Hanwha Philly Shipyard in Pennsylvania (Hanwha Group) US President Donald Trump has moved to allow foreign companies investing in American shipyards to build up to two ships at their home-country facilities, which could give South Korea’s Hanwha a major advantage in its US naval shipbuilding business.Trump signed a presidential memorandum Thursday aimed at rebuilding the US Navy and domestic shipbuilding industry, creating an exemption to long-standing rules against the construction of US military vessels at foreign shipyards."As foreign shipbuilders make substantial and durable investments into America's shipyards and train an all-American workforce for the jobs they create, they will be temporarily permitted to build up to two ships in their parent shipyards that will be delivered to bridge gaps on a quick turnaround, while additional ships will be built in revitalized American shipyards," the White House said in a fact sheet.Under what the White House calls the “Finland Model,” a foreign shipbuilder would be allowed to construct up to two vessels at its home shipyard if it simultaneously builds a new US shipyard or has ownership — or a majority stake — in an existing one. Beyond those first two ships, all subsequent vessels would have to be constructed in the US.The company must also hire and train US workers, license shipbuilding technologies to US shipyards and source components through US supply chains for the construction and maintenance of the vessels.The rule is applied to three ship classes: consolidated cargo replenishment tankers, roll-on, roll-off vessels for military transport, and surface combat vessels for anti-submarine warfare, surface warfare and convoy escort missions.The move clears a major hurdle amid Seoul’s push to take part in reviving US shipbuilding sector. South Korea has committed to investing $150 billion in the US shipbuilding sector.Hanwha Group, which already owns a shipyard in Philadelphia, is expected to be a key beneficiary because it meets one of the policy’s central requirements.Hanwha acquired Philly Shipyard in 2024, giving the company an existing US shipbuilding base that could satisfy a key requirement of the new rule. The company announced last year that it would invest $5 billion to expand the facility, adding docks and quays aimed at raising production capacity.Under the new policy, Hanwha could potentially build the first vessels at Hanwha Ocean’s shipyard in Geoje, South Gyeongsang Province, before shifting follow-on production to its US facilities, provided specific contracts receive the required national security waiver.Hanwha is also seeking to expand its US footprint through a proposed acquisition of US arm of Austal, Australia’s biggest shipbuilding company and one of the US Navy and Coast Guard’s major ship suppliers.Hanwha Defense USA, a US subsidiary of Hanwha Aerospace, has made a preliminary, nonbinding offer valuing Austal USA at $1.05 billion to $1.2 billion. Austal has granted Hanwha a four-week due diligence period.If completed, the deal would give Hanwha control of Austal USA’s shipyard in Mobile, Alabama, adding a major naval construction base to its existing Philadelphia operation.