Korea strengthens shipbuilding alliances with US, Canada

Industry Minister Kim Jung-kwan, third from left, and U.S. Commerce Secretary Howard Lutnick, second from left, pose at the U.S. Department of Commerce in Washington, Friday (local time), after the two governments signed a memorandum of understanding to expand bilateral shipbuilding cooperation. Courtesy of Ministry of Trade, Industry and Resources

Seoul strengthened partnerships with Washington and Ottawa in the shipbuilding sector following Industry Minister Kim Jung-kwan’s weeklong visit to North America.

While discussing Korea’s plan to invest $350 billion in the United States in exchange for tariff reductions, Kim also sought to persuade lawmakers there of the need for the ongoing investigation into Coupang.

The Ministry of Trade, Industry and Resources said Sunday that Kim held in-depth discussions with U.S. Commerce Secretary Howard Lutnick on details of strategic investment projects in American industries and explained Korea’s legislation for a special law to support the initiative.

The two governments also signed a memorandum of understanding to expand bilateral shipbuilding cooperation by opening the Korea-U.S. Shipbuilding Partnership Center in Washington later this year to support collaboration among government, industry and research institutions in both countries.

Still, it remains unclear which U.S. project will be Korea’s first investment target.

Before Kim’s departure, reports suggested that construction of a liquefied natural gas export terminal in Louisiana was the leading candidate. After the ministry denied the report, Kim told reporters in Washington that it was too early to disclose the first investment project before the special law takes effect next month.

“The Louisiana project is under consideration, but the two countries are not yet in a position to determine whether it will be the first project,” he said Wednesday.

The minister reiterated the position upon returning home later in the day, saying, “As the matter is currently under review, we ask that you watch the situation calmly.”

Industry Minister Kim Jung-kwan talks with U.S. Sen. Bill Hagerty during a teleconference in Washington, Friday (local time). Courtesy of Ministry of Trade, Industry and Resources

Kim also joined a teleconference with Sen. Bill Hagerty, a pro-Coupang lawmaker who has criticized Korea’s probe into the e-commerce company. The ministry said he explained pending issues in the digital sector to help improve mutual understanding.

“The recent trip was an opportunity to explain Korea’s stance on Coupang and address U.S. misunderstandings about the issue,” Kim said.

Separately, Kim met with Russell Vought, director of the U.S. Office of Management and Budget, and requested support for the smooth implementation of Seoul’s investment in U.S. shipbuilding and other industries. During a meeting with U.S. Energy Secretary Chris Wright, the two sides reviewed progress in discussions on cooperation in nuclear power.

In Ottawa, Kim held a series of high-level meetings to support Korean shipbuilders’ bid for Canada’s submarine procurement contract.

He discussed strategic cooperation on the submarine project with Sen. Hassan Yussuff, a member of Canada’s Standing Committee on National Security and Defence and a former senior defense committee official.

“We will strive to achieve the best possible outcome while engaging in fair competition with Germany,” Kim said.

Kim also met with Flavio Volpe, president of the Automotive Parts Manufacturers’ Association of Canada (APMA), and expressed appreciation for the association’s support of Korea’s submarine bid. APMA signed an agreement with Hanwha last month to establish a joint venture for military and special-purpose vehicle production.

During the visit, the Korea Research Institute of Ships and Ocean Engineering signed an agreement with Memorial University of Newfoundland for joint research and development of icebreakers.