HD Hyundai announces joint multibillion-dollar U.S. shipbuilding investment program
Published: 26 Aug. 2025, 16:37
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- KIM JU-YEON
- [email protected]
Audio report: written by reporters, read by AI
![From left: Kim Jung-kwan, Korea’s minister of trade, industry and energy; Kim Bock-kyu, vice chairman and chief operating officer of Korea Development Bank (KDB); Frank Bruno, CEO of Cerberus Capital; Chung Ki-sun, executive vice chairman of HD Hyundai; and Howard Lutnick, U.S. secretary of commerce pose for a photo after HD Hyundai signed a memorandum of understanding with Cerberus Capital and the KDB to establish a Korea-U.S. joint maritime investment program at the InterContinental The Willard in Washington on Aug. 25. [HD HYUNDAI]](https://koreajoongangdaily.joins.com/data/photo/2025/08/26/3a8b3baa-8fb1-4550-84cc-55b904ea3962.jpg)
From left: Kim Jung-kwan, Korea’s minister of trade, industry and energy; Kim Bock-kyu, vice chairman and chief operating officer of Korea Development Bank (KDB); Frank Bruno, CEO of Cerberus Capital; Chung Ki-sun, executive vice chairman of HD Hyundai; and Howard Lutnick, U.S. secretary of commerce pose for a photo after HD Hyundai signed a memorandum of understanding with Cerberus Capital and the KDB to establish a Korea-U.S. joint maritime investment program at the InterContinental The Willard in Washington on Aug. 25. [HD HYUNDAI]
HD Hyundai on Tuesday announced its first major investment in a Korea-U.S. initiative aimed at revitalizing U.S. shipbuilding that comes as part of Seoul's broader trade pact with Washington.
The Korean shipbuilding giant said it would commit an undisclosed amount through a joint “multibillion-dollar investment program” with U.S. private equity firm Cerberus Capital and the state-run Korea Development Bank (KDB).
The three entities signed a memorandum of understanding (MOU) to establish the program on Monday in a ceremony at the InterContinental The Willard in Washington, presided over by company executives, Minister of Trade, Industry and Energy Kim Jung-kwan and U.S. Secretary of Commerce Howard Lutnick.
The program aims to revitalize and enhance the maritime capabilities of the United States and allied nations, covering U.S. shipbuilding, maritime infrastructure and advanced marine technologies, according to HD Hyundai.
The firms will prioritize investment in three areas: U.S. shipyard acquisition and modernization, supply chain reinforcement through equipment and component suppliers and advanced shipbuilding technology development, including autonomous navigation and AI.
![A ship is built at HD Hyundai Heavy Industries' shipyard in Ulsan in this photo provided by the firm on Dec. 29, 2023. [HD HYUNDAI HEAVY INDUSTRIES]](https://koreajoongangdaily.joins.com/data/photo/2025/08/26/5f6ecb90-1a36-4e6a-ba2b-259f8d2d64e0.jpg)
A ship is built at HD Hyundai Heavy Industries' shipyard in Ulsan in this photo provided by the firm on Dec. 29, 2023. [HD HYUNDAI HEAVY INDUSTRIES]
HD Hyundai will serve as the program's anchor investor and technical and industrial adviser. The heavy industry conglomerate, with affiliates in the shipbuilding, heavy equipment, machinery and petroleum industries, says it will leverage its maritime expertise to evaluate the technological feasibility, competitiveness and growth potential of investment targets.
HD Hyundai has signed partnerships with U.S. shipyards including Edison Chouest Offshore and Huntington Ingalls Industries just this year, while also entering government-backed initiatives as part of its strategic efforts to win U.S. shipbuilding and maintenance contracts. The firm secured a contract to conduct maintenance, repair and overhaul of the USNS Alan Shepard of the U.S. Navy’s 7th Fleet, a 41,000-ton dry cargo and ammunition ship, earlier this month.
“Leveraging our proven expertise and digital capabilities, HD Hyundai will support the modernization of U.S. shipbuilding and work with both nations to shape a new chapter in the global shipbuilding industry,” said Chung Ki-sun, executive vice chairman of HD Hyundai, at the ceremony.
Cerberus will act as the program’s management company, overseeing overall investment strategy and operations, while the KDB will support Korean investors, according to HD Hyundai.
“We believe our strategy can play an important role by bringing investments alongside operational and technical capabilities to high-impact opportunities,” Cerebrus CEO Frank Bruno said, calling the program a “historic commitment to revitalizing the U.S. maritime sector.”
![President Lee Jae Myung speaks with U.S. President Donald Trump at the White House in Washington on Aug. 25. [JOINT PRESS CORPS]](https://koreajoongangdaily.joins.com/data/photo/2025/08/26/94fa087e-a987-47c2-9ac0-98cf0f0423a3.jpg)
President Lee Jae Myung speaks with U.S. President Donald Trump at the White House in Washington on Aug. 25. [JOINT PRESS CORPS]
The MOU follows Korea's pledge to inject $150 billion into the U.S. shipbuilding sector as part of a $350 billion investment package proposed in a trade deal with Washington in July.
The shipbuilding initiative, dubbed by the Korean government as MASGA, short for “Make American Shipbuilding Great Again,” was one of Seoul's key negotiation cards in lowering tariffs levied on Korean imports.
President Lee Jae Myung reiterated Korea's promise to facilitate a “renaissance” in the U.S. shipbuilding industry at a summit with U.S. President Donald Trump on Monday. Trump's administration has vowed to revitalize the sector in the United States to match that of China, which dominates the commercial shipbuilding market and operates the largest navy by fleet size.
HD Hyundai Executive Vice Chairman Chung said the program launched Monday will not only help MASGA, “but also create new markets and growth opportunities for Korean shipbuilders.”
“This investment program is a visionary model of cooperation in the shipbuilding industry, and a manifestation of the enduring trust and partnership between Korea and the United States,” KDB Vice Chairman Kim Bock-kyu said.
“The KDB, as a representative of the Korean financial industry, is proud to play a central role in supporting this program to ensure its success,” Kim added.
BY KIM JU-YEON [[email protected]]
with the Korea JoongAng Daily
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