The South Korean and U.S. governments have officially begun high-level discussions on a strategic investment project worth $350 billion. The two countries are focusing on joint investments and research and development (R&D) in the shipbuilding and energy sectors, including nuclear power and liquefied natural gas (LNG), to enhance cooperation.
According to the Ministry of Trade, Industry and Energy, Minister Kim Jeong-gwan visited Washington, D.C., from May 6 to 9 to discuss the strategic investment project and ways to strengthen industrial and trade cooperation with key U.S. officials. Following the passage of the Special Investment Act, discussions on subsequent legislation and implementation frameworks are gaining momentum.
During his visit, Minister Kim met with U.S. Secretary of Commerce Howard Rutnik to explain the South Korean government's progress on subsequent legislation and implementation frameworks following the Special Investment Act's passage. The two sides discussed more concrete directions for advancing the strategic investment project based on previous discussions focused on shipbuilding and energy.
As a result of this meeting, the Ministry of Trade, Industry and Energy and the U.S. Department of Commerce signed a memorandum of understanding (MOU) for the Korea-U.S. Shipbuilding Partnership Initiative. Under this agreement, the two countries plan to establish a Korea-U.S. Shipbuilding Cooperation Center in Washington, D.C., by the end of the year to support collaboration among governments, industries, and research institutions.
Specific activities will include promoting foreign direct investment in the U.S. maritime industry, workforce development initiatives, shipyard productivity enhancement projects, and technology exchanges. The detailed areas of cooperation will be further defined through subsequent discussions between the two governments.
The U.S. Department of Commerce will facilitate exchanges among U.S. shipbuilders, suppliers, universities, and research institutions while serving as a contact point for the center at the government level. The Ministry of Trade, Industry and Energy will coordinate cooperation among South Korean stakeholders in the shipbuilding sector and provide the necessary personnel and funding for the center's operations.
Minister Kim also met with Russell Vought, Director of the Office of Management and Budget at the White House, to request U.S. government support for the Make American Shipbuilding Great Again (MASGA) project that South Korea is pursuing.
Additionally, he discussed energy cooperation issues, including nuclear power, with U.S. Secretary of Energy Chris Wright, exploring ways to strengthen future collaboration.
Minister Kim held a virtual meeting with Senator Bill Hagerty of Tennessee, a prominent supporter of South Korea, to discuss nuclear cooperation and digital issues, continuing outreach efforts to the U.S.
Previously, during last year's Korea-U.S. summit, the two countries agreed to pursue the MASGA project, committing to $150 billion in investments in the U.S. shipbuilding sector. This investment is part of the broader $350 billion strategic investment commitment, which includes reductions in tariffs on South Korean products and automobile tariffs in exchange.
The Ministry of Trade, Industry and Energy plans to maintain close communication with the U.S. regarding the strategic investment project while actively managing industrial and energy cooperation and trade issues.
After concluding his visit to the U.S., Minister Kim is scheduled to return to South Korea via Incheon International Airport on the afternoon of May 10.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.