Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
MASGA fuels job loss fears in Korea, US
Sen. Tammy Baldwin, right, poses with Denny Lauer of the United Steelworkers at Fincantieri Ace Marine in Wisconsin, Aug. 26. Captured from Baldwin's X
By Park Jae-hyuk
Questions persist over benefits from shipbuilding partnership
Shipyard workers in both Korea and the United States are expressing concerns about their job security following the two countries' agreement to strengthen cooperation in the shipbuilding sector through the so-called Make American Shipbuilding Great Again (MASGA) project, a $150 billion initiative aimed at revitalizing U.S. shipyards with Korean investments.
Korean workers remain anxious over U.S. President Donald Trump’s request for Korean companies to build ships in U.S. territory using American labor, while their U.S. peers have criticized his proposals to purchase ships from Korea.
As uncertainties persist over how Korea will raise money and invest in the U.S. shipbuilding industry, calls are growing in both countries to protect shipyard jobs.
"MASGA will be impossible without the hands and skills of Korean workers," HD Hyundai Heavy Industries’ union said Wednesday as some of its members fear workforce reductions at the company’s Ulsan shipyard.
Hanwha Ocean’s union also cautioned against a rosy outlook for MASGA.
Ahead of the Korea-U.S. summit on Aug. 25, the Korean Metal Workers’ Union questioned the government's claims that MASGA would benefit Korea.
"If technologies and skilled workforce are transferred to the U.S., the livelihoods of Korean workers will be threatened with deteriorating competitiveness of the domestic shipbuilding industry," the union said.
Unionized workers at HD Hyundai Heavy Industries (HHI) stage a protest at the company's shipyard in Ulsan, Wednesday. Courtesy of HD HHI
Meanwhile, in the U.S., MASGA is encountering growing opposition from workers and politicians who advocate maintaining a ban on foreign vessels in domestic water routes.
"I am deeply concerned by recent reports that indicate the Trump administration is looking to have U.S. ships made overseas in South Korea," Sen. Tammy Baldwin from Wisconsin said in a statement Aug. 28. "The president must prioritize American workers by investing in our shipbuilding industry here at home and buying American-made ships."
Baldwin also visited Fincantieri Ace Marine on Aug. 26 to meet with unionized workers at the Italian company-owned shipyard in her state.
On Aug. 22, Baldwin sent Trump a letter urging him to inform President Lee Jae Myung that Korean investment in the shipbuilding industry should directly benefit American workers. In the letter, she said it would be a "strategic mistake" if the U.S. outsources ship construction and shipyard expansion to Korea.
"I urge that you prioritize creating jobs here at home and ensure that our shipbuilders, including Korean investment in U.S.-based subsidiaries such as Hanwha's yard in Philadelphia, have the tools they need to compete and succeed. The shipbuilding, maintenance and repair supply chain should not be outsourced to other nations," she said.
The Metal Trades Department of the American Federation of Labor and Congress of Industrial Organizations has denounced a bipartisan proposal to ease the Jones Act. The federal law requires merchandise transported by water between U.S. ports to be carried on U.S.-built, U.S.-crewed and U.S.-owned vessels flying the U.S. flag.
"The Merchant Marine Allies Partnership Act would let ships built in foreign 'ally' countries, including South Korea, enter U.S. coastal trade," the organization said Aug. 12. "That's a pink slip for American workers."