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Korea to Support U.S. Shipbuilding with $150bn Investment
South Korea's proposed Make American Shipbuilding Great Again (MASGA) initiative—designed to counter former U.S. President Donald Trump’s 25% tariff—has finally taken concrete shape.
According to industry sources, President Trump announced on the 30th (local time) that he would lower reciprocal tariffs on South Korea from 25% to 15%.
Posting on Truth Social, Trump stated, “We’ve secured a $350 billion investment fund from South Korea and a commitment to purchase $100 billion worth of LNG.”
Of the $350 billion investment Korea has pledged, $150 billion is expected to be allocated specifically to a shipbuilding cooperation fund.
Previously, the MASGA package proposed by the Korean government in last-minute negotiations with the U.S. was said to include local investment, core technology transfers, and workforce training.
Plans reportedly include:
Investment: building new shipyards and acquiring existing ones,
Technology: transferring Korean-style production management and process optimization systems,
Workforce: training U.S. shipbuilding personnel and supporting the development of digital shipyards.
Back in April, Trump signed an executive order aimed at revitalizing domestic shipbuilding and countering China’s maritime dominance. In early May, bipartisan members of Congress jointly introduced the SHIPS for America Act, a bill focused on strengthening U.S. shipbuilding and port infrastructure for national prosperity and security.
However, the U.S. faces considerable challenges. Its infrastructure is severely outdated, making it difficult to rebuild the shipbuilding industry independently. According to the U.S. Department of Transportation (USDOT), the number of shipyards has dropped from a peak of 414 to just 21 today, with annual ship production at around five vessels.
Under these circumstances, U.S. cooperation with South Korea—the world’s second-largest shipbuilding nation—is seen as vital. Among America’s allies, Korea is the only country capable of building the types of ships the U.S. requires. The Korean shipbuilding industry leads the global newbuild market, boasting cutting-edge technologies in LNG carriers, ultra-large container ships, and eco-friendly vessels.
However, Korea’s role within the U.S. is likely to remain limited, with greater emphasis placed on investment into American shipyards rather than direct operations on U.S. soil.
In the long term, some warn that Korea could be fostering future competitors within the U.S. Wall Street analysts have also raised concerns that, like Japan’s earlier $550 billion investment to secure the same 15% tariff rate, Korea’s proposal may lack enforceable binding commitments.
Commenting on the agreement, President Lee Jae-myung stated, “This outcome reflects the convergence of America’s policy goal of rebuilding manufacturing and Korean firms’ aim to strengthen their competitiveness in the U.S. market.”
Written by Jeff Kim
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