South Korea pledges $150 billion to revive U.S. shipbuilding in bid to woo Trump

South Korean President Lee Jae Myung is prioritizing shipbuilding during his inaugural visit to Washington, D.C., announcing a significant investment aimed at revitalizing the U.S. shipbuilding sector. This initiative aligns with former President Donald Trump’s campaign to enhance American shipbuilding capabilities. Lee’s commitment includes a substantial $150 billion from South Korea’s broader $350 billion investment pledge, aimed at addressing the challenges faced by the industry.

Major Investments and Strategic Partnerships

During a summit with President Trump, President Lee unveiled plans to inject $150 billion into the U.S. shipbuilding industry, a move that underscores South Korea’s commitment to fostering economic ties with the United States. On the agenda for Lee’s visit is a tour of Hanwha Group’s Philly Shipyard in Philadelphia, a key project under this initiative. Hanwha, which took ownership of the shipyard last year, aims to invest up to $5 billion to ramp up production from fewer than two vessels annually to as many as 20. This ambitious goal starkly contrasts with Hanwha’s operations in South Korea, where the company produces a ship every week.

President Lee emphasized the potential of the South Korean shipbuilding industry, stating, “The K-shipbuilding industry, equipped with the world’s strongest capabilities, will bring about a renaissance of the U.S. shipbuilding industry and create a new historic turning point for mutual prosperity.” In addition to the shipbuilding focus, South Korea’s industry ministry reported the signing of 11 agreements covering various sectors, including nuclear energy, aerospace, gas, and critical minerals.

Furthermore, HD Hyundai, in collaboration with the Korea Development Bank and U.S.-based Cerberus Capital, is set to establish a multibillion-dollar investment fund aimed at enhancing maritime capabilities across shipbuilding, marine logistics, and advanced technology. Samsung Heavy Industries has also entered into a partnership with Vigor Marine Group to support U.S. Navy vessel maintenance, shipyard modernization, and joint ship construction efforts.

South Korea’s proposal to win over Trump: ‘Make America Shipbuilding Great Again’

Challenges Ahead for Foreign Investment

Despite the ambitious investment pledges, foreign participation in the U.S. shipbuilding sector faces significant legal and regulatory challenges. Analysts highlight that navigating these hurdles will be crucial for transforming Seoul’s “Make America Shipbuilding Great Again” initiative—first proposed during tariff discussions in July—into a sustainable U.S.-Korea trade and industrial partnership. The success of these investments will depend on overcoming existing barriers and fostering a collaborative environment between the two nations.

As President Lee continues his visit, the focus remains on building a robust framework for cooperation that could redefine the future of shipbuilding in the United States, while also strengthening economic ties with South Korea.