South Korea’s $150 billion shipbuilding pledge is increasingly likely to give Korean companies access to the U.S. naval market through investment in American yards, but the emerging model will also require them to commit capital, technology and expertise before the commercial value of that access is clear.
On Aug. 11, Australian shipbuilder Austal disclosedthat Hanwha Defense USA had made an indicative, nonbinding offer worth $1.05 billion to $1.2 billion for Austal USA, subject to due diligence and regulatory approvals including reviews by the Committee on Foreign Investment in the United States (CFIUS) and the Defense Counterintelligence and Security Agency