MASGA Project Kickoff Brings Real Estate Excitement to Shipbuilding Hubs Ulsan and Geoje

[Financial News] In the Korea-US tariff negotiations, Korea succeeded in reaching an agreement to lower mutual tariffs, spearheaded by the MASGA Project (Make American Shipbuilding Great Again), which is expected to be a catalyst for the revival of the domestic shipbuilding industry. There is also analysis that the value of regions representing the shipbuilding industry, such as Ulsan and Geoje, will rise.
According to the industry on the 6th, the Korean and US governments have agreed to create a $350 billion (approximately 485 trillion won) investment fund for the US, of which $150 billion (approximately 208 trillion won) will be used for shipbuilding cooperation. Korea succeeded in lowering mutual tariffs from the existing 25% to 15%.
With this Korea-US shipbuilding cooperation, the 'MASGA Project' is expected to proceed. The MASGA Project is structured to provide financial support when domestic shipbuilders establish shipyards, build ships, train personnel, and pursue maintenance, repair, and overhaul (MRO) businesses in the US.
It is known that the big three domestic shipbuilders (HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, Samsung Heavy Industries) will operate a task force (TF) to discuss Korea-US shipbuilding cooperation. Additionally, in the political sphere, a support law is expected to be proposed to create a Korea-US Shipbuilding Cooperation Fund, establish a Korea-US Shipbuilding Cooperation Council, designate special defense zones for producing military ships, transport ships, and related blocks through Korea-US agreements, and provide guarantees and investments from the Korean government for infrastructure construction.
According to market research firm IBISWorld, the US shipbuilding market is expected to grow from $39.1 billion (approximately 51 trillion won) this year to $51.1 billion (approximately 70 trillion won) by 2030. The US plans to grow the market by increasing its own investment, and there are observations that Korea will win many contracts in this process.
As a result, interest in cities representing the shipbuilding industry is emerging. Ulsan, in particular, is home to over 580 shipbuilding companies centered around HD Hyundai Heavy Industries, and Geoje in Gyeongnam is also attracting attention as a shipbuilding-specialized city with Hanwha Ocean, Samsung Heavy Industries Geoje Shipyard, and Okpo Shipyard.
With the expected economic revitalization through the Korea-US negotiations, expectations in the real estate market in Ulsan and Geoje are also rising. In particular, Hanwha Construction Division's upcoming 'Hanwha Foretna Ulsan Mugeo' in Ulsan, which develops the site of Hanwha Chemical's employee housing, is attracting attention from local consumers.
Hanwha Foretna Ulsan Mugeo is a large-scale apartment complex with 816 units, ranging from 84 to 166 square meters, in 8 buildings, from 3 basement levels to 25 floors above ground. The complex is located in a triple lifestyle zone that conveniently connects Mugeo-dong, Ok-dong, and Sinjeong-dong, allowing easy access to Ulsan's representative education, environment, and living infrastructure. Around the complex, there are about 10 schools, including Samho Elementary, Okhyeon Elementary, Samho Middle, Seonggwang Girls' High, and Ulsan Jeil High.
In the same month, 'Eco Delta City Prugio Trepark (1,370 units)' is scheduled to be supplied in Gangseo-gu, Busan, where commuting to Geoje is convenient via the Geoga Bridge, and 'Triven Changwon (434 units)' will be available for general sale in Changwon, Gyeongnam.
Kwon Il, head of the Real Estate Info Research Team, said, "The development of industries is considered the most crucial factor leading to an increase in real estate value, and in the case of the shipbuilding industry, which requires a lot of manpower, there is a possibility of a large influx of real estate demand due to job creation."


going@fnnews.com Choi Ga-young Reporter