South Korea's government and its shipbuilders disagree over who should commit first under the $150 billion "Make American Shipbuilding Great Again" (MASGA) initiative. The bilateral investment memorandum was signed in November 2025, nearly a year ago.
Lee Di-do, a Ministry of Trade, Industry and Resources official, told Korea JoongAng Daily that, "ultimately, companies must make their own investment decisions first." He said the government would then assess resulting US projects on commercial grounds.
"The $150 billion is a figure that came out during negotiations. It was never broken down from the outset into specific commitments assigning each party a set amount to invest," he added.
Industry sources told the newspaper that government funds should be in place before capacity is expanded to support large-scale ship production.
"Hanwha Ocean had planned to use the investment fund to expand its shipyard and increase capacity, but the expansion has been delayed as the fund has yet to take concrete shape," a source familiar with the matter said of Hanwha Philly Shipyard's expansion. "That could cut the number of orders it can take on by half."
The Export-Import Bank of Korea said participating institutions were continuing discussions. It said financing measures would be developed for each project as opportunities arose.
Hanwha acquired the Philadelphia yard in December 2024. In August 2025 it announced a $5 billion plan to add two docks and three quays and raise annual output from fewer than two vessels to as many as 20.
South Korea's National Assembly approved the investment framework on March 12.
