Geoje: The South Korean government is set to establish a consultative body involving various ministries to support a shipbuilding cooperation initiative with the United States, announced Industry Minister Kim Jung-kwan. This initiative aims to open up new opportunities for the Korean shipbuilding industry.
According to Yonhap News Agency, the announcement came during the naming ceremony of two liquefied natural gas (LNG) carriers built by Hanwha Ocean Co., a Korean shipbuilding giant. These vessels are to be delivered to the United States and are part of a larger effort to bolster the Make American Shipbuilding Great Again (MASGA) project. This project emerged from tariff negotiations between South Korea and the Trump administration, with South Korea committing to a $150 billion investment in MASGA and $200 billion in strategic industries such as semiconductors, batteries, and biotech.
Minister Kim emphasized the project's dual benefits, stating that it would assist in revitalizing the U.S. shipbuilding industry by investing in American shipyards, nurturing a skilled workforce, and rebuilding supply chains. Additionally, it provides Korean companies with new market entry opportunities. Hanwha Ocean's newly constructed LNG carriers are the first of five vessels intended for the U.S. LNG export market, with the total order valued at $1.2 billion in 2022.
The Ministry of Trade, Industry and Energy noted that this deal underscores the global competitiveness of Korean shipbuilders, who have produced over 70 percent of the world's LNG carriers. In the first half of this year, Korean firms captured all global orders for LNG carriers.
Following the LNG carrier naming ceremony, Minister Kim also engaged with Hanwha Ocean officials and the crew of the U.S. Navy's vessel Charles Drew at the Geoje shipyard. Hanwha Ocean is providing maintenance, repair, and overhaul (MRO) services for Charles Drew, marking the third U.S. naval vessel to undergo MRO at the Hanwha facility.
Kim highlighted the significance of the U.S. naval vessel MRO project as a foundational element of Korea-U.S. shipbuilding cooperation. He expressed hopes that, similar to previous projects, Charles Drew would benefit from the advanced capabilities of Korean shipbuilding. Notably, Hanwha secured its first MRO contract for the U.S. Navy's Wally Schirra in August last year and followed up with a deal for the Yukon in November.