South Korean shipbuilder HD Hyundai has formalized a partnership with private equity firm Cerberus Capital Management to establish a U.S.-focused maritime investment vehicle, as part of Seoul’s broader $150 billion commitment to revitalize American shipbuilding capacity.
The memorandum signed August 25 at a Washington ceremony creates “Cerberus Maritime,” with HD Hyundai serving as anchor investor and technical partner while Cerberus manages the overall strategy. Korea Development Bank will coordinate Korean investor participation in what officials describe as supporting the Trump administration’s maritime reindustrialization goals.
The initiative stems from the “Make American Shipbuilding Great Again” program that helped South Korea secure a 15% tariff rate instead of the initially threatened 25% levy. The MASGA project, borrowing from Trump’s campaign slogan, emerged during trade negotiations as Seoul sought to avoid punitive measures on its exports.
HD Hyundai’s involvement extends beyond financial backing. The conglomerate will evaluate investment targets’ technological feasibility and competitiveness while exploring collaboration opportunities at U.S. shipyards and ports. Investment priorities include acquiring and modernizing American shipyards, strengthening supply chains, and developing autonomous navigation and artificial intelligence capabilities.
The U.S. shipbuilding sector has struggled with aging infrastructure, skilled labor shortages, and lengthy construction timelines that stretch naval projects into decades. American shipbuilders hold merely 0.1% of the global commercial market while South Korea ranks as the world’s second-largest shipbuilding nation.
The partnership builds on existing Korean shipbuilding investments in America. Hanwha acquired Philadelphia’s shipyard for $100 million last year, while HD Hyundai has secured maintenance contracts for U.S. Navy vessels.
Cerberus brings experience from its 2022 acquisition of the Subic Bay shipyard in Southeast Asia, which it has transformed into a multi-use facility where HD Hyundai now operates.
The announcement coincides with diplomatic meetings between South Korean President Lee Jae-myung and President Trump, where modernizing the bilateral alliance featured prominently on the agenda.
