"Up to Two U.S. Warships Can Be Built Abroad"... Will 'MASGA' Gain Momentum?

[Anchor]

In the United States, there is a law mandating that warships must be built on U.S. soil. However, President Trump has decided to exempt foreign companies that invest in the U.S. shipbuilding industry from this obligation. As this could also apply to South Korean shipbuilders, it is being interpreted as a green light for the MASGA project for South Korea-U.S. shipbuilding cooperation.

Reporter Kim Young-a has the details.

[Reporter]

In an executive memorandum signed on the 13th local time, U.S. President Trump allowed foreign shipbuilding companies to build up to two U.S. warships in their home countries.

This applies only to foreign companies that either build a new shipyard in the U.S. or acquire ownership or a controlling stake of a majority in an existing U.S. shipyard.

Trump also attached conditions stating that after the initial two vessels, all subsequent ships must be built in the U.S. using American workers, and the technology must also be transferred.

It is evaluated that South Korea's Hanwha Ocean, which acquired Philly Shipyard in the U.S. in 2024, is the only company in the world currently capable of meeting these conditions.

The shipbuilding industry expects that various administrative procedures related to Philly Shipyard will accelerate and order volumes will increase significantly.

Late last month, President Trump emphasized strengthening naval power and publicly mentioned "South Korean companies."

[Trump / U.S. President (on the 15th of last month): We'll be looking at companies from other countries, including South Korea. We will also be purchasing ships built abroad.]

This move is driven by the urgent need to secure warships and rebuild the shipbuilding industry in order to check China, which is expanding its maritime hegemony leveraging its status as the world's top shipbuilding nation.

The intent is to quickly build the initial volume in foreign countries equipped with skilled technology and infrastructure, and then rebuild the U.S. shipbuilding industry using the transferred technology.

The $150 billion South Korea-U.S. shipbuilding cooperation project, MASGA, is expected to gain momentum.

The presidential office stated that it understands the U.S. administration is continuously pursuing concrete measures to rebuild the U.S. shipbuilding industry through this memorandum and expressed hope to materialize cooperation plans.

(Video Editing: Chae Chul-ho)