Joint fact sheet issued by Seoul, Washington indicates potential construction of US ships at Korean shipyards
Korean shipbuilders on Friday welcomed the joint fact sheet announcement issued by Korea and the United States, which hinted at a possibility of building US vessels at Korean shipyards, opening a new market.
Earlier in the day, President Lee Jae Myung announced in a live broadcast from Seoul’s presidential office that the two countries had agreed to pursue systematic changes so that not only US commercial ships but also US military vessels can be built in Korea, saying they have laid stepping stones for their shipbuilding industry to be great together.
The White House, on its official website, also posted the fact sheet on President Donald Trump’s meeting with the Korean leader, disclosing the agreement document for the first time since the deal was struck in July.
Noting that the agreement includes $150 billion of Korean investment in the shipbuilding sector, an initiative known as Make American Shipbuilding Great Again, or MASGA, the White House said the two countries committed to further collaboration through a working group tasked with discussing vessel maintenance, repair and overhaul, or MRO, as well as workforce development, shipyard modernization and supply chain resilience.
Korea’s two leading shipbuilders -- HD Hyundai and Hanwha Ocean -- expressed appreciation for the government’s efforts to finalize the agreement.
“We expect that the confirmation of the fact sheet resolves uncertainties in the domestic economy,” said an HD Hyundai official.
“As the No. 1 global shipbuilder, HD Hyundai will actively push for the success of the Korea-US shipbuilding cooperation project MASGA.”
HD Hyundai has been building strong ties with Huntington Ingalls Industries, the largest military shipbuilder in the US, as the two partners agreed to construct auxiliary ships for the US Navy’s next-generation fleet as well as jointly invest in the acquisition or establishment of new shipbuilding facilities in the US last month.
Hanwha Ocean said in a statement that it will continue to move forward with the national agenda, adding that it will invest in its Geoje shipyard and expand the site as well as grow alongside regional partners.
“We will serve as the best Korea-US security partner by introducing the technologies and capabilities of the Geoje shipyard to US facilities such as the Hanwha Philly Shipyard,” said Hanwha Ocean.
Hanwha, which acquired the Philly Shipyard for $100 million last year, pledged a $5 billion investment in the yard in August this year when President Lee visited the facility after his first summit with Trump. Hanwha said the investment will be used to build two more docks and three quays to increase production capacity.
hwkan@heraldcorp.com
