A ship under construction at graving dock at Philly Shipyard in Philadelphia. Philly Shipyard Photo

In a move straight out of the industrial playbook America shelved decades ago, South Korean defense giant Hanwha is dumping $5 billion into its newly acquired shipyard in Philadelphia—aiming to resurrect U.S. shipbuilding one dry dock at a time.

The plan: double the size of the Hanwha Philly Shipyard, formerly Philly Shipyard Inc., and turn it into a 21st-century warship factory. That means more docks, more piers, and a block assembly facility that could supercharge output from under two ships per year to as many as 20. The target? LNG carriers, naval modules, and eventually, full-blown Navy ships.

“We gave up the shipbuilding industry foolishly, many years ago,” said President Donald Trump after a White House meeting with South Korean President Lee Jae Myung. “But we’re going to start it up again.”

Hanwha’s cash infusion is the first visible move in a $150 billion investment pledge from Seoul aimed at bolstering U.S. shipyards and fulfilling a bilateral trade agreement inked earlier this year. The $5 billion earmark for Philly is the opening salvo. Just last year, Hanwha scooped up the yard for $100 million—chump change compared to what’s coming.

From Rust to Rivets

At a ceremony Tuesday for the christening of MARAD’s third National Security Multi-Mission Vessel—destined for U.S. maritime training—Hanwha Vice Chairman Dong Kwan Kim laid it out plainly: “We’re reindustrializing for shared security and prosperity.”

Translation: the U.S. Navy’s been outgunned, outbuilt, and outpaced by China’s shipyards. Hanwha wants in on the fix.

The Pentagon’s own analysts have flagged a crisis in U.S. shipbuilding. Backlogs, delays, cost overruns—it’s a perfect storm. Hanwha CEO David Kim didn’t mince words: “Every Navy project is one to three years late, over budget, and falling behind China.”

So now, with Congress and the Navy both desperate for capacity, Hanwha is sliding into the breach. Deals are already being discussed, with Navy contracts on the horizon.

Not Just in Philly

Meanwhile, another Korean heavyweight—Samsung Heavy Industries—announced it’s joining forces with Vigor Marine Group in the Pacific Northwest. The pair will start handling overseas maintenance for U.S. Navy and Military Sealift Command vessels, expanding forward-deployed repair options in the Indo-Pacific.

Earlier this year, Hanwha Ocean (a Hanwha affiliate) successfully repaired the USNS Wally Schirra at its Geoje shipyard in South Korea as part of a Navy pilot program. More are expected.

Reviving the Jones Act Fleet

Hanwha’s Philadelphia expansion will also support its own U.S. shipping arm. The shipyard plans to build 10 medium-range oil and chemical tankers for Hanwha Shipping’s American subsidiary, with the first expected by 2029. These vessels will comply with the Jones Act, which mandates U.S.-built, U.S.-flagged, U.S.-crewed ships for domestic trade.

The Bigger Picture

Hanwha isn’t just building ships—it’s building a new kind of yard: smart, digital, and heavily automated. If successful, the transformation will mark a return to American shipbuilding on terms few imagined even five years ago.

This isn’t charity. It’s strategy. And the stakes are high.

As the Navy looks down the barrel of a shrinking fleet and an expanding Pacific threat, help is arriving—not from Capitol Hill or Norfolk—but from across the Pacific.