South Korea proposes major shipbuilding initiative to US amid tariff talks

Seoul [South Korea], July 29 (ANI): South Korea has reportedly pitched a multibillion-dollar initiative called Make American Shipbuilding Great Again (MASGA) to the United States, as Seoul aims to secure more favourable terms in the ongoing tariff negotiations with Washington, as reported by The Korea Herald.

The proposal was reportedly presented by Korea's Trade, Industry and Energy Minister Kim Jung-kwan during high-level discussions with US Commerce Secretary Howard Lutnick in New York last Friday.

Unnamed sources told Korea Herald that the MASGA plan includes significant investments by Korean shipbuilders in the US, along with government-backed financial support such as loans and guarantees.

State-run entities like the Export-Import Bank of Korea and Korea Trade Insurance Corporation are being considered for involvement.

Media reports claim that U.S Commerce Secretary Howard Lutnick responded positively to the idea; however, Korea's trade ministry clarified that the specifics of the MASGA proposal are still under negotiation and have not been officially confirmed. The ministry urged caution in reporting until the discussions are finalised.

Earlier, in a statement released on Saturday, South Korea's presidential office emphasised strong American interest in the shipbuilding sector and reaffirmed both countries' intent to cooperate on a trade agreement.

Korea views its advanced shipbuilding industry as a strategic bargaining chip in the tariff talks, aligning with the Trump administration's push to revitalise US shipbuilding.

Major Korean shipbuilders HD Hyundai and Hanwha Group have already been increasing their US presence. HD Hyundai is collaborating with US firm Edison Chouest Offshore to construct mid-sized container ships by 2028, while Hanwha's acquisition of Philly Shipyard led to a contract to build a liquefied natural gas (LNG) carrier--the first export-viable LNG ship ordered by the US in nearly five decades. (ANI)