NewKerala.com

US and South Korea Sign MOU to Boost Shipbuilding Cooperation

South Korea and the United States signed a memorandum of understanding to advance bilateral shipbuilding cooperation, with Seoul committing to invest $150 billion in the US shipbuilding sector. The MOU establishes the Korea-US Shipbuilding Partnership Initiative (KUSPI) as a new platform for collaboration in commercial shipbuilding, workforce development, and industrial modernization. A partnership center will be established in Washington later this year to facilitate cooperation between government, industry, and research institutions. The agreement builds on last year's trade deal where South Korea committed to investing a total of $350 billion in the US.

Key Points: US-South Korea Shipbuilding Partnership MOU Signed

  • South Korea and US sign MOU for shipbuilding cooperation
  • Seoul pledges $150 billion investment in US shipbuilding
  • New Korea-US Shipbuilding Partnership Initiative (KUSPI) established
  • Partnership center to open in Washington later this year
3 min read

S. Korea, US join hands to advance shipbuilding cooperation

The US and South Korea signed an MOU to advance shipbuilding cooperation, with Seoul pledging $150 billion in US investment. A new partnership initiative was established.

"The MOU signing builds on ongoing U.S.-Korea cooperation in strategic industries and reflects continued efforts to strengthen allied industrial capacity - International Trade Administration"

Washington, May 9

South Korea and the United States have signed a memorandum of understanding to advance bilateral shipbuilding cooperation, an agency of the U.S. Commerce Department said, as Seoul has committed to help revitalise the U.S. shipbuilding sector as part of a bilateral trade agreement.

Park Jung-sung, deputy minister for trade at Seoul's Ministry of Trade, Industry and Resources (MOTIR), and U.S. Under Secretary of Commerce for International Trade William Kimmitt inked the MOU in Washington, overseen by Industry Minister Kim Jung-kwan and Commerce Secretary Howard Lutnick, according to the International Trade Administration.

The MOU signing came as South Korea has pledged to invest US$150 billion in the U.S. shipbuilding sector as part of last year's trade deal that committed the Asian country to investing a total of $350 billion in the U.S. with an annual cap of $20 billion, reports Yonhap news agency.

"The MOU signing builds on ongoing U.S.-Korea cooperation in strategic industries and reflects continued efforts to strengthen allied industrial capacity, promote investment, and expand collaboration in advanced manufacturing sectors," the administration said in a release.

Under the MOU, the two sides will establish the Korea-U.S. Shipbuilding Partnership Initiative (KUSPI) -- a new platform to strengthen bilateral cooperation in commercial shipbuilding, workforce development, industrial modernisation, and maritime manufacturing investment, it said.

The partnership will leverage the Korea-U.S. Shipbuilding Partnership Center, which is expected to be established in Washington later this year, and will support expanded collaboration between government, industry, and research institutions from both countries.

Specific activities under the partnership will include facilitating foreign direct investment into the U.S. maritime industrial base, workforce training initiatives, shipyard productivity improvement projects and technical exchanges, among others.

In line with the MOU, the Commerce Department will facilitate the centre's interactions with U.S. shipbuilding companies, suppliers, universities and research institutes, and act as the U.S. government-wide point of contact for the centre, according to the administration.

MOTIR will coordinate cooperation across the Korean government and other shipbuilding stakeholders and provide the personnel and funding necessary for the center.

Meanwhile, Kim and Lutnick held talks on Friday to discuss South Korea's projects to invest in the U.S. as part of the trade deal, an informed source said.

Upon arrival in Washington on Wednesday, Kim said that South Korea's first investment projects under the trade deal can be announced after a relevant law goes into effect in June.

- IANS

Share this article:

Reader Comments

S
Sarah B
Makes sense for the US to partner with a top shipbuilder like South Korea. India could benefit from similar tech transfers and workforce training programs. We have a massive coastline and need modern shipyards. Hope our government is watching and learning from this kind of strategic alliance.
A
Arjun K
While this is good for Korea-US ties, India shouldn't be left out of the maritime technology race. We have the talent and shipbuilding heritage from places like Kochi and Mumbai. The government should consider a similar MOU with Japan or South Korea to boost our commercial shipbuilding sector. Arre, we could be building LNG carriers too! 🚢
P
Pooja D
Respectful criticism: Why is India not pursuing such high-value strategic partnerships? We have coastlines, we have ports, but our shipbuilding industry is nowhere near this scale. The government's 'Make in India' push needs to target advanced manufacturing like this. This is about national security too - shipbuilding capacity is strategic.
S
Suresh O
Good for both countries. The US needs to rebuild its industrial base, and Korea gets a foothold in the American market. India should approach this as a learning opportunity - workforce development, tech transfer, and shipyard modernization are exactly what we need for our own maritime sector. Jaipur may not have a coast, but our economy depends on sea trade.
M
Michelle N
$350 billion total investment is huge. The KUSPI partnership sounds like a well-structured framework. India should consider something similar with a major shipbuilding nation. Our shipyards in Visakhapatnam and Goa could benefit enormously from such collaborations. The focus on workforce training is particularly smart.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50