The Pentagon is exploring the possibility of outsourcing the design and construction of warships to South Korea and Japan, according to reports citing a proposed US$1.85 billion feasibility study included in the 2027 budget. The study aims to assess the potential for adopting or co-producing advanced frigate hulls, such as Japan’s Mogami class and South Korea’s Daegu class, to alleviate pressure on the US Navy’s domestic shipbuilding capacity.

If approved, this initiative would mark the first time since World War II that the United States has purchased a major surface combatant from a foreign partner. The move reflects growing concerns within the US defense establishment over persistent delays, workforce shortages, and budget overruns afflicting American shipyards. It also addresses a strategic imperative to close the widening gap in shipbuilding output with China, which is currently producing six to 10 destroyers annually—several times the US rate.

The Japanese Mogami-class frigate features a stealthy 5,500-tonne hull with extensive automation, while the smaller South Korean Daegu-class displaces about 3,600 tonnes and incorporates a quiet propulsion system. Both classes are outfitted with US-standard systems, including the MK-41 vertical missile launcher. The Mogami-class vessel can be built by Mitsubishi in approximately two years at a cost of around US$500 million, substantially faster and less expensive than the US Constellation-class frigate, whose costs exceed US$1 billion per unit and which is years behind schedule.

Australia has also placed orders for 11 upgraded Mogami-class ships valued at roughly US$14.4 billion, with initial vessels constructed in Japan and subsequent units assembled in Australia. The first delivery is expected by 2029.

Russ Vought, director of the White House Office of Management and Budget, underscored the urgency for additional frigates at a recent Navy League symposium, stating, “If we cannot get the ships we need from traditional sources at cost and on time, we will get them from other shipyards.” Former Navy Secretary John Phenal, who was reportedly instructed to examine the possibility of acquiring South Korean and Japanese combat ships shortly before his dismissal, noted the Navy’s direction to explore this option.

The feasibility study reportedly includes consideration of incorporating foreign designs and potentially conducting some construction work at overseas shipyards, according to sources familiar with the matter. The proposal reflects ongoing efforts to bolster the US Navy’s fleet while addressing the challenges inherent in its current procurement process.