The recent conclusion of U.S.–Korea tariff negotiations has yielded the first visible fruit of Seoul’s proposal to launch the MASGA initiative — “Make America’s Shipbuilding Great Again.” File Photo by Brian Kersey/UPI | License Photo
The recent conclusion of U.S.-Korea tariff negotiations has yielded the first visible fruit of Seoul’s proposal to launch the MASGA initiative — “Make America’s Shipbuilding Great Again.” That success, now embodied in the contract secured by HD Hyundai Heavy Industries to service a U.S. Navy vessel, has raised hopes for a higher level of cooperation between Seoul and Washington.
On August 7, HD Hyundai Heavy Industries announced it had won its first maintenance, repair, and overhaul, or MRO, order from the U.S. Navy. The contract covers the USNS Alan Shepard, a 41,000-ton replenishment ship assigned to the Navy’s Seventh Fleet. Hyundai will begin work in September at its Ulsan facility, carrying out propeller cleaning, tank servicing, and equipment inspections, before redelivering the ship in November. For Hyundai, this marks its first MRO project. But more importantly, it is the first American naval contract to flow to a Korean shipbuilder since the MASGA initiative was agreed upon in the wake of tariff talks — a symbolic opening chapter in a partnership that could reshape bilateral industrial ties.
The Alan Shepard — named for the former naval aviator who became America’s first astronaut — is 688 feet long, 104 feet wide, and 30 feet high. Its repair is part of an MRO program estimated to be worth about $15 billion annually, with margins as high as 15%. A foothold in this program could pave the way for deeper cooperation in naval shipbuilding, which is why Korean companies such as Hyundai and Hanwha Ocean have been aggressively pursuing MRO bids since last year. Industry projections suggest Hyundai aims to secure two to three vessels this year, while Hanwha, which has already won three contracts since 2024, is targeting five to six. Competitors in Singapore are pursuing the same market, and Japan is preparing to enter as well.
Hyundai has been accelerating its entry into the U.S. market. This year, it signed a memorandum of understanding with Huntington Ingalls Industries, America’s largest defense shipbuilder, to cooperate on advanced shipbuilding technology. It also reached a strategic partnership with Edison Chouest Offshore to build U.S. merchant vessels, and in June hosted a bilateral forum with professors of naval and ocean engineering from the University of Michigan and MIT. These moves reflect the broader momentum behind MASGA and the desire to anchor it with enduring institutions.
Joo Won-ho, head of Hyundai’s special ship division, hailed the Alan Shepard order as “a landmark achievement, the first since Korea proposed the MASGA project to Washington.” He pledged to ensure its success and expressed confidence that Hyundai could become a partner in strengthening U.S. naval power. That confidence rests on Hyundai’s record: more than 130 special-purpose vessels delivered, a dedicated naval dockyard in Ulsan, and the capacity — through its affiliates Mipo and Samho — to service multiple ships at once. Moreover, Hyundai has advanced repair methods that allow quay-side servicing, overcoming spatial limitations of traditional dry docks.
Hyundai’s Gunsan shipyard — spanning 18 million square meters, with vast docks and a 1,650-ton Goliath crane — is regarded as the most suitable site for a U.S. naval repair base. Its proximity to Camp Humphreys, home to the U.S. Eighth Army, offers unique security advantages, and with modest upgrades, the yard could be converted into a hub not only for repairs but also for new naval construction, should U.S. law permit overseas shipbuilding.
According to the U.S. Navy’s plan, Washington aims to expand its fleet from 270 to 390 warships by 2054, a 30-year buildup intended to counter China’s growing maritime power and requiring $20 billion annually. Yet America’s diminished shipbuilding sector is ill-equipped for such an undertaking. To address this gap, Korea — long a global leader in shipbuilding — proposed the MASGA initiative during the recent tariff talks, winning U.S. assent and helping establish a $150 billion fund to finance both MRO and new construction. As a result, bilateral cooperation is expected to accelerate, with Hanwha Ocean already leading the way. Since acquiring the Philadelphia Navy Yard, it has won three MRO contracts and delivered two vessels, underscoring Korea’s role on the front line of what some now call a new maritime defense alliance.
Having earned the Navy’s confidence in its MRO capabilities, Hanwha Ocean in July secured a third repair order for a U.S. naval vessel: the USNS Charles Drew, a 41,000-ton replenishment ship of the Seventh Fleet. At 688 feet long and 104 feet wide, it is a large non-combat support vessel of the same class as the USNS Wally Schirra, which Hanwha had previously serviced — the first such contract ever awarded to a Korean shipbuilder. The deal is valued at several hundred billion won. When the Charles Drew arrives at Hanwha’s Geoje yard, the company will spend three months on hull repairs, exterior refurbishment, and frame reassembly. During its earlier work on the Wally Schirra, Hanwha identified hidden structural damage that even U.S. inspectors had missed, secured a supplemental contract, and impressed Navy officials with the sophistication of Korean shipbuilding expertise.
These accumulated achievements prompted U.S. Navy Secretary Carlos Del Toro to visit Hanwha’s Geoje facility in February. And just before the U.S.-Korea tariff agreement was concluded, John C. Phelan, the newly appointed Navy Secretary under President Trump, together with White House budget director Russell Vought, inspected Hanwha’s recently acquired Philadelphia Navy Yard. Their detailed tour underscored the seriousness with which Washington was weighing Korean contributions. That the tariff accord was announced the very next day has been widely interpreted as evidence of the confidence America has placed in Korea’s shipbuilding industry.
For eight decades, the U.S.-Korea alliance has been defined largely by one-sided military largesse flowing from Washington to Seoul. MASGA suggests a different trajectory: the prospect of a two-way partnership. By compensating for America’s industrial shortfalls, Korea can now engage the United States on more equal terms. This is the shape of a complementary alliance emerging from the tariff negotiations, and the first step was marked by Hyundai Heavy Industries’ order to service the Alan Shepard. One hopes this project will set the stage for a genuine win-win: the reinforcement of America’s naval power and the full deployment of Korea’s world-class shipbuilding prowess.
Nohsok Choi is the former Chief Editor of the Kyunghyang Shinmun and former Paris Correspondent. He currently serves as President of the Kyunghyang Shinmun Alumni Association, President of the Korean Media & Culture Forum, and CEO of the YouTube channel One World TV.
