$150 Billion Korea-U.S. Shipbuilding Cooperation Takes Shape
"Expanding Through Strengthening the Major and Small K-Shipbuilding Ecosystem"
The shipbuilding industry on December 4 (local time) welcomed the U.S. Department of Commerce’s confirmation of Korea-U.S. tariff reductions and eliminations, announced in the Federal Register. Following the introduction of the “Special Act on Strategic Investment Management between Korea and the United States” in the National Assembly on November 26, the U.S. government’s legal endorsement is seen as resolving much of the trade uncertainty the industry has faced.
The Korea Offshore & Shipbuilding Plant Association stated in a press release, “This measure strengthens strategic investment cooperation between Korea and the United States and reduces the risks our companies have faced,” adding, “We will respond so that the tariff reductions can be translated into actual shipbuilding project investments and new order opportunities.”
Korea and the United States agreed to pursue a $150 billion (approximately 220 trillion won) shipbuilding cooperation package through a memorandum of understanding (MOU) signed on November 14. The industry is currently reviewing a variety of collaborative projects under this framework, including LNG carriers, military support vessels, eco-friendly ships, and the establishment of production bases in the United States.
The association added, “We will work to ensure that Korea-U.S. shipbuilding cooperation leads to securing workloads for our shipyards and pioneering new markets,” and, “We aim to strengthen the competitiveness of the entire Korean shipbuilding ecosystem, not only for major shipbuilders but also for medium-sized, small shipyards and equipment industries.”
The Korea Offshore & Shipbuilding Plant Association plans to collaborate with the government to support the practical implementation of Korea-U.S. shipbuilding cooperation projects in the future.
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