KUSPC: Commercial Shipbuilding’s New Partnership or an Outlet to Support Defense Acquisitions?

On July 23rd, 2026 Amtech, courtesy an invitation from the U.S. Department of Commerce, attended the Grand Opening of the Korea-U.S. Shipbuilding Partnership Center (KUSPC) in Washington DC, a Secretary level event with invitations provided to recognized leaders in the U.S. commercial and naval shipbuilding industry. Amtech has been working with Commerce from the initial release of the first Executive Order issued to recover and develop U.S. maritime dominance. And with that, we will take this opportunity to thank our contacts at Commerce in Washington and Seoul for that support.

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On arrival to the morning event, the intent was clear. Red "MASGA" hats with U.S. and South Korean flags side by side announcing “Make American Shipbuilding Great Again” were at every seat position. A sweep of the room indicated the majority of the attendees were South Korean. A subliminal thought for us as the attendee numbers and the U.S. minority defined the comparable size of U.S. commercial shipbuilding versus South Korean capability. Amtech supports an office in Ulsan, South Korea and has members involved in South Korean Shipbuilding since 1982. With that experience it should be clear we are commercial ship construction managers and operators. Our “MASGA” effort involving Hyundai and the South Korean yards has been proposed in many of our recent projects from commercial AIP submarines, Console tankers, Hospital ships and support vessels. Our efforts have not been combatant ships or Navy Registered vessels.

The KUSPC VIP attendees were announced on their arrival and our apologies as the list here is not complete. Maritime Administrator Steve Carmel, Senators Kelly and Young representing the Ships for America Act, and the honorable Huang Cao Acting Secretary of the Navy provided MarAd, legislative and Naval interest throughout the event.  Speakers included South Korean/U.S. Ambassadors Michelle Steel, Kyung-Wha Kang. Jung Kwan Kim Minister of Trade and Tae Kon Kim Director General of DAPA (South Korea Defense Acquisition Program Administration) along with Senator Todd Young and Marad’s Chief of Staff Anthony Fisher.

Commerce Secretary Howard Lutnick addressed the event on his arrival. His takeaway statement confirming the administration will determine the success of the program by delivered projects rather than rhetoric and media announcements. “We are going to judge the KUSPC by the capital it deploys, the facilities developed, the workers you train, the supply chains you establish, and ultimately the simple number of how many domestically produced ships we build together.”

A simple statement confirming KUSPC was not looking to talk the talk, rather walk the walk with commitment and results supporting U.S. manufacturing, the supply chain and U.S shipbuilding.

With that commitment let’s look at the “numbers” provided during the event and illustrated by several projection screens and speakers defining the program. KUSPC serves as the premier platform facilitating $150 billion in Foreign Direct Investment (FDI) into the U.S. Maritime Industry. The core mission of that funding is to rebuild and modernize U.S. shipbuilding capabilities through strategic alliances. The program also announced an $80 million-dollar, five-year effort covering areas of new smart ship technologies with AI-assisted design, robotic welding, module-block transportation, and autonomous navigation. Further $5 billion dollar packages were announced for Hanwha to expand their Philly yard and Hyundai to expand their U.S. efforts. $13.5 million was set aside to open and fund the KUSPC Washington offices.

Fifteen MOU announcements taking place throughout the event.
Image courtesy Amtech 

Fifteen MOU’s were executed and announced during the event. The top four describing a program with Samsung & Saronic collaboration addressing naval autonomous vessel operation, HD Korea Shipbuilding & Offshore Engineering next generation marine partnerships, Hanwha Ocean announcing a professional services contract with Leidos Gibbs & Cox to jointly design a fast sealift vessel. A dual-use ship to carry commercial cargo during peacetime and move military equipment in a defense theater. A historical return to the time of the MarAd Sealand SL7 fast sealift ships and LMSR program (now in Ready Reserve Force layup) pre- and post-Iraqi wars. The final of the four top MOUs addressing an agreement with HD Hyundai Samho to provide port cranes for Washington United Terminals on the U.S. West Coast. In no uncertain terms, the number of “announcements” favored Hanwha, naval oriented vessels and infrastructure with a continued reference to their purchase of the Philadelphia Shipyard.  The remaining 11 MOUs described working platforms with several U.S. shipyard companies, defense technology groups, universities and research organizations covering shipyard modernization, supply chain issues, workforce development and joint technology programs. The top four major announcements may have been the ticker-tape parade, however, the smaller follow-on MOUs addressed important detailed issues towards rebuilding competitive U.S. shipyards. Miller Electric Manufacturing, a well-known source of welding expertise to those of us that live and work in the U.S yards, introduced a MASGA cooperation project with new welding inspection technology. Delaware County Community College was recognized as building shipyard labor training cooperation with Hanwha Philly. A Department of Labor program Amtech has been involved with at Massachusetts Maritime Academy.    

A week or so prior to the KUSPC event, Hanwha Philly announced the award of a $2 billion contract to build two new missile-tracking vessels for U.S. Missile Defense. That award statement is correct with “B” as in Billion. The vessels are replacing the Pacific Tracker and Pacific Collector owned by the US Government and operated by Tote Services. The award indicates another construction movement towards Naval and Military applicable vessels without historical competitive bid.  

The interest in this specific U.S. government market is widely reported in the South Korea press and media. 

Our interest is how it affects both U.S. and Foreign commercial shipbuilding capacity, price and available delivery dates. An affect that can influence the ability to “flag in” cost affective new foreign tonnage for proposed Marad and Cargo Preference programs and more importantly vessels qualified for U.S. coastwise registry to rebuild an aging “Jones Act” fleet. A market upside down as it responds to the current waiver and over 180 foreign vessel voyages trading along the U.S. coasts.

In 2025, the Korean press announced HD Hyundai plans to merge HD Hyundai Mipo (HMD) with their Naval “Special Purpose” Planning office and production. HD Hyundai Heavy Industries looked to expand its naval defense business overseas with warship orders by combining HD Hyundai warship construction technology with Hyundai Mipo's production infrastructure.

HMD has been long considered the lead designer and builder of Medium Range tankers. A tanker design tagged in many industry reports as needed to support a U.S. Indo-Pacific defense theater with up to 100 vessels. The HD Hyundai production shift earmarked slots for only Naval based contracts and as a result more than several commercial operators, with prior commercial construction history delivering MR tonnage at HMD, set their next projects in China.

Hanwha Ocean and HD Hyundai Heavy Industries failed to win Canada's submarine program order in 2026. The program was a joint cooperation between the two companies and the loss severely affected their future defense revenue projections. The third large South Korean shipbuilder, Samsung Heavy Industries, does not build warships. Its MASGA MOU with Saronic is an indication that may change. As a result of the Canadian Submarine contract loss, Hanwha Ocean and HD Hyundai are targeting warship programs established throughout the world to develop naval defense exports. The most recent orders expected in Southeast Asia and South America. Through the Korea-U.S. MASGA shipbuilding partnership project, they are also preparing a long-term goal of building U.S. warships. Amtech has presented commercial projects to develop tonnage that attracts private investment and supports defense requirements without the delivered tonnage being U.S. Naval registration. To meet expedited delivery requirements a small portion of those projects may be required in foreign yards prior to “reflag”. This is the “bridge” issue now being debated.

The U.S. Shipbuilding industry and vessel operators need to understand that these programs are defense programs not commercial shipbuilding and operation. U.S. shipyards need a separate program to address the cost of construction to allow private investment.

A commercial industry is a business sector focused on trade, manufacturing, or providing services with the primary goal of making a profit. To attract private investment that business sector or project must develop a business model that not only provides an acceptable Capital Cost to build the infrastructure or assets, but also an efficient Operating Expense and profit to maintain and operate the asset through its life.  The KUSPC program can assist the U.S. Shipyards in meeting those immediate goals for the projects under MOU. It needs to take into account “life” after the Federal Direct Investment and the commercial markets beyond defense that support commercial seafarers and private operators whether under coastal registry, cargo preference, Marad programs or the attempt to reach Global competition levels of operation. 

Billion-dollar vessel construction will not meet that commercial goal.  

Power point presentation introducing the program.
Image courtesy Amtech