Ishiba: investment into US shipbuilding could involve S. Korea

Ishiba: investment into US shipbuilding could involve S. Korea

South Korean Finance Minister Koo Yun-cheol announced a significant shipbuilding partnership package, dubbed "Make America Shipbuilding Great Again" (MASGA), as a key component of the recent tariff agreement between the U.S. and South Korea. This $150 billion investment, led by South Korean shipbuilders, aims to revitalize the U.S. shipbuilding industry and counter China's dominance in the sector [1].

The MASGA project includes the construction of new shipyards in the U.S., training of shipbuilding personnel, and the maintenance of the U.S. Navy fleet. South Korean officials proposed this initiative during trade negotiations to secure better tariff terms from the U.S. [2]. The project is expected to support Korean shipbuilders' investments in the U.S. through public finance mechanisms, such as loans and guarantees [3].

Major South Korean shipbuilders, including HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries, have formed a joint task force to support the MASGA project. The task force will facilitate the implementation of the initiative and serve as a channel for collecting industry demands and delivering them to the government [4].

The MASGA project represents the largest single-industry fund in the broader $350 billion investment package agreed upon by the U.S. and South Korea. This package also includes investments in strategic industries such as semiconductors [2]. The project's success will depend on overcoming challenges such as obtaining necessary parts and materials, including steel plates [1].

The agreement on the MASGA project is expected to have a positive impact on the South Korean shipbuilding industry. Hanwha Ocean's shares ended 13% higher on Thursday following the news of the tariff agreement and the shipbuilding partnership [1]. However, the project's impact on individual companies, such as Hanwha Systems, which owns a 60% stake in the Philly Shipyard, remains to be seen. Hanwha Systems reported a 60% fall in second-quarter operating profits due to costs from its acquisition of Philly Shipyard [1].

The MASGA project is a significant step in enhancing bilateral cooperation between the U.S. and South Korea. It not only aims to bolster the U.S. shipbuilding industry but also strengthens the economic ties between the two nations. The project's success will depend on effective coordination between the governments, private sector entities, and industry stakeholders.

References:
[1] https://www.newsmax.com/world/globaltalk/south-korea-u-s-trade/2025/07/31/id/1220785/
[2] https://www.scmp.com/economy/china-economy/article/3320297/behind-trumps-south-korea-deal-plan-transform-global-shipbuilding
[3] https://economictimes.indiatimes.com/news/international/business/south-korea-proposes-shipbuilding-project-to-us-in-trade-talks-report/articleshow/122943946.cms?from=mdr
[4] https://www.koreaherald.com/article/10545573