Washington: South Korea and the United States have signed a memorandum of understanding (MOU) to enhance bilateral cooperation in the shipbuilding industry. The agreement, facilitated by an agency of the U.S. Commerce Department, is part of a broader effort by Seoul to assist in revitalizing the U.S. shipbuilding sector as outlined in a bilateral trade agreement.
According to Yonhap News Agency, the MOU was signed by Park Jung-sung, deputy minister for trade at South Korea's Ministry of Trade, Industry and Resources (MOTIR), and William Kimmitt, the U.S. Under Secretary of Commerce for International Trade. The signing took place in Washington, with Industry Minister Kim Jung-kwan and Commerce Secretary Howard Lutnick in attendance.
The MOU is part of South Korea's pledge to invest $150 billion in the U.S. shipbuilding sector as part of a larger trade agreement made last year. This agreement commits South Korea to invest a total of $350 billion in the U.S., with an annual investment cap of $20 billion.
The International Trade Administration stated that the MOU builds on existing U.S.-Korea cooperation in strategic industries and aims to strengthen allied industrial capacity, promote investment, and enhance collaboration in advanced manufacturing sectors.
A key element of the MOU is the establishment of the Korea-U.S. Shipbuilding Partnership Initiative (KUSPI), a new platform intended to bolster bilateral cooperation in areas such as commercial shipbuilding, workforce development, industrial modernization, and maritime manufacturing investment.
The partnership will utilize the Korea-U.S. Shipbuilding Partnership Center, expected to be established in Washington later this year. This center will facilitate collaboration between government entities, industry players, and research institutions from both countries.
Activities under the partnership will focus on promoting foreign direct investment into the U.S. maritime industrial base, workforce training initiatives, shipyard productivity improvement projects, and technical exchanges.
The Commerce Department will play a key role in facilitating the center's interactions with U.S. shipbuilding companies, suppliers, universities, and research institutes, serving as the U.S. government-wide point of contact for the center.
MOTIR will manage cooperation across the Korean government and other shipbuilding stakeholders, ensuring the necessary personnel and funding for the center.
In related developments, Kim and Lutnick held discussions to explore South Korea's investment projects in the U.S. as part of the trade deal. Kim announced that South Korea's initial investment projects under the agreement could be unveiled following the enactment of relevant legislation in June.