Washington: South Korea and the United States have signed a memorandum of understanding (MOU) to enhance bilateral cooperation in the shipbuilding industry. This agreement is part of a broader commitment by Seoul to contribute to the revitalization of the U.S. shipbuilding sector in line with a bilateral trade agreement.
According to Yonhap News Agency, the MOU was signed by Park Jung-sung, deputy minister for trade at Seoul's Ministry of Trade, Industry and Resources, and U.S. Under Secretary of Commerce for International Trade William Kimmitt. The signing ceremony, held in Washington, was attended by Industry Minister Kim Jung-kwan and Commerce Secretary Howard Lutnick.
The MOU aligns with South Korea's pledge to invest $150 billion in the U.S. shipbuilding sector, as part of a previous agreement involving a total investment of $350 billion with an annual cap of $20 billion. The International Trade Administration stated that the MOU aims to strengthen allied industrial capacity, promote investment, and expand collaboration in advanced manufacturing sectors.
The agreement includes the establishment of the Korea-U.S. Shipbuilding Partnership Initiative (KUSPI), a platform designed to enhance cooperation in commercial shipbuilding, workforce development, industrial modernization, and maritime manufacturing investment. This initiative will leverage the Korea-U.S. Shipbuilding Partnership Center, which is anticipated to open in Washington later this year, facilitating collaboration between government entities, industry, and research institutions from both nations.
Specific activities under the partnership will focus on foreign direct investment in the U.S. maritime industrial base, workforce training, shipyard productivity improvements, and technical exchanges. The Commerce Department will oversee interactions with U.S. shipbuilding companies, suppliers, universities, and research institutes, serving as the main U.S. government contact for the center.
MOTIR will manage cooperation across the Korean government and shipbuilding stakeholders, providing necessary personnel and funding for the center.