White House support for foreign-built Navy ships could open a path for Korean yards
The administration’s backing for overseas construction of four U.S. Navy vessels could create a rare opening for Korean shipbuilders, though Congressional approval remains uncertain.
Hats with the Masga slogan, which stands for Make American Shipbuilding Great Again, are placed on a table at the opening ceremony of the Korea-U.S. Shipbuilding Partnership Center in Washington on July 23.YONHAP
The White House expressed support to Congress for allowing four U.S. Navy vessels — two combat ships and two noncombat support vessels — to be built at foreign shipyards, a move that could create opportunities for Korean shipbuilders participating in a bilateral shipbuilding cooperation initiative with the United States.
The White House’s Office of Management and Budget said that it opposes provisions in the 2027 National Defense Authorization Act (NDAA) that would prohibit the Navy from procuring combat vessels from foreign shipyards, according to a Statement of Administration Policy (SAP) submitted to Congress on July 21.
SAP is the White House's formal position on pending legislation. In the document, the administration said it would prioritize legislation authorizing the Navy to contract with foreign shipyards to build two surface combatants and two noncombat auxiliary vessels.
The administration said the proposal would help ease the backlog at U.S. shipyards while encouraging major direct investment by foreign shipbuilders in the United States. Its broader goal is to initially acquire ships from overseas before transferring foreign shipbuilding technology and expertise to the United States to rebuild the country's domestic shipbuilding capacity.
If Congress adopts the proposal, Korean shipbuilders could emerge as leading candidates for the contracts.
At the 2026 Pennsylvania Defense and Innovation Summit held at the U.S. Army War College in Pennsylvania on July 15, U.S. President Donald Trump said the United States urgently needed more naval vessels because its existing fleet was aging and the country’s shipbuilding capacity had declined.
"We have to build our Navy [...] We got to get it going. So, we're going to probably look at some of these companies that are coming in from Korea and other places, and they're working with us on ships," Trump said at the event.
Korea proposed the Make American Shipbuilding Great Again initiative, or Masga, during bilateral tariff negotiations with the United States last year as part of efforts to help revive the U.S. shipbuilding industry.
Hanwha Ocean's Geoje shipyard in South GyeongsangYONHAP
As a follow-up, Korea’s Ministry of Trade, Industry and Resources signed a memorandum of understanding with the U.S. Department of Commerce in May to launch the Korea-U.S. Shipbuilding Partnership Initiative. Under the initiative, the two countries are pursuing cooperation on naval ship construction and maintenance, repair and overhaul by leveraging Korea's shipbuilding technology and production capacity.
Last month, the two countries also opened the Korea-U.S. Shipbuilding Partnership Center in Washington to expand cooperation on shipbuilding technology development and work force training.
Whether the White House proposal will survive congressional deliberations, however, remains uncertain.
Under the Byrnes-Tollefson Amendment, U.S. Navy combat vessels are generally prohibited from being built overseas. The law was enacted to protect the U.S. shipbuilding industry and preserve domestic warship-building capabilities for national security.
From left: Industry Minister Kim Jung-kwan, U.S. Ambassador to Korea Michelle Steel and Korean Ambassador to the United States Kang Kyung-wha look at a hat with the Masga slogan, short for Make American Shipbuilding Great Again, as they talk during the opening ceremony of the Korea-U.S. Shipbuilding Cooperation Center at the Mayflower Hotel in Washington on July 23.YONHAP
The amendment is also reflected in the 2027 NDAA, which states that U.S. Navy funds may not be used for procurement contracts involving combat vessels built at foreign shipyards.
The law does, however, allow exceptions if the president notifies Congress that overseas construction is necessary for national security.
The United States Coast Guard is already using that exception for its Arctic Security Cutter program — an ongoing program to recapitalize the U.S. Coast Guard’s aging fleet of polar icebreakers — according to U.S. Naval Research Laboratory’s USNI News. Construction of the lead vessel began in Finland in June after the contract was awarded late last year, while follow-on vessels are expected to be built concurrently in the United States.
BY HA SU-YOUNG [shin.woojin@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
