Washington: South Korea and the United States have inaugurated a shipbuilding cooperation center in Washington to support a US$150 billion investment in the U.S. shipbuilding sector. This move follows South Korea's commitment under last year's bilateral trade and investment agreement aimed at revitalizing America's shipbuilding industry through the "Make American Shipbuilding Great Again (MASGA)" initiative.
According to Yonhap News Agency, the Korea-U.S. Shipbuilding Partnership Center (KUSPC) was officially opened in a ceremony attended by senior officials and industry leaders from both countries. The center marks a significant step in advancing the MASGA initiative and strengthening bilateral shipbuilding cooperation. The partnership was solidified through a memorandum of understanding (MOU) signed two months prior, in May.
Industry Minister Kim Jung-kwan emphasized South Korea's dedication to supporting America's shipbuilding industry in his remarks. He portrayed the center as a symbol of the strong bilateral maritime partnership and a new chapter for both nations' shipbuilding industries. Kim highlighted the MASGA initiative as a vision that aims to bolster American shipbuilding, enhance maritime power, and support regional economies.
Kim further highlighted the commitment to investing in the MASGA initiative, noting that the center will focus on joint research, technology sharing, and workforce development. He mentioned various projects by Korean companies to expand and modernize U.S. shipyards, supported by financial institutions working collaboratively to facilitate the MASGA investment.
U.S. Commerce Secretary Howard Lutnick underscored the importance of achieving tangible outcomes from the shipbuilding cooperation. He stressed that the center's establishment is crucial, not just for discussions, but for actual ship production in America. Lutnick also promised Washington's support in overcoming regulatory hurdles that Korean companies might face during their investment activities in the U.S.
Michelle Steel, the new U.S. Ambassador to South Korea, praised the shipbuilding cooperation as an expansion of the bilateral alliance into a significant and new territory. She emphasized that the KUSPC launch exemplifies the achievements possible when both countries align their industrial strategies.
South Korea's Ambassador to the U.S., Kang Kyung-wha, described the KUSPC launch as a major milestone and a starting point for creating a safe and resilient joint maritime industrial ecosystem. The initiative is seen as vital for national security, global trade, and economic stability, marking a new chapter in the long-standing cooperation between the two nations.
The Defense Acquisition Program Administration (DAPA) of South Korea expressed intentions to explore collaborative opportunities in the naval shipbuilding sector and integrate Korean companies into U.S. shipbuilding and defense supply chains. During the event, Kim and Lutnick witnessed the signing of 15 MOUs focusing on shared growth, supply chain cooperation, workforce training, and joint technology development between South Korea and U.S. shipbuilding industries. This includes the formation of "Team Korea," which integrates various Korean shipbuilders and research organizations to drive the collaboration forward.