Korea Eximbank, shipbuilders join forces on $150 bil. US investment plan

Export-Import Bank of Korea Chairman and CEO Hwang Ki-yeon, seventh from left, poses with heads of Korea's four other policy lenders and major shipbuilders after signing a memorandum of understanding aimed at strengthening Korea-U.S. cooperation in the shipbuilding sector at the bank's headquarters in Seoul, Thursday. Courtesy of Korea Eximbank

The Export-Import Bank of Korea (Korea Eximbank) signed a memorandum of understanding (MOU) with the country’s three largest shipbuilders, Thursday, to support a $150 billion investment drive aimed at strengthening Korea-U.S. cooperation in the shipbuilding sector.

The signing ceremony, held at the bank’s headquarters in Seoul, brought together the heads of five state-backed lenders — Korea Eximbank, Korea-U.S. Strategic Investment Corporation, Korea Development Bank, Korea Trade Insurance Corporation and Korea Ocean Business Corporation — as well as the CEOs of HD Hyundai Heavy Industries, Samsung Heavy Industries and Hanwha Ocean.

The agreement forms part of follow-up measures stemming from last year’s bilateral trade and investment deal, under which Seoul pledged to invest $150 billion in the U.S. shipbuilding sector as part of a broader $350 billion investment package.

The parties will establish a joint working group to identify investment opportunities and coordinate financing and support relevant projects. Korea Eximbank will serve as the group’s coordinator, overseeing communications among participants and tracking project implementation.

Korean shipbuilders are expected to pursue investments in the acquisition, expansion and modernization of U.S. shipyards, in line with Washington’s efforts to revitalize its shipbuilding industry. They will also explore opportunities in the construction, maintenance, repair and overhaul of U.S. naval and commercial vessels.

To support those initiatives, the participating lenders will develop tailored financing solutions for individual projects and work to ensure adequate funding throughout the investment process.

“We will work closely with all participating organizations to help Korea’s shipbuilding industry establish a stronger foothold in the U.S. market and secure new avenues for growth,” Korea Eximbank CEO Hwang Ki-yeon said.