The proposed U.S.-ROK partnership for the new Next Generation Logistics Ship (NGLS) program could mark a strategic shift in expanding U.S. naval presence in the Indo-Pacific. Facing challenges in shipbuilding capacity, the U.S. may benefit from collaborating with South Korea not only for developing logistics ships, but for hosting more advanced platforms. South Korea’s defense industry is well-positioned to support this evolution, indicating deeper technological and military integration between the two nations.
Background
On October 26, U.S. defense contractor Huntington Ingalls Industries (HII) and South Korea’s HD Hyundai Heavy Industries (HD HHI) signed a memorandum of agreement (MOA) during the Asia-Pacific Economic Cooperation 2025 summit, aiming to strengthen shipbuilding collaboration between the U.S. and the Republic of Korea (ROK). The MOA is intended to build on previous collaborations between HII and HD HHI, focusing on four key areas: strengthening the U.S. shipbuilding industrial base, pursuing strategic opportunities for Navy shipbuilding programs, collaborating on research and development in artificial intelligence and machine learning, and enhancing the Navy’s Indo-Pacific ship lifecycle support.
Earlier in October, the two companies announced they will collaborate on the Navy’s NGLS design. While the U.S. has worked with U.S.-based subsidiaries of foreign defense companies in the past, this would be the first time it has partnered directly with a foreign company to develop a Navy vessel. The joint program will build on the pre-existing projects between HD HHI and HII, such as their memorandum of understanding to share best practices and shorten construction schedules to increase the efficiency of the U.S. shipbuilding industry.
U.S. Navy’s Next Generation Logistics Ship Program
The Navy announced a request for proposals in August 2025 for the NGLS program. The request classifies the NGLS as a new class of ships intended to expand the Navy’s Combat Logistics Force (CLF) ships. The form stated that the NGLS should be smaller than existing ships in the CLF and support refueling, rearming, and resupply of Navy and Marine Corps assets. It also stated that the ship will operate in both contested and non-contested environments.
U.S. Struggles in Shipbuilding Efficiency
The U.S. Navy is facing pressure to expand its fleet, particularly in the Indo-Pacific region, where strategic competition with China continues to intensify. While the U.S. currently maintains more than 200 ships in the area, China’s fleet is rapidly growing, with reports in 2024 noting 152 Chinese vessels operating in the region on a single day and an estimated total fleet size nearing 370 ships. This imbalance underscores the urgent need for the U.S. to accelerate ship production and deployment.
However, the U.S. shipbuilding industry is struggling to meet demand. In April 2025, the Government Accountability Office released a report highlighting significant inefficiencies between the Navy’s goals and the capabilities of defense companies. Some shipbuilding programs are experiencing delays of up to three years, largely due to a lack of physical infrastructure and an insufficient workforce to support the volume of ships required. These challenges not only hinder the Navy’s ability to maintain a competitive presence but also raise concerns about long-term readiness and strategic deterrence. As global threats evolve, the U.S. must find innovative solutions, including international partnerships, to overcome these production bottlenecks and reinforce its naval strength.
ROK Shipbuilding Capabilities
On September 17, HD HHI introduced the next-generation Aegis destroyer, Dasan Jeong Yak-yong, which is planned to join the ROK Navy in 2026. Measuring 185 yards (170 meters) in length and 22 yards (21 meters) in width, the vessel displaces 8,200 tons and reaches speeds up to 30 knots. It features the advanced Aegis Combat System, a domestically integrated sonar suite, and interceptor capabilities.
In November 2024, HD HHI delivered the first-in-class ship, Jeongjo the Great, to the ROK Navy. The final destroyer in the KDX-III Batch-II series is expected to be delivered by the end of 2027. HD HHI integrated the U.S.-developed Aegis Combat System with South Korea’s own technologies, including the KVLS-II vertical launch system, ballistic missile interceptors, and long-range strike capabilities. The class is equipped with MH-60R Seahawk helicopters and powered by four gas turbines alongside a Hybrid Electric Drive system.
Obstacles to Utilizing Foreign Shipyards
U.S. defense policymakers have consistently opposed the construction of military vessels in foreign shipyards, maintaining a longstanding commitment to domestic production. In September 2025, the House Defense Department appropriations bill for fiscal year 2026 allocated approximately $36.9 billion for shipbuilding, explicitly prohibiting the use of these funds for constructing Navy ships in other countries. This aligns with the longstanding decision on the Tollefson-Byrnes Amendment, which prohibits overseas construction of U.S. military ships. Although in the decision, the president retains the authority to authorize exceptions to this prohibition if deemed necessary for national security, the 2026 bill does not include such exceptions, effectively eliminating any possibility of foreign construction during the upcoming fiscal year.
To improve efficiency and address capacity challenges in U.S. shipyards, the United States and South Korea have expanded cooperation in naval maintenance, repair, and overhaul (MRO). In July 2024, the U.S. Navy granted Master Ship Repair Agreement (MSRA) certifications to HD HHI and Hanwha Ocean, allowing them to bid on Navy maintenance projects for five years. Hanwha Ocean later became the first Korean yard to complete a major U.S. Navy MRO project with the USNS Wally Schirra in March 2025 and has since secured a follow-on contract for the USNS Yukon.
Additionally, Korean shipbuilders are increasingly expanding into the United States. In August 2025, Samsung Heavy Industries partnered with Vigor Marine Group to pursue naval MRO projects, shipyard automation, and new ship construction in the Pacific Northwest. Meanwhile, HD HHI is collaborating with Cerberus Capital Management on American shipyard modernization and the introduction of advanced technologies, including autonomous navigation. Hanwha Ocean has also committed $5 billion to enhance infrastructure, workforce, and production capacity at Pennsylvania’s Philly Shipyard, which it acquired in 2024.
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The proposed U.S-ROK partnership for the NGLS program could indicate a pivot in U.S. naval development by addressing the production and workforce shortages that constrain domestic shipbuilding. If expanded, it could inspire future partnerships in which South Korean shipyards manufacture and base vessels in the region, leveraging their industrial strength to accelerate construction and enhance regional capacity. This would support allied defense manufacturing as a means of sustaining maritime presence and production resilience in the Indo-Pacific.
Historically, the U.S. has avoided partnering with foreign nations on vessel development, making recent proposals for collaboration a distinct shift in defense building. Expanding MRO partnerships remains the accepted short-term solution to domestic shipyard inefficiencies. However, in the coming years, growing Indo-Pacific threats may prompt a reassessment of international involvement. The outcome of the NGLS program could prove decisive in determining whether such a change occurs.
South Korea’s defense industry is well-equipped to support this evolution. Companies such as HD HHI and Hanwha Ocean have showcased their technical expertise through projects like Aegis-equipped destroyers, which combine U.S. combat systems with South Korean engineering, as well as domestically developed diesel-electric submarines. These achievements highlight South Korea’s capacity to produce high-performance warships that meet modern operational standards, further strengthening South Korea’s position as a reliable partner in U.S. naval innovation.
Beyond shipbuilding, basing and maintaining vessels in South Korea would provide significant operational benefits by improving logistics and readiness across the Indo-Pacific. It would also reinforce the U.S.–ROK alliance through shared investment in regional stability and technological advancement. While a full-scale destroyer co-development program may take years to accept, the NGLS initiative offers a practical starting point for advancing joint naval innovation and expanding opportunities for allied presence in the Indo-Pacific.
Lauren Estrada has a background in global and cyber intelligence, with a strong interest in communicating technical threats to non-technical audiences. She currently works as an Editor & Analyst with Forecast International and Military Periscope, where she contributes to research and analysis on defense technologies. Her previous experience includes defense technology research, regional risk assessments, client-facing intelligence reports, trend analysis, threat of actor behavior, and cyber-focused research.
While pursuing her B.S. in Global Security and Intelligence Studies at Embry-Riddle Aeronautical University Prescott, Lauren co-led a cross-disciplinary initiative to introduce cybersecurity fundamentals to students across all majors. Her team designed and proposed a course that bridged cybersecurity and non-technical disciplines, fostering inclusive engagement with cyber skills. This work led to speaking engagements at university industry board meetings and the 2025 National Conference on Undergraduate Research in Pittsburgh, PA.
