Seoul: South Korea's policy lenders and prominent shipbuilders signed a memorandum of understanding (MOU) on Thursday to implement the Seoul-Washington shipbuilding cooperation initiative, valued at US$150 billion, according to officials.

According to Yonhap News Agency, the MOU involves the Korea-U.S. Strategic Investment Corp., the Export-Import Bank of Korea, the Korea Development Bank, the Korea Trade Insurance Corp., and the Korea Ocean Business Corp. These entities are collaborating with major shipbuilders HD Hyundai Heavy Industries Co., Samsung Heavy Industries Co., and Hanwha Ocean Co.

The agreement aims to establish a consultative body for Korea-U.S. shipbuilding collaboration. This body will focus on sharing information among participants, identifying business opportunities, and facilitating policy financing support. This initiative is part of South Korea's pledge to invest $150 billion in the U.S. shipbuilding sector, following a trade deal from the previous year that committed South Korea to a total investment of $350 billion in the U.S., with an annual limit of $20 billion.

Finance Minister Koo Yun-cheol highlighted that the shipbuilding cooperation is a key component of the Korea-U.S. strategic investment. He expressed optimism that this investment would benefit both nations by securing new orders and expanding markets across the shipbuilding ecosystem, from large shipyards to small and medium-sized companies and equipment suppliers.