To support U.S.-Korea shipbuilding cooperation, policy financing institutions and three major domestic shipbuilders have joined forces. The government plans to accelerate policy financing support to simultaneously promote the revitalization of the U.S. shipbuilding industry and the expansion of the domestic shipbuilding ecosystem into overseas markets.
On June 25, the Ministry of Economy and Finance announced that the U.S.-Korea Strategic Investment Corporation, policy financing institutions, and the three domestic shipbuilders signed a memorandum of understanding (MOU) for the effective implementation of U.S.-Korea shipbuilding cooperation investments at the Korea Export-Import Bank in Yeouido, Seoul.
Attendees included representatives from the U.S.-Korea Strategic Investment Corporation, the Export-Import Bank, the Industrial Bank of Korea, the Korea Trade Insurance Corporation, and the Korea Maritime Promotion Corporation, along with major domestic shipbuilders HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean.
This MOU is a follow-up to the strategic investment MOU signed in November of last year, which outlined a $150 billion shipbuilding cooperation investment. This shipbuilding cooperation is considered one of the two pillars of the $200 billion investment in the U.S. alongside strategic investments between the two countries.
As part of the agreement, the participating institutions and shipbuilders will form a 'U.S.-Korea Shipbuilding Cooperation Council.' The council will facilitate information exchange, identify business opportunities, and promote policy financing support. The Export-Import Bank will serve as the secretariat, managing internal and external communications and project progress.
During the signing ceremony, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol described the shipbuilding cooperation investment as a mutually beneficial initiative that will not only aid the reconstruction of the U.S. shipbuilding industry with the help of South Korea's world-class shipbuilders but also provide new work and markets for the entire domestic shipbuilding ecosystem, from large shipbuilders to small and medium-sized enterprises and equipment suppliers.
He urged the corporation and policy financing institutions to ensure timely and sufficient funding for rational shipbuilding cooperation investments and emphasized the need to find ways to share risks and uncertainties of initial investments that individual companies may struggle to handle alone.
Koo also called for the active identification of investment projects that would benefit both the U.S. and South Korean shipbuilding industries, encouraging the inclusion of domestic small and medium-sized shipbuilders and equipment suppliers as part of a 'Team Korea.'
The government plans to use this agreement to support domestic shipbuilders' entry into the U.S. market and secure ship orders. The aim is to build trust for South Korean companies in the U.S. shipbuilding, naval, and defense markets while solidifying a policy financing support system that allows the domestic shipbuilding industry to gain new growth momentum.
Kwon Dae-young, Vice Chairman of the Financial Services Commission, stated, "We will actively support the necessary financial assistance based on a close cooperation system among the newly established U.S.-Korea Strategic Investment Corporation, policy financing institutions, and private finance to ensure that financial support is provided without disruption."
Park Dong-il, Director of the Industrial Policy Office at the Ministry of Trade, Industry and Energy, remarked, "MASGA is the first strategic overseas expansion project in the history of K-Shipbuilding," emphasizing the need for smooth cooperation among policy financing institutions to ensure that companies can enter the U.S. market without issues.
* This article has been translated by AI.
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