Government asks Pennsylvania to shorten permitting process, raises tariff exemptions for shipbuilding equipment

[Financial News] The South Korean government has asked the Commonwealth of Pennsylvania to consider practical support measures for the smooth progress of the Make American Shipbuilding Great Again (MASGA) initiative, including shortening the permitting process for expansion work and granting tariff exemptions on shipbuilding equipment needed for vessel construction.
On the 18th, Park Dongil, director general for industrial policy at the Ministry of Trade, Industry and Resources (MOTIR), met Rick Siger, secretary of community and economic development for the Commonwealth of Pennsylvania, at THE PLAZA Seoul, Autograph Collection. They discussed this proposal as well as broader industrial cooperation and development between South Korea and the United States in the shipbuilding sector.
The Commonwealth of Pennsylvania is home to Philly Shipyard, which was acquired by Hanwha Ocean, one of South Korea's major shipbuilders, marking the first such acquisition in the U.S. market. Against this backdrop, Rick Siger's visit was arranged to explore ways to advance cooperation in shipbuilding, including promoting investment in the U.S. shipbuilding industry.
Philly Shipyard, acquired by Hanwha Ocean and others, is currently building training vessels and medium-sized tankers. Hanwha Ocean plans to expand the yard and increase automation facilities to boost its annual production capacity from about 1.5 ships to more than 10 ships.
Park said, "Our shipbuilding companies are reviewing a range of projects to advance the MASGA initiative, including expanding U.S. shipbuilding production capacity, training skilled workers, and strengthening supply chains," adding, "Above all, effective support at the Commonwealth of Pennsylvania level is crucial for Philly Shipyard to play a leading role."
He first requested that administrative procedures, such as permits for expansion work, be shortened and that infrastructure for transportation and power supply be built in advance to meet future demand. He also asked that the 'Philly' area be designated as a Marine Prosperity Special Zone under America's Maritime Action Plan (MAP) announced in February, and stressed the need for U.S. government incentives in light of high labor costs in the United States.
To ensure smooth ship construction in the United States, he further requested a review of tariff exemptions on shipbuilding equipment such as parts and steel products. He proposed linking cooperation with South Korea's export support programs for shipbuilding equipment and the ROK-U.S. Shipbuilding Cooperation Center, which is scheduled to open this year, and expressed hope for broader collaboration with Pennsylvania's leading universities, research institutes, and in areas such as industrial AI and other advanced sectors.
MOTIR plans to continue active consultations with the U.S. government to create favorable investment conditions for Korean companies so that the MASGA initiative can produce win–win outcomes for both countries.
aber@fnnews.com Park Dongil Reporter