SEOUL, December 31 (AJP) - South Korea’s shipbuilding industry is expected to gain momentum next year as a bilateral initiative with the United States aimed at revitalizing American shipbuilding moves toward full implementation, industry officials said on Wednesday.
The project, dubbed MASGA, short for “Make American Shipbuilding Great Again,” is designed to support Washington’s efforts to rebuild domestic shipbuilding capacity. South Korean yards are widely seen as key beneficiaries, given their global competitiveness in both commercial and specialized vessels.
MASGA refers to a framework under which the South Korean government, through trade negotiations with the United States, would establish a shipbuilding cooperation fund worth up to $150 billion (around 209 trillion won). Hanwha Group, HD Hyundai Group and Samsung Heavy have been cited as core industry participants.
Observers say South Korea’s three major shipbuilders — HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean and Samsung Heavy Industries — will begin to see tangible benefits from the initiative in the new year.
U.S. President Donald Trump recently unveiled what he described as a next-generation U.S. Navy strategy known as the “Golden Fleet,” and named Hanwha as a key partner.
Speaking at a news conference on Dec. 22 at his Mar-a-Lago residence in Florida, Trump said that the Navy would work with the South Korean company as part of a planned new frigate program.
HD Hyundai Heavy has also been mentioned by industry sources as a potential partner under the Golden Fleet framework, citing its close technical cooperation with Huntington Ingalls Industries, the prime contractor selected for the U.S. Navy’s new frigate program.
In October, the two companies signed a memorandum of agreement covering cooperation in the design and construction of commercial ships and naval vessels, including joint efforts on next-generation logistics support ships and the potential establishment of shipbuilding facilities in the United States.
Samsung Heavy, meanwhile, is expanding its maintenance, repair and overhaul (MRO) business and pursuing joint-building projects with U.S. shipbuilders, including Vigor Marine and General Dynamics NASSCO.
The MASGA initiative is also expected to create opportunities for smaller South Korean shipbuilders.
HJ Shipbuilding & Construction and K Shipbuilding, both known for specialized vessels, were cited as potential beneficiaries. HJ Shipbuilding & Construction recently secured its first MRO contract involving a 40,000-ton U.S. Navy logistics support ship, leveraging its experience in naval shipbuilding and maintenance work.
Separately from MASGA, industry prospects are also supported by expectations of rising global demand for high-value vessels, particularly liquefied natural gas (LNG) carriers, driven by increased LNG exports from the United States and Europe. Clarkson Research, a London-based shipping and shipbuilding consultancy, forecasts 115 LNG carrier orders next year, up 24 percent from this year.
Oh Hyun-seok, a professor of international trade at Keimyung University, said the initiative could benefit not only shipbuilders but also suppliers of components and equipment.
“Given the limited shipbuilding infrastructure in the United States, how South Korean companies deploy skilled workers and structure supply strategies will be critical to the success of the project,” Oh said.
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