Seoul: The South Korean government will establish a consultative body comprising relevant ministries to support the shipbuilding cooperation initiative with the United States, as announced by Industry Minister Kim Jung-kwan. This initiative, known as the Make American Shipbuilding Great Again (MASGA) project, is expected to open new avenues for the Korean shipbuilding industry.
According to Yonhap News Agency, Industry Minister Kim Jung-kwan revealed this plan at the naming ceremony of two liquefied natural gas (LNG) carriers set to be delivered to the U.S. by Korean shipbuilding giant Hanwha Ocean Co. The event was held at Hanwha's shipyard in Geoje, located about 330 kilometers southeast of Seoul. The Ministry of Trade, Industry and Energy emphasized the government's commitment to quickly forming the consultative body and maintaining close communication with the U.S. to achieve tangible outcomes.
MASGA emerged during South Korea's tariff negotiations with the Donald Trump administration, focusing on bilateral shipbuilding cooperation. Recently, South Korea committed to investing $150 billion in the MASGA project, along with an additional $200 billion for bilateral cooperation in strategic industries such as semiconductors, batteries, and biotech.
The project is seen as mutually beneficial, aiming to revitalize the U.S. shipbuilding industry by investing in American shipyards, fostering a skilled workforce, and rebuilding supply chains. Minister Kim noted that the initiative also offers Korean companies new market entry opportunities. Hanwha Ocean's LNG carriers, part of a $1.2 billion order from 2022, represent the first two of five vessels to be delivered to aid U.S. LNG exports.
The Ministry of Trade, Industry and Energy highlighted the global competitiveness of Korean shipbuilders, noting that over 70 percent of the 760 LNG carriers worldwide are Korean-built. In the first half of this year, Korean firms secured all global LNG carrier orders.
Following the ceremony, Minister Kim met with Hanwha Ocean officials and the crew of the U.S. Navy vessel Charles Drew, currently undergoing maintenance, repair, and overhaul (MRO) services at the Geoje shipyard. This marks the third U.S. naval vessel to receive MRO services at Hanwha's facility.
The minister emphasized the significance of the U.S. naval vessel MRO project as a cornerstone of Korea-U.S. shipbuilding cooperation. Hanwha's previous MRO contracts include deals for the U.S. Navy's logistics support ship Wally Schirra and the replenishment oiler Yukon.
During his visit, Minister Kim also announced upcoming government measures to support the restructuring of the struggling petrochemical industry, drawing parallels to the shipbuilding sector's recovery in the late 2010s.