U.S. explores overseas warship hull production

The Pentagon may use $1.85 billion in naval research and development funding included in its fiscal 2027 budget request to build portions of U.S. warships in South Korea and Japan, according to a May 29 report by defense outlet Breaking Defense.

The funding was originally expected to support a study on whether U.S. naval vessels could be built at foreign shipyards. But an official with the White House Office of Management and Budget (OMB) told Breaking Defense that the money is intended for procurement rather than research. "No one spends $1.85 billion on research," the official said, noting that the amount could be enough to purchase an entire frigate, depending on the builder. The report said the administration is considering a framework in which the hull, machinery and electrical systems of up to two warships would be built in South Korea or Japan, while a U.S. defense contractor would oversee integration of the combat systems. The OMB official added that discussions are underway with South Korean shipbuilders including Hanwha Ocean, HD Hyundai and Samsung Heavy Industries, as well as Japanese companies Mitsubishi Heavy Industries, Kawasaki Heavy Industries and Japan Marine United.

Any overseas production of U.S. warships would likely serve as a stopgap rather than a long-term solution. The White House is pursuing a broader strategy that would encourage foreign shipbuilders from South Korea, Japan and elsewhere to establish new shipyards in the United States or acquire and modernize existing facilities. Under the Burns-Tollefson Amendment, the hulls and major components of U.S. warships generally cannot be built abroad without a presidential waiver.

In the short term, however, the White House is reportedly weighing the option of sourcing hulls and other key structures from shipyards in South Korea and Japan as it seeks to address shortcomings in U.S. shipbuilding capacity. The OMB official said South Korea and Japan produce advanced surface combatants at far lower cost than the United States and emphasized that Washington's goal is to foster competition and expand production. Through this transitional approach, the administration ultimately hopes to strengthen America's shipbuilding base by attracting greater investment from foreign firms.

The proposal is likely to face pushback from segments of the U.S. shipbuilding industry as well as some lawmakers. At a congressional hearing on May 19 attended by senior Navy officials, Sen. Angus King, an independent from Maine, sharply criticized the idea. "There is talk of building destroyers in Japan or South Korea, and that is the worst idea," he said.


김보라 purple@donga.com