[Choe Jin-suk Column] Opportunity of 'MASGA'

President Park Chung-hee takes out a cigarette and offers one to Chung Ju-yung, chairman of Hyundai. He lights it immediately and continues speaking. "When you started the shipbuilding business, did you think it would be easy? If Japan and the United States don't work, try going to Europe to raise money. There will surely be a way." This is the scene Chairman Chung recalled when asked by reporters about the starting point of Hyundai's shipbuilding business.

'Escape from poverty of the nation' was the task of the era, and Chairman Chung's foreign loan story was full of ups and downs. When he went around the financial district of New York asking for funds, he was treated as a lunatic. Criticism poured in, questioning whether a country with no technology or experience could build ships. Tokyo was no different. He went to the Blue House intending to quit the business, but the solemn atmosphere there changed his mind.

The story of persuading Barclays Bank in the UK by showing the turtle ship depicted on the back of the 500 won bill came out later. Korea claimed a 500-year history of shipbuilding, having built turtle ships since the 1500s, which amazed the officials. Barclays demanded a shipowner to buy the ship as a condition for providing funds. The Greek shipping company Livanos appears here. Although the only thing to show the shipowner was a single photo of Ulsan Mipo Bay, the conditions set by Chairman Chung were irresistible. 'We will surely build a good ship by the promised date, if we fail to keep this promise, we will add interest to the deposit, and if there is a defect in the ship, you don't have to take it, and we will return the principal.'

The remaining task was a race against time. According to records, the actual ship order was in December 1970, the shipyard site was prepared in April 1971, and the shipyard groundbreaking ceremony was in March 1972. Ship construction began in March 1973, but the dock was completed in 1974. During this time, blocks were made on bare ground. The ship was delivered to Livanos in November 1974. Hyundai, with no prior shipbuilding experience, quickly rose to become a top global shipbuilder. The speed, punctuality, and trust assets of Korea's shipbuilding industry were built this way.

Korea's shipbuilding industry surpassed Japan in the late 1990s and maintained its top position for over a decade. Technology advanced rapidly. High-value-added ships such as LNG carriers and offshore plant technology still hold overwhelming superiority. However, the industry crisis has arrived. Since the global financial crisis of the 2010s, cargo volume has plummeted, leading to fierce price competition among companies and a long tunnel of recession. But signs of crisis were evident even before.

China's fierce pursuit became visible in the 2000s. Since the Deng Xiaoping era, shipbuilding has been used as a stepping stone for maritime power, and massive undisclosed subsidies flowed into state-owned shipbuilders. In 2002, China declared itself a maritime power, and by the mid-2000s, its ship orders were close to domestic companies. After 2020, China eventually reached the status of a shipbuilding powerhouse, accounting for more than 50% of the world's merchant ships. During this period, ship technology significantly improved its warship construction capabilities.

China's shipbuilding revival period coincides precisely with the decline of the US merchant fleet. Since the Reagan administration, subsidies have disappeared under the neoliberal policy, and corporate protection barriers have been raised high. Labor costs soared, and the ecosystem, devoid of competition, went down a path of decline. The US, which once accounted for 90% of the world's ships after the war, now has a single-digit market share. China's shipbuilding capacity is more than 200 times that of the US. How can the US not be in a hurry?

Our government's 'MASGA' project, which means rebuilding the US shipbuilding industry, is said to have played a significant role as a leverage in US tariff negotiations. The mission is to pass on the determination and perseverance that created blocks from scratch to the US. Even in a collapsed ecosystem, the US is still superior to any country in military ship technology such as aircraft carriers and Aegis ships. This means there is a separate path for win-win with the US. However, if we lose tension, we cannot rule out the possibility of becoming a subcontractor for US ships. Companies must revive shipyards in Ulsan, Geoje, and Gunsan with limited resources. It is indeed a heavy and realistic topic. The government must refine the MASGA plan repeatedly.

jins@fnnews.com