MASGA initiative aims to deepen Korea-U.S. shipbuilding cooperation under Lee-Trump trade framework
SEOUL, August 3 (Korea Bizwire) — South Korea’s leading shipbuilders have formed a joint task force to coordinate participation in the newly announced Korea-U.S. shipbuilding partnership, known as the MASGA (Maritime and Shipbuilding Growth Arrangement) initiative—a $150 billion sector-specific fund unveiled as part of a broader bilateral trade agreement under Presidents Lee Jae-myung and Donald Trump.
The task force, launched by the nation’s “Big Three” shipbuilders—HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries—alongside the Korea Offshore & Shipbuilding Association, is expected to support strategic planning and industry-government coordination for MASGA’s implementation.
Comprising one executive and one staff member from each company, the task force has held its initial meeting and is scheduled to resume full-scale discussions following the industry’s summer break in mid-August.
According to government and industry sources, the MASGA project represents the largest single-sector allocation within the broader $350 billion bilateral investment framework—accounting for 43% of the total package.
On the afternoon of July 31, the day the Korea-U.S. trade agreement was concluded, a ship under construction is seen at Hanwha Ocean’s Geoje shipyard in Aju-dong, Geoje City, South Gyeongsang Province. (Yonhap)
The fund is designed to mobilize public financial backing for South Korean firms investing in U.S. maritime infrastructure, including shipyard development, vessel construction, workforce training, and maintenance services.
While the fund’s operational blueprint has yet to be finalized, the task force is expected to play a key role in both gathering market intelligence and relaying industry needs to the Korean government.
“This is still in the early stages, but the task force could evolve into a channel to consolidate shipbuilders’ voices and ensure alignment with government strategy,” said one industry official.
A senior government source emphasized that while funding is critical, “identifying and structuring viable projects will be just as important” to ensure the initiative’s long-term success.
A ship under construction is seen at HD Hyundai Heavy Industries in Dong-gu, Ulsan. (Yonhap)
The three major shipbuilders are pursuing distinct approaches to the U.S. market. Hanwha Ocean has taken the boldest step by acquiring the historic Philly Shipyard for $100 million. It is ramping up production capacity from 1–1.5 ships per year to 10 by 2035, with plans for local investment, job creation, and technology transfer.
HD Korea Shipbuilding is forging collaborative ties with U.S. counterparts such as Edison Chouest Offshore, with which it will co-build dual-fuel LNG container vessels. It is also working with defense contractor Huntington Ingalls to share capabilities that could reduce costs and improve delivery schedules.
Samsung Heavy Industries, meanwhile, confirmed during a recent earnings call that it is exploring a range of cooperative models with American shipyards, including joint construction and expanded business development.
As MASGA moves from diplomatic headline to industrial blueprint, Seoul’s coordinated approach—balancing industry input with government direction—is seen as essential for maximizing the fund’s potential and strengthening strategic ties between two of the world’s leading maritime powers.
M. H. Lee (mhlee@koreabizwire.com)
