Seoul: Hanwha Group Chairman Kim Seung-youn has issued a strategic call to action for bolstering future technological capabilities in artificial intelligence (AI) and defense, alongside advancing shipbuilding collaboration between South Korea and the United States.
According to Yonhap News Agency, during his New Year's address, Kim emphasized Hanwha's emerging role as a national leader in the defense and shipbuilding sectors. This leadership is pivotal in driving the Seoul-Washington industrial cooperation under the MASGA project, an initiative aimed at revitalizing the U.S. shipbuilding industry. The MASGA project stands for "Make American Shipbuilding Great Again," a slogan introduced by the South Korean government.
Kim highlighted the importance of securing core technologies amid increasing global competition, particularly in AI and defense. He asserted that possessing foundational technologies is essential for maintaining leadership over the long term. Furthermore, Kim expressed his commitment to the MASGA project, stating it should be pursued with determination and responsibility, focusing on operations at Philly Shipyard in the U.S.
In 2024, Hanwha Group acquired Philly Shipyard for 140 billion won (approximately US$97 million), marking a significant entry into the U.S. shipbuilding market. This acquisition aims to secure future contracts with the U.S. Navy, marking a strategic expansion for Hanwha and solidifying its position within the MASGA initiative. Philly Shipyard has become a crucial component of the project, being the first U.S. shipyard acquired by a South Korean company.
Kim also underscored the importance of enhancing and deepening shipbuilding cooperation between the U.S. and South Korea, particularly in constructing naval vessels and nuclear-powered submarines. This call for collaboration follows a trade agreement signed in July of the previous year, which saw a reduction in U.S. tariffs on South Korean goods from 25 percent to 15 percent. In exchange, South Korea pledged $350 billion in investments and committed to $100 billion in U.S. energy product purchases. From the pledged investment, $150 billion has been designated for the MASGA project.