, designation as a Philadelphia Maritime Prosperity Zone (MPZ), and support for labor costs.

At the same time, he also requested a review of measures such as tariff exemptions for shipbuilding materials and equipment, including parts and steel products, to ensure smooth vessel construction within the United States.

Deputy Minister Park proposed cooperation plans linked to the South Korean government’s export support programs for materials and equipment and the ‘Korea-U.S. Shipbuilding Cooperation Center’ scheduled to open this year. He also expressed hope for greater collaboration in various fields, including industrial Artificial Intelligence Transformation (AX), with Pennsylvania’s excellent universities and research institutions.
Source: Business Korea