HD Hyundai teams with Huntington Ingalls on Navy ship

HD Hyundai announced it will team up with Huntington Ingalls Industries, the largest U.S. defense shipbuilder, to jointly build the U.S. Navy’s next-generation logistics support ships.

Although Korean shipyards have previously handled U.S. naval maintenance and overhaul projects, this is their first direct involvement in constructing new warships. The partnership is expected to further advance the South Korea-U.S. MASGA shipbuilding initiative.

On Oct. 26, ahead of the Asia-Pacific Economic Cooperation summit in Gyeongju, HD Hyundai signed a memorandum of agreement with Huntington Ingalls to collaborate on designing and constructing both merchant and naval vessels. The next-generation logistics support ship will be central to modernizing the U.S. Navy’s supply and logistics capabilities. The companies also plan to jointly invest in U.S. shipbuilding facilities and are exploring an engineering joint venture.

Since the MASGA project launched, South Korean shipyards have accelerated U.S. market entry strategies, including establishing local subsidiaries and building ships domestically. Hanwha Ocean, which acquired a U.S. shipyard in Philadelphia last year, plans to expand its capacity from 1–1.5 ships annually to 20 ships.

Samsung Heavy Industries has also formed a partnership with a U.S. naval maintenance firm. The APEC summit, scheduled for Oct. 27–31, is expected to highlight South Korea’s shipbuilding industry, with leaders and business officials visiting shipyards and the possibility of a surprise appearance by U.S. President Donald Trump.

The MASGA project faces significant challenges. U.S. regulations, including the Jones Act and Burns-Toleffson Act, prohibit the overseas construction of U.S. vessels. For Korean-built ships to qualify as “allied production,” the South Korea-U.S. Reciprocal Defense Procurement Agreement must be implemented. The project also faces competition from Japan, pursuing a U.S. shipbuilding cooperation memorandum, and opposition from China, which recently sanctioned five Hanwha Ocean U.S. subsidiaries.

The MASGA project has created an initial breakthrough in tariff negotiations and established a foundation for South Korea-U.S. economic and security cooperation. Once shipbuilding collaboration takes shape, it could support future tariff negotiations and pave the way for joint projects in semiconductors, nuclear power, and artificial intelligence. Strong government policy and diplomatic backing will be essential for South Korean shipbuilders to succeed in the U.S. market.