K Shipbuilding, $150 Billion MASGA TF Activation

[Financial News] The Korean shipbuilding industry has launched a task force (TF) for the 'MASGA' (MASGA) project, a shipbuilding cooperation package related to the Korea-U.S. tariff negotiations. It is expected to discuss specific implementation plans for the $150 billion shipbuilding fund and support cooperation between the two countries.
According to the industry on the 3rd, the domestic shipbuilding companies 'Big 3', HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries, along with the Korea Shipbuilding & Offshore Plant Association, have recently launched a task force (TF) related to Korea-U.S. shipbuilding cooperation. It is reported that one executive and employee from each company participated.
The government announced on July 30 (local time) that it would create a $150 billion (approximately 209 trillion won) shipbuilding cooperation fund through a trade agreement with the United States. It is the largest single industry fund, accounting for 43% of the total $350 billion (487 trillion won) fund. It seems to support domestic shipbuilders' investments in the U.S. with a focus on public finance.
The TF activities are expected to be fully activated depending on future discussions between the Korean and U.S. governments. The government has stated that the $150 billion shipbuilding fund covers new shipyard construction, workforce training, shipbuilding, maintenance, and repair (MRO).
Hanwha Group announced that Hanwha Systems and Hanwha Ocean have acquired the U.S. Philippines Shipyard for $100 million. The goal is to increase the construction capacity, which is currently 1 to 1.5 ships per year, tenfold by 2035.
HD Hyundai has decided to jointly build LNG dual-fuel container ships with Edison Chouest Offshore (ECO) and share capabilities with Huntington Ingalls, a defense shipbuilder, to improve construction costs and delivery times.
Samsung Heavy Industries also mentioned in a recent earnings conference call that it is "discussing cooperation plans with a local U.S. shipyard" and is "seeking various forms of cooperation opportunities such as joint construction and business expansion."


ggg@fnnews.com Kang Gu-gwi Reporter