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2w ago

U.S. Probes South Korean Shipyards to Speed Navy Expansion

Exploratory RFIs alongside congressional yard visits probe allied capacity despite U.S. law that bars foreign construction

U.S. Commerce Secretary Howard Lutnick speaks during an event marking the opening of the Korea-U.S. Shipbuilding Partnership Center (KUSPC) in Washington on July 23, 2026. (Yonhap)
New U.S. Ambassador to South Korea Michelle Steel speaks during an event marking the opening of the Korea-U.S. Shipbuilding Partnership Center (KUSPC) in Washington on July 23, 2026. (Yonhap)
South Korea's Industry Minister Kim Jung-kwan speaks during an event marking the opening of the Korea-U.S. Shipbuilding Partnership Center (KUSPC) in Washington on July 23, 2026. (Yonhap)
South Korea's Ambassador to the U.S. Kang Kyung-wha speaks during an event marking the opening of the Korea-U.S. Shipbuilding Partnership Center (KUSPC) in Washington on July 23, 2026. (Yonhap)

Overview

  • The Pentagon and U.S. Navy have sent requests for information to South Korea’s top builders and members of the U.S. House Appropriations Defense subcommittee toured Hanwha, HD Hyundai and Samsung yards on July 11–12 to inspect combat-ship and replenishment-oiler capabilities.
  • A longstanding U.S. statute, Section 8679 of Title 10 (the Byrnes-Tollefson Amendment), broadly prohibits foreign construction of Navy vessels or major hull components and includes a narrow presidential national-security waiver that has not been used.
  • Commercial steps are already under way in the United States, including Hanwha Philly Shipyard’s reported $2 billion contract for two missile-tracking vessels and broader Korean investments aimed at boosting U.S. shipbuilding capacity.
  • The U.S. Navy has asked Congress to permit limited overseas construction of auxiliary ships and to allow prime contractors more latitude to subcontract non-sensitive modules to allies, but the Senate and House are split on FY2027 language.
  • Given legal limits, domestic political resistance and the time needed to scale U.S. yards and supply chains, near-term cooperation is likeliest to focus on U.S.-based investment, repair and overhaul work, auxiliary vessels and fabrication of non-sensitive modules rather than full combat-ship builds overseas.