Seoul: South Korea's offer to help revitalize the United States' shipbuilding industry was a key to reaching a tariff deal with the Donald Trump administration, Seoul's trade minister announced. The deal was reached with significant involvement from U.S. Secretary of Commerce Howard Lutnick, who played a crucial role in securing the last-minute agreement.

According to Yonhap News Agency, Trade Minister Yeo Han-koo emphasized the importance of the proposed investment fund for shipbuilding cooperation, calling it a "game changer" during a press briefing. This initiative, known as "Make American Shipbuilding Great Again (MASGA)," includes South Korea's commitment to invest US$150 billion in the U.S. shipbuilding sector, as part of a larger $350 billion investment package. This investment was a pivotal factor in the U.S. decision to reduce its tariff rate on South Korea from 25 percent to 15 percent.

Yeo highlighted that South Korea's focus on shipbuilding was strategic, as it was an area where South Korea could offer unique contributions that other trade partners like Japan and the European Union could not. Additionally, the investment package includes a $200 billion fund aimed at boosting advanced industries such as semiconductors, batteries, and biopharmaceuticals.

In support of the trade negotiations, high-profile Korean business leaders, including Hanwha Group Vice Chairman Kim Dong-kwan, Samsung Electronics Co. Chairman Lee Jae-yong, and Hyundai Motor Group Executive Chair Euisun Chung, traveled to Washington. Hanwha Group, with its subsidiary Hanwha Ocean Co., which acquired Philly Shipyard last year, is expected to play a significant role in the U.S. shipbuilding revitalization effort.

Yeo credited his negotiations with Howard Lutnick for creating the necessary momentum to finalize the tariff deal. He described Lutnick as a "deal maker" and recounted how Lutnick's outreach following the U.S.-Japan trade agreement accelerated the negotiation process. Their discussions included approximately 10 rounds of meetings in various locations, including Washington, New York, and Scotland, where Lutnick was engaged in broader trade negotiations with the European Union and China alongside President Trump.