South Korea’s $150B MASGA initiative targets U.S. shipyard upgrades, advanced tech transfer, and stronger U.S.–Korea defense cooperation.
The “Make American Shipbuilding Great Again” initiative, or MASGA, was conceived during tariff negotiations between Seoul and Washington in mid-2025. At the time, the United States was considering imposing a 25 percent tariff on Korean products, but South Korea proposed a $150 billion industrial cooperation package, leading to an agreement that reduced the tariff rate to 15 percent. The plan’s core objectives are to modernize American shipyards, introduce advanced manufacturing technologies, and train skilled workers. Its name evokes former U.S. President Donald Trump’s campaign slogan and is viewed as a strategic nod to political symbolism in the United States.
MASGA aims to address structural challenges in the U.S. shipbuilding industry, including outdated infrastructure, shortages of skilled labor, and slow production rates. These constraints have hindered the U.S. Navy’s ability to meet its legislated goal of maintaining a 355-ship fleet. In contrast, South Korea holds a competitive edge in the global shipbuilding market, especially in LNG carriers, and plans to transfer its expertise to the U.S. through joint ventures, licensed production, and maintenance, repair, and overhaul (MRO) cooperation.
To implement the initiative, the South Korean government has formed an inter-ministerial consultative body to coordinate with U.S. counterparts, while major Korean shipbuilders have established dedicated task forces. This dual-track approach focuses on both modernizing U.S. shipyards and transferring advanced Korean technologies. Notable examples include Hanwha Group’s $100 million acquisition of Philly Shipyard in 2024 and the yard securing a $250 million LNG carrier order from a U.S. client. Hanwha Ocean has also held naming ceremonies for LNG carriers ordered by U.S. buyers.
Discussions between South Korea’s Defense Acquisition Program Administration and the U.S. Navy Department have considered a modular construction model in which hull blocks are built in Korea and final assembly is completed in the United States. However, no bill has yet been confirmed as formally introduced in Congress to amend the Jones Act to allow allied-built merchant ships in U.S. coastal trade.
From Washington’s perspective, MASGA is expected to help reduce maintenance backlogs, improve fleet readiness, and rebuild the domestic shipbuilding base. For Seoul, the initiative offers a chance to integrate its shipbuilding technology deeply into U.S. maritime supply chains and strengthen defense-industrial ties with a key ally. In a global environment marked by U.S.–China strategic competition and rising economic nationalism, MASGA stands as an example of alliance-driven industrial cooperation that could serve both economic and security interests—though some of its more ambitious expectations will need to be proven in practice.