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(Seoul=Yonhap Infomax) Jong Hwa Han – The Ministry of Trade, Industry and Energy (MOTIE) emphasized that the $150 billion investment figure for the MASGA (Make American Shipbuilding Great Again) project is structured favorably for South Korea, as it includes loans and guarantees, unlike the $200 billion cash-based investment.
At the ‘Korea-US Shipbuilding Cooperation (MASGA) Business Strategy Seminar’ held at Parnas Tower, Teheran-ro, Gangnam-gu on the 25th, Kim Ui-jung, Director of the Shipbuilding and Offshore Plant Division at MOTIE, stated, “Unlike the $200 billion cash-focused investment, the $150 billion is a menu we can design ourselves.”
Kim explained, “If we prepare high-quality projects that benefit both the US and our companies, this target is fully achievable. The $150 billion encompasses not only direct investment but also loans, guarantees, and other financial instruments that Korean financial institutions can provide.”
He added, “The $200 billion cash investment requires final approval from President Donald Trump, whereas the $150 billion MASGA investment involves us preparing the investment projects and then seeking US approval.”
Kim further clarified, “MASGA approval does not mean approval of the investment itself, but rather that the US will grant credit offsets for the portions we invest.”
He highlighted the significance of opening a pathway for domestic construction of US-bound vessels through Korea-US negotiations.
Referencing Finland’s precedent of securing an overseas construction exemption from the US, Kim said, “Given South Korea’s advanced shipbuilding capabilities, we are fully capable of domestic construction. We will persistently urge the US government to grant institutional exemptions.”
On the current status of the MASGA project, Kim noted, “Both countries have agreed to establish a shipbuilding cooperation channel, and active discussions are ongoing between the respective commerce departments. The most important task is to propose cooperative projects as soon as possible.”
He added, “Major shipbuilders are preparing projects that can be jointly pursued with the US.”
Kim also introduced detailed MASGA projects being prepared by MOTIE. The Korea-US Shipbuilding and Offshore Industry Technology Cooperation Center, to be established with an investment of approximately 20 billion won ($15 million) over three years from 2026 to 2028, aims to create local bases for shipbuilding cooperation.
“We plan to establish about two bases and are currently discussing with the US where and how to set them up,” Kim said.
To support the entry of small and medium-sized shipbuilders and equipment suppliers into the US market, 23 billion won ($17 million) will be invested over three years to assist with smart manufacturing, product certification, and regulatory approvals.
Additionally, 49.5 billion won ($36 million) will be invested to help SMEs adapt to US naval standards and enhance their maintenance, repair, and operations (MRO) competitiveness.
Kim stressed, “MASGA should not be seen as the exclusive domain of large shipbuilders. The government will play a catalytic role so that everyone in the ecosystem can actively seize this opportunity.”
The government also plans to expand the MASGA model globally. The vision is to establish a ‘K-Shipyard Alliance’ by transferring shipbuilding cooperation and workforce development programs developed under MASGA to countries with strong ship demand and government support, such as Saudi Arabia, Brazil, and India.
Kim concluded, “This is not a Korea-China rivalry. To counter China’s volume-driven strategy, we must join forces with shipbuilding allies that have adopted K-Shipbuilding’s technology and expertise.”
jhhan@yna.co.kr
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