▲ Seok Jong-gun, minister of the Defense Acquisition Program Administration, attends a parliamentary audit session on Oct. 17, 2025. (Yonhap)

DAPA chief-China sanctions

DAPA chief says China's Hanwha sanctions to 'clearly' affect MASGA project

SEOUL, Oct. 17 (Yonhap) -- China's recent sanctions against five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean Co. will "clearly" have an impact on a landmark South Korea-U.S. shipbuilding cooperative project, the chief of Seoul's arms procurement agency said Friday.

On Tuesday, Beijing announced it would impose retaliatory measures against the five U.S.-based subsidiaries, accusing them of cooperating with a U.S. investigation targeting China's maritime and shipbuilding industries.

"Ultimately, it could have an impact on the Make American Shipbuilding Great Again (MASGA) initiative," Seok Jong-gun, minister of the Defense Acquisition Program Administration (DAPA), said during a parliamentary audit session.

"While no immediate impact is expected as there are no MASGA-related contracts that have been inked, it is assessed there will clearly be an influence given issues regarding material," Seok said, in response to an analysis suggesting the scope of damage could reach up to US$60 million over the next two years.

The DAPA chief did not specify the amount of potential damage, saying it has not been analyzed.

Hanwha has been at the forefront of efforts by Seoul and Washington to deepen shipbuilding cooperation as the Trump administration seeks to revitalize America's shipbuilding industry at a time when China is believed to have more than 230 times the shipbuilding capacity of the United States.

The latest measures announced by Beijing include prohibiting Chinese individuals and organizations from engaging in transactions or cooperation with the U.S. units of Hanwha.

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