Korean President Lee Jae Myung, center, alongside Pennsylvania Gov. Josh Shapiro, left, and Hanwha Group Vice Chairman Kim Dong-kwan, applauds during a visit to Hanwha Philly Shipyard, owned by Korean shipbuilder Hanwha Ocean, in Philadelphia, Aug. 26, 2025. Yonhap
Seoul’s industry ministry on Wednesday requested the U.S. state of Pennsylvania to review various measures to support Korean shipbuilding operations in the state, including tariff exemptions on shipbuilding materials, according to officials.
Park Dong-il, director general for industrial policy at the Ministry of Trade, Industry and Resources, made the call in a meeting with Rick Siger, Pennsylvania’s secretary of economic development, in Seoul.
Pennsylvania is home to Philly Shipyard, acquired by Korean shipbuilder Hanwha Ocean in 2024, located in Philadelphia.
Wednesday’s meeting came as Korea and the United States is seeking to expand bilateral cooperation in the shipbuilding sector under the two countries’ trade deal finalized late last year.
Under the deal, Seoul pledged to invest $150 billion for the “Make American Shipbuilding Great Again” (MASGA) initiative in return for tariff cuts.
Park told Siger that Korean shipbuilding companies are reviewing various business projects for the MASGA initiative, including the expansion of production capacity, talent education and the strengthening of supply chains, according to the ministry.
For instance, Hanwha Ocean plans to sharply expand its annual production capacity at the Philly Shipyard to 10 ships from the current level of 1.5.
To help such efforts bear fruit, Park said the streamlining of administrative procedures for facility expansion and the establishment of necessary infrastructure is necessary while calling for the designation of the Philly area as a Maritime Prosperity Zone (MPZ) under Washington’s maritime action plan announced in February, the ministry said.
With the designation as an MPZ, companies in the area can receive tax incentives and other benefits for investment in shipbuilding and related industrial infrastructure.
Park also asked for a review into possible tariff exemptions for shipbuilding materials, such as steel and components, exported to the U.S. from Korea to build vessels there, the ministry added.
The ministry said it will continue close consultations with the U.S. side to create a favorable environment for Korean companies investing in the U.S., and to make the MASGA project produce a win-win outcome for both Seoul and Washington.