SEOUL, Aug. 18 (UPI) -- The recent conclusion of U.S.-Korea tariff negotiations has yielded the first visible fruit of Seoul's proposal to launch the MASGA initiative -- "Make America's Shipbuilding Great Again." That success, now embodied in the contract secured by HD Hyundai Heavy Industries to service a U.S. Navy vessel, has raised hopes for a higher level of cooperation between Seoul and Washington.
On August 7, HD Hyundai Heavy Industries announced it had won its first maintenance, repair, and overhaul, or MRO, order from the U.S. Navy. The contract covers the USNS Alan Shepard, a 41,000-ton replenishment ship assigned to the Navy's Seventh Fleet. Hyundai will begin work in September at its Ulsan facility, carrying out propeller cleaning, tank servicing, and equipment inspections, before redelivering the ship in November. For Hyundai, this marks its first MRO project. But more importantly, it is the first American naval contract to flow to a Korean shipbuilder since the MASGA initiative was agreed upon in the wake of tariff talks -- a symbolic opening chapter in a partnership that could reshape bilateral industrial ties.
The Alan Shepard -- named for the former naval aviator who became America's first astronaut -- is 688 feet long, 104 feet wide, and 30 feet high. Its repair is part of an MRO program estimated to be worth about $15 billion annually, with margins as high as 15%. A foothold in this program could pave the way for deeper cooperation in naval shipbuilding, which is why Korean companies such as Hyundai and Hanwha Ocean have been aggressively pursuing MRO bids since last year. Industry projections suggest Hyundai aims to secure two to three vessels this year, while Hanwha, which has already won three contracts since 2024, is targeting five to six. Competitors in Singapore are pursuing the same market, and Japan is preparing to enter as well.
