Pentagon weighs $1.85 billion plan to build US Navy warships in South Korea and Japan

The Pentagon is considering a $1.85 billion proposal to construct key parts of US Navy warships in South Korean and Japanese shipyards, a potential break from long-standing policy that would help accelerate fleet growth as China rapidly expands its maritime forces.

The funding request forms part of a broader $350 billion Pentagon reconciliation package. Under the plan, allied yards would handle hull construction, including basic structure, machinery and electrical systems, while US contractors would complete weapons and combat system integration on American soil. The approach mirrors the US Coast Guard's icebreaker program, in which initial vessels are built in Finland before final work in a Louisiana shipyard.

South Korean and Japanese shipbuilders stand out for their ability to deliver advanced warships more quickly and at lower cost than US facilities, creating both savings and greater competition in the sector. Leading candidates include South Korea's HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries, along with Japan's Mitsubishi Heavy Industries, Kawasaki Heavy Industries and Japan Marine United.

Japan's Mogami-class frigate can reportedly be delivered in roughly two years for about $500 million. The design features a low radar cross-section hull, high automation that supports a crew of around 90, and compatibility with the US Mk 41 Vertical Launching System. South Korea's Daegu-class frigate offers different strengths, including a hybrid propulsion system that reduces acoustic signature and advanced towed-array sonar for improved anti-submarine warfare.

The proposal arrives as the US naval shipbuilding industry grapples with persistent problems. The Constellation-class guided-missile frigate program, derived from an Italian design, has encountered multi-year delays and higher-than-expected costs stemming from modifications for US survivability standards and ongoing labor shortages. Hanwha Ocean's acquisition of Philadelphia Shipyard is viewed in Washington as another element of this growing industrial alignment, offering a pathway to modernize US shipbuilding capacity.

Senior officials have stressed that the initiative is a one-off measure rather than a permanent shift of warship production overseas. The aim is to strengthen overall US capacity by encouraging foreign partners to invest in American yards.

Analysts note, however, that adapting any foreign design to stringent US requirements for survivability, system redundancy and damage resistance could still trigger delays similar to those seen in earlier programs.

The strategic context is unmistakable. Additional hulls would allow the US Navy to maintain a stronger presence in contested Indo-Pacific waters at a time when China's naval buildup continues at pace. Closer production ties with Japan and South Korea would also align supply chains, combat systems and operational practices among key allies, adding strategic depth.

For Taiwan and other regional partners monitoring shifts in naval power, the outcome of the Pentagon's deliberations carries significance well beyond shipyard boardrooms in Ulsan or Nagasaki.

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