U.S. White House Budget Director: "We Will Cooperate with South Korea on Shipbuilding... Investing Companies Should Get Contract Opportunities"

[Financial News, New York — Lee Byung-chul, Special Correspondent] Russell Vought, director of the White House Office of Management and Budget (OMB), said the United States should expand federal government contract opportunities for foreign shipbuilders that invest in the country, stressing the importance of shipbuilding cooperation with South Korea.
Speaking at a discussion hosted by the Hudson Institute, a U.S. think tank, on the 2nd, local time, OMB Director Russell Vought said foreign investment and technology were needed to rebuild the U.S. shipbuilding industry. "We will work with Japan and South Korea," he said.
"We want to learn from them," he said, emphasizing, "We want to see how they build ships and apply that know-how in the United States."
He specifically cited Philly Shipyard, which was acquired by Hanwha Group. Vought said Hanwha Group made a major investment when the shipyard was facing serious difficulties, adding, "Federal government contract opportunities should be opened up. Existing companies should not be prioritized exclusively."
He further emphasized, "We should reward companies that come to the United States and invest." He explained that substantial discussions were underway with South Korea on modernizing shipyards and building new ones in the United States.
This is understood to mean that the U.S. government intends to provide practical business opportunities, such as government orders for vessels, to South Korean companies that invest in the U.S. shipbuilding industry and expand production capacity. In July, the United States Department of Transportation (DOT) announced that two military vessels would be built at Hanwha's Philly Shipyard with a total investment of $2 billion.
Vought said the number of U.S. shipyards had fallen from 49 during World War II to 12 today, adding, "More competition and more capacity are desperately needed." He also noted that South Korea, Japan and other countries provide government support to their shipbuilding industries.
The Trump administration is pursuing ways to actively leverage South Korea's and Japan's shipbuilding technology and production capacity in rebuilding the U.S. shipbuilding industry. The U.S. government has even considered using shipyards and designs from South Korea and Japan. Vought previously said that other shipyards could be used if existing U.S. shipbuilders failed to meet cost and delivery targets.
South Korea agreed last year, during trade negotiations with the United States, to invest $350 billion in the country. Of that amount, $150 billion has been allocated to cooperation in the shipbuilding sector.



[email protected] Lee Byung-chul, special correspondent Reporter