INTERNATIONAL
'Make America Shipbuilding Great Again' package key to reaching trade deal, South Korea says
A general view shows HD Hyundai Heavy Industries Ulsan Shipyard in Ulsan, South Korea. - REUTERS
SEOUL: South Korean Finance Minister Koo Yun-cheol said on Thursday that a shipbuilding partnership package dubbed "Make America Shipbuilding Great Again" was key to the agreement on tariffs between the U.S. and South Korea.
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The partnership worth about $150 billion will be led by South Korean shipbuilders to rebuild the U.S. shipbuilding industry, Koo said.
To seek better tariff terms, South Korean officials had sought to woo Trump with a shipbuilding tie-up including repairing the U.S. navy fleet, as Washington struggles to keep up with China's huge naval buildup.
"The most noteworthy aspect of today's agreement is the $150 billion South Korea-U.S. shipbuilding cooperation package, so-called MASGA, Make America Shipbuilding Great Again," Koo said.
"I think the MASGA project contributed most significantly to today's agreement," Koo told a briefing.
Koo and other ministers met U.S. President Donald Trump at the White House to cut a deal to lower tariffs on South Korean imports before an August 1 deadline set by Trump.
During their meeting, Trump said he wanted to see ships being built in the U.S. "as quickly as possible" under the partnership, Koo said.
The MASGA project includes the construction of new shipyards in the U.S., the training of shipbuilding personnel and U.S. Navy ship maintenance, South Korean government officials say.
Challenges remain for Korean investments in U.S. shipyards or building ships there, experts say, including, for example, difficulties obtaining parts such as steel plates.
South Korea's defence-to-shipbuilding conglomerate Hanwha Group has been expanding in U.S. shipbuilding. Its affiliates Hanwha Systems and Hanwha Ocean acquired Pennsylvania-based Philly Shipyard for $100 million last year.
Shares in shipbuilder Hanwha Ocean 042660.KS ended 13% higher on Thursday, following news of the tariff agreement, including the shipbuilding partnership.
But reflecting the impact of taking on the U.S. investment, Hanwha Systems, which owns a 60% stake in Philly Shipyard, reported this week a 60% fall in second-quarter operating profits due to costs from its acquisition of Philly Shipyard.
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AI Brief
- South Korea and the US agreed on a major shipbuilding initiative called MASGA to rebuild US shipyards.
- The deal aims to improve US naval capabilities and secure better tariff terms for South Korean imports.
- Hanwha Group leads the investment, but faces hurdles like high costs and sourcing shipbuilding materials.
The partnership worth about $150 billion will be led by South Korean shipbuilders to rebuild the U.S. shipbuilding industry, Koo said.
To seek better tariff terms, South Korean officials had sought to woo Trump with a shipbuilding tie-up including repairing the U.S. navy fleet, as Washington struggles to keep up with China's huge naval buildup.
"The most noteworthy aspect of today's agreement is the $150 billion South Korea-U.S. shipbuilding cooperation package, so-called MASGA, Make America Shipbuilding Great Again," Koo said.
"I think the MASGA project contributed most significantly to today's agreement," Koo told a briefing.
Koo and other ministers met U.S. President Donald Trump at the White House to cut a deal to lower tariffs on South Korean imports before an August 1 deadline set by Trump.
During their meeting, Trump said he wanted to see ships being built in the U.S. "as quickly as possible" under the partnership, Koo said.
The MASGA project includes the construction of new shipyards in the U.S., the training of shipbuilding personnel and U.S. Navy ship maintenance, South Korean government officials say.
Challenges remain for Korean investments in U.S. shipyards or building ships there, experts say, including, for example, difficulties obtaining parts such as steel plates.
South Korea's defence-to-shipbuilding conglomerate Hanwha Group has been expanding in U.S. shipbuilding. Its affiliates Hanwha Systems and Hanwha Ocean acquired Pennsylvania-based Philly Shipyard for $100 million last year.
Shares in shipbuilder Hanwha Ocean 042660.KS ended 13% higher on Thursday, following news of the tariff agreement, including the shipbuilding partnership.
But reflecting the impact of taking on the U.S. investment, Hanwha Systems, which owns a 60% stake in Philly Shipyard, reported this week a 60% fall in second-quarter operating profits due to costs from its acquisition of Philly Shipyard.