MASGA project could strengthen Korea-U.S. alliance security

The MASGA (Make American Shipbuilding Great Again) project, in which South Korea will invest $150 billion, or about 210 trillion won, is expected to serve as a cornerstone of Korea-U.S. economic and security cooperation for decades. If realized, the plan could accelerate the project agreed upon by both countries’ leaders and potentially elevate the Korea-U.S. alliance to a higher level.

The U.S. Navy has reportedly told the South Korean government that President Donald Trump could issue an executive order as early as this year to ease the BURNS-TOLEFFSON Act, which bars the construction of U.S. warships, hulls, or components overseas. Along with the Jones Act, which requires that cargo transported between U.S. ports be carried on U.S.-built ships, this law is one of two major regulations hindering Korea-U.S. shipbuilding cooperation. Although bills to ease these rules have been introduced in Congress, their passage and timing remain uncertain, so officials are reportedly exploring temporary executive orders as a workaround.

If implemented, the executive order would allow large block modules and empty hulls for warship construction to be built in South Korea and then sent to Korean companies or partner U.S. shipyards for assembly and completion. With U.S. shipyards facing shortages of docks and skilled labor, this division of labor could significantly speed up warship production.

The U.S. government is reportedly considering such measures because expanding its numerically lagging naval fleet is urgent. The Navy currently has 296 ships and aims to increase that number to 381 by 2054. With aging vessels set for decommissioning, more than 300 new warships will need to be built over the next 30 years. Given that the U.S. shipbuilding industry has produced only 37 vessels in the past decade, achieving this goal would be impossible without support from South Korea, the world’s second-largest shipbuilding power after China.

Amid this, U.S. Treasury Secretary Scott Bessent identified shipbuilding as a key industry in which the U.S. government could acquire equity in exchange for subsidies, following semiconductor companies such as Intel. His remarks could be interpreted to mean that South Korea would provide the investment to revive shipbuilding while the United States would retain strategic control.

The MASGA project is expected to serve as a cornerstone for Korea-U.S. economic and security cooperation for decades. Officials must convince the U.S. that the project aligns with the national interests of both countries, or its success will be difficult to achieve.