![Defense Acquisition Program Administration Commissioner Suk Jong-geon answers questions during a National Assembly defense committee audit on Oct. 17, 2025. [Photo=Yonhap]](https://image.ajunews.com/content/image/2025/10/17/20251017161004714641.jpg)
SEOUL, October 17 (AJP) - South Korea’s top defense procurement official warned on Friday that recent Chinese sanctions against Hanwha Ocean’s U.S. subsidiaries could eventually hinder a joint shipbuilding initiative between Seoul and Washington.
During a parliamentary audit session, Suk Jong-geon, commissioner of the Defense Acquisition Program Administration, said the Chinese sanctions could affect the Make American Shipbuilding Great Again (MASGA) project, an effort to bolster collaboration between the two allies’ naval industries.
“The impact may not be immediate, but there is a potential for future disruption,” Suk told lawmakers in response to a question from Rep. Yoo Yong-won of the main opposition People Power Party.
Earlier this week, China’s Ministry of Commerce announced a ban on transactions with five subsidiaries of Hanwha Ocean, including Hanwha Philadelphia Shipyard and Hanwha Shipping. The South Korean conglomerate is a key participant in MASGA, a project that gained visibility when President Lee Jae Myung visited the Philadelphia shipyard during his U.S. trip in August.
Suk said that while no contracts have yet been signed under MASGA, the sanctions could complicate the procurement of specialized shipbuilding equipment from outside the United States. He added that his agency had not yet conducted a detailed assessment of possible financial losses. Rep. Yoo estimated that the sanctions could lead to losses of up to $60 million.
The lawmaker also called for the swift conclusion of the Reciprocal Defense Procurement Agreement (RDP-A), which would allow South Korean firms to participate directly in U.S. government defense contracts.
Suk confirmed that the agreement is awaiting approval from the White House National Security Council and emphasized that it is critical to the success of the MASGA initiative.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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