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Trade agreements

South Korea's Shipbuilding Proposal Contributes to Trade Deal with US

Strategic Insights

— 1 min read

South Korea's top trade negotiator, Finance Minister Koo Yun-cheol, credited the country's comprehensive proposal for shipbuilding industry cooperation with the US as the key factor in reaching a trade deal with President Donald Trump's administration. The agreement will lower "reciprocal" tariffs on Korea to 15 percent from the proposed 25 percent. As part of the deal, South Korea and the US will cooperate on a large-scale project, dubbed "Make American Shipbuilding Great Again (MASGA)," which includes constructing new shipyards in the US, nurturing shipbuilding personnel, and reestablishing related supply chains.

Key Takeaways:

  • The "Make American Shipbuilding Great Again (MASGA)" project is a core component of the US-Korea trade deal, aiming to revive the US shipbuilding industry.
  • The project involves constructing new shipyards in the US, nurturing shipbuilding personnel, and reestablishing related supply chains.
  • The MASGA project is expected to create new business opportunities for South Korean shipbuilding companies with the world's best shipbuilding design and construction capabilities.
  • The project will contribute to the rejuvenation of the US shipbuilding industry, which has been struggling due to China's superior shipbuilding capacity.
  • The US administration has been pushing to restore America's shipbuilding industry as a response to China's growing influence in the industry.
  • South Korea's proposal for shipbuilding cooperation was led by Finance Minister Koo Yun-cheol, who doubled as deputy prime minister for economic affairs.

Statistics:

  • The MASGA project aims to create a US$150 billion Korea-U.S. shipbuilding cooperation package.
  • China has over 230 times the shipbuilding capacity of the US.
  • The US shipbuilding industry has been seeking to rebuild its industry in the face of China's overwhelming capacity to construct ships.

Sources:

  • **Yonhap News Agency**, July 31, 2025 ("South Korea's top trade negotiator says shipbuilding industry cooperation contributed to deal with US")

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