Washington: President Lee Jae Myung and U.S. President Donald Trump convened at the White House on Monday to discuss enhancing economic collaboration in the shipbuilding sector and other manufacturing industries. This meeting marks a step forward in integrating economic, technology, and science dimensions into the traditionally security-focused alliance between the two nations.
According to Yonhap News Agency, the summit follows a trade agreement reached in late July that reduced U.S. tariffs on Korean goods from 25 percent to 15 percent. In exchange, South Korea committed to a $350 billion investment package, including $100 billion in U.S. energy purchases. Of this, $150 billion is designated for shipbuilding under the "Make American Shipbuilding Great Again" (MASGA) initiative.
The U.S. plans to purchase ships from South Korea and collaborate to rejuvenate its shipbuilding industry, which has been in decline. President Trump emphasized the importance of this partnership, stating, "We're going to be buying ships from South Korea. We're also going to have them build ships here with our people, using our people, and we're going to go back into the shipbuilding business again."
The MASGA project will involve constructing new U.S. shipyards, training shipbuilding personnel, and carrying out maintenance, repair, and operations of U.S. Navy vessels with participation from South Korean companies. This initiative aligns with Trump's goal to bolster U.S. shipbuilding capabilities to better compete with China.
On Tuesday, President Lee will visit Hanwha Philly Shipyard in Philadelphia, highlighting the ongoing bilateral cooperation. This shipyard was acquired by the Korean shipbuilder Hanwha Ocean last year.
In addition to shipbuilding, Trump discussed ongoing negotiations with South Korea on a joint energy project in Alaska and potential sales of U.S. military equipment to South Korea, including B-2 bombers. He mentioned the strategic advantage of U.S. oil resources in these discussions, stating, "You need oil, and we have it. So we have a big advantage in that way."