U.S. House Appropriations subcommittee officials visited S. Korean shipyards in July: sources

Lead

Eight officials from the U.S. House Appropriations Subcommittee on Defense visited major shipyards in South Korea earlier this month to inspect their capabilities for building warships, according to industry and government sources. The trip, which took place on July 10–11, included tours of facilities operated by Hanwha Ocean Co. and HD Hyundai Heavy Industries Co., and signals growing cooperation between the two countries in the shipbuilding sector.

Coverage Comparison

The visit was reported by Yonhap News Agency, which cited multiple sources familiar with the matter. The reports provide a consistent account of the delegation’s itinerary and the vessels inspected. A separate Yonhap report published on August 4 added context about the White House’s legislative priorities and the ongoing debate over U.S. restrictions on foreign shipbuilding.

Key Claims

• Eight officials from the U.S. House Appropriations Subcommittee on Defense visited South Korean shipyards on July 10–11, according to industry and government sources cited by Yonhap News Agency.
• The delegation toured Hanwha Ocean Co.’s shipyard in Geoje on July 11 and HD Hyundai Heavy Industries Co.’s shipyard in Ulsan a day earlier, sources told Yonhap. The officials also visited Samsung Heavy Industries Co.’s shipyard in Geoje, though the date was not disclosed.
• At the Hanwha plant, the officials were briefed on and observed a 3,600-ton Ulsan-class Chungnam frigate and a 3,600-ton Jang Bogo submarine, Yonhap reported.
• At HD Hyundai’s plant, they inspected an 8,200-ton Aegis-equipped Daeho Kim Jong Seo destroyer and an offshore patrol vessel destined for the Philippine Navy, according to Yonhap.
• An industry official told Yonhap that the visit suggests South Korea-U.S. cooperation in the shipbuilding sector “has begun to take shape,” noting the role of the House Appropriations Defense Subcommittee in reviewing the U.S. defense budget.
• The officials expressed interest in each company’s shipbuilding capabilities and their plans to invest in the United States, Yonhap reported.
• The U.S. Byrnes-Tollefson Amendment bans foreign construction of U.S. military vessels, which has been cited as a main obstacle to implementing a summit agreement on shipbuilding cooperation between the two countries’ leaders, Yonhap reported.
• The U.S. House Appropriations Committee passed a revised Defense Appropriation bill for fiscal year 2027, according to Yonhap.
• The White House’s Office of Management and Budget (OMB) highlighted a priority legislative proposal that would authorize the U.S. Navy to contract for the construction of two surface combatant vessels and two non-combat auxiliary vessels in foreign shipyards, Yonhap reported on August 4, citing a policy statement sent to the House on July 21.
• The OMB opposed a section of the House bill that would prohibit the use of defense funds for procuring “battle force” ships built in foreign shipyards, stating that the prohibition is “inconsistent with the administration’s priority legislative proposal,” Yonhap reported.
• The OMB also said the prohibition fails to address challenges posed by current shipbuilding “backlogs” in the U.S., per Yonhap.
• South Korea and the United States have been stepping up cooperation to revitalize America’s shipbuilding industry, Yonhap reported. Seoul has pledged to invest $150 billion in shipbuilding cooperation with the U.S. as part of a broader $350 billion investment commitment under last year’s trade and investment agreement.
• The OMB mentioned the “Finland Model,” an approach under which the U.S. would initially acquire vessels from allied foreign shipyards before transferring production to the U.S., Yonhap reported.

Perspectives

The visit is seen by an industry official as a sign that bilateral shipbuilding cooperation is taking shape, with the U.S. Congress exploring ways to expand on an agreement reached between President Donald Trump and South Korean leaders after their summit in October last year, Yonhap reported.

However, the Byrnes-Tollefson Amendment — a long-standing U.S. law banning foreign construction of American military vessels — has been cited as a main obstacle to implementing the summit agreement, according to Yonhap.

The White House has signaled its intent to overcome that barrier. The OMB’s policy statement, as reported by Yonhap, characterizes a House provision prohibiting foreign-built ships as inconsistent with the administration’s priority to authorize foreign shipbuilding as a means to drive investment into U.S. shipyards.