Korea-US, 11 Contracts in Shipbuilding, Nuclear Power, Aviation... Manufacturing Alliance Intensifies

[Financial News] The Korea-US partnership has signed a total of 11 contracts and MOUs, including cooperation in the nuclear field such as joint investment funds in the shipbuilding industry and investment in uranium enrichment facilities, along with the design, construction, and operation of small modular reactors (SMRs).
 On the 25th (local time) in Washington D.C., USA, the 'Korea-US Business Roundtable' was held, which is expected to lead to substantial economic effects by connecting the manufacturing alliance to tangible results.
 The roundtable was attended by President Lee, along with Ryoo Jin, chairman of the Korea Economic Cooperation, Lee Jae-yong, chairman of Samsung Electronics, Chey Tae-won, chairman of SK, Chung Eui-sun, chairman of Hyundai Motor, Koo Kwang-mo, chairman of LG, and a total of 16 Korean business leaders, as well as Jensen Huang, CEO of NVIDIA, and David Rubenstein, co-chairman of Carlyle Group, among a total of 21 American business leaders. From the governments, Kim Jung-gwan, Minister of Trade, Industry and Energy, and Howard Lutnick, U.S. Secretary of Commerce, attended.
 Immediately after the roundtable, a total of 11 contracts and MOUs were signed in the fields of shipbuilding, nuclear power, aviation, liquefied natural gas (LNG), and critical minerals.
 Specifically, in the shipbuilding sector, HD Hyundai, Korea Development Bank, and Cerberus Capital signed an MOU to form a multi-billion dollar joint investment fund aimed at rebuilding and strengthening the maritime capabilities of the United States and its allies, including U.S. shipbuilding, marine logistics infrastructure, and advanced marine technology. Additionally, Samsung Heavy Industries and BAE Marine Group established a strategic partnership for the maintenance, repair, and overhaul (MRO) of support ships of the U.S. Navy, shipyard modernization, and joint shipbuilding.
 In the nuclear power sector, Korea Hydro & Nuclear Power, Doosan Enerbility, X-energy, and Amazon Web Services agreed to cooperate on the design, construction, operation, supply chain establishment, investment, and market expansion of SMRs.
 Doosan Enerbility and Fermi America, a U.S. private energy developer, established a comprehensive cooperation relationship related to large nuclear power plants and SMR equipment to be supplied to the 'AI Campus Project' underway in Texas, USA.
 Korea Hydro & Nuclear Power, Samsung C&T, and Fermi America agreed to join forces for the smooth progress of the 'AI Campus Project' construction. Furthermore, Korea Hydro & Nuclear Power and Centrus, a U.S. uranium enrichment supplier, agreed that Korea Hydro & Nuclear Power would jointly participate in Centrus' investment in building uranium enrichment facilities.
 Our companies are expected to actively participate in nuclear power plant construction projects in response to the rapidly increasing power demand in the U.S. based on their experience in nuclear power plant construction and excellent technology. Moreover, through Korea-US cooperation, it is expected that enriched uranium, the raw material necessary for domestic nuclear power plant operation, can be secured stably.
 In the aviation sector, Korean Air signed an MOU to newly introduce 103 next-generation high-efficiency aircraft (worth $36.2 billion) from Boeing and a contract for engine purchase and engine maintenance services (worth $13.7 billion) with GE Aerospace. The announced content is a separate additional contract from the purchase of 50 Boeing aircraft and GE Aerospace engines announced by Korean Air last March and is the largest single contract since the founding of Korean Air.
 KOGAS signed a mid- to long-term LNG import contract with global energy companies such as Trafigura, based on U.S. LNG, for about 10 years from 2028, with an annual scale of 3.3 million tons. The long-term contract volume is expected to be supplied by Cheniere, the largest LNG exporter in the U.S. Through this contract, KOGAS is expected to contribute to the stabilization of domestic natural gas supply and prices by securing LNG with price competitiveness in the mid- to long-term.
 Meanwhile, in the critical minerals sector, Korea Zinc will cooperate with global defense company Lockheed Martin on germanium supply purchases and critical mineral supply chains. Through this agreement, Korea Zinc will start commercial production of germanium at its domestic plant in 2028 and supply germanium to Lockheed Martin on a long-term basis.
 Minister of Trade, Industry and Energy Kim Jung-gwan stated at the event, "The government will provide all necessary institutional support so that Korea-US manufacturing cooperation can usher in a renaissance, and through this, we will strive to create endless business opportunities for companies in both countries."


aber@fnnews.com Park Ji-young Reporter