Government Requests U.S. to Streamline Philli Shipyard Permits and Build Infrastructure

Pressure Mounts for Improved Investment Conditions as MASGA Project Gains Momentum
Requests Made for Tariff Exemptions and Incentives

Hanwha Philippines Shipyard exterior view. Hanwha Ocean.

As South Korea and the United States expand their cooperation in shipbuilding, the South Korean government has officially requested that the state of Pennsylvania expedite shipyard permit procedures and establish essential infrastructure to support the project locally. There are now assessments that the MASGA (Make American Shipbuilding Great Again) project—a Korea-U.S. shipbuilding cooperation initiative—has entered a concrete implementation phase.

The Ministry of Trade, Industry and Energy announced on March 18 that Park Dongil, policy chief at the ministry, met with Rick Siger, Secretary of the Pennsylvania Department of Community and Economic Development, at the Plaza Hotel in Seoul to discuss plans to expand shipbuilding and industrial cooperation.

During the meeting, Mr. Park identified the acceleration of administrative procedures such as permitting, and the proactive establishment of infrastructure including transportation and electricity, as key priorities, and requested strong support from the state of Pennsylvania.

He also emphasized the need for government-level incentives, given the region’s high labor costs, and requested that the Philly area be designated as a Marine Prosperity Zone (MPZ) under the U.S. Marine Action Plan (MAP).

In addition, he called for consideration of tariff exemptions on shipbuilding equipment, such as parts and steel products, to alleviate cost burdens during ship construction in the United States.

Pennsylvania is home to the Philly Shipyard, which was acquired by Hanwha Ocean. This meeting was arranged to discuss ways to advance cooperation related to expanded investment by Korean companies in the U.S. shipbuilding industry.

Since Hanwha Ocean acquired Philly Shipyard from Norway's Aker in December 2024, the shipyard has been constructing training vessels and medium-sized tankers. The company plans to expand its site and automate facilities to increase annual production capacity from the current level of 1.5 ships to more than 10 ships.

A representative from the Ministry of Trade, Industry and Energy stated regarding the MASGA initiative, "We are reviewing measures to expand production capacity, workforce training, and supply chain resilience in the United States. We also plan to link shipbuilding equipment export support programs with the 'Korea-U.S. Shipbuilding Cooperation Center,' and will further expand industrial AI transformation (AX) cooperation with local universities and research institutions."

The government plans to continue discussions to build a structure in which both countries benefit from the MASGA project, while also working to improve conditions for Korean companies investing in the United States.

This content was produced with the assistance of AI translation services.