Philadelphia: U.S. Secretary of the Navy John Phelan and White House budget official Russel Vought recently toured Hanwha Philly Shipyard in anticipation of the latest trade agreement between Seoul and Washington, which includes a 15 percent reciprocal tariff on South Korea.

According to Yonhap News Agency, Hanwha Philly Shipyard, located in Philadelphia, was acquired in December by South Korea's Hanwha Ocean Co. and Hanwha Systems Co., affiliates of Hanwha Group. The visit on July 30 followed South Korea's introduction of a $150 billion initiative called "Make American Shipbuilding Great Again (MASGA)," aimed at revitalizing the U.S. shipbuilding industry.

The MASGA initiative is part of a larger $350 billion investment package from Seoul, contingent upon Washington's decision to reduce reciprocal tariffs on South Korean imports from 25 percent to 15 percent. Hanwha Group Vice Chairman Kim Dong-kwan emphasized the project's goals to establish a new shipyard in the U.S., train a skilled workforce, rebuild supply chains, and enhance maintenance, repair, and overhaul capabilities.

During the visit, Kim briefed U.S. officials on Hanwha's business and investment plans in the U.S., seeking continued support and cooperation from the U.S. government. Phelan noted that his visit was to observe Hanwha's investments firsthand and evaluate their enhancements to American shipbuilding.

In April, Phelan also visited Hanwha Ocean's shipyard in Geoje, South Korea, to discuss naval defense cooperation. The visit aligns with U.S. President Donald Trump's calls to rebuild the American shipbuilding sector and strengthen industrial partnerships with allies like South Korea.

Hanwha has committed to expanding Philly Shipyard's annual shipbuilding capacity from 1-1.5 vessels to over 10 ships by 2035, aiming to maximize synergies by securing multiple shipyards across the U.S.