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By Choi Kyong-Ae and Song Sang-ho

SEOUL/WASHINGTON, July 23 (Yonhap) -- South Korea and the United States on Thursday launched a shipbuilding cooperation center in Washington to facilitate the planned US$150 billion investment in the U.S. shipbuilding sector that Seoul committed to under last year's bilateral trade and investment deal.

Senior officials and industry leaders from the two countries joined an event marking the opening of the Korea-U.S. Shipbuilding Partnership Center (KUSPC), a platform to advance the "Make American Shipbuilding Great Again (MASGA)" initiative aimed at revitalizing America's shipbuilding industry.

The opening came two months after the two countries signed a memorandum of understanding (MOU) in May to establish the center and strengthen bilateral shipbuilding cooperation.

In his welcoming remarks, Industry Minister Kim Jung-kwan called the center a symbol of South Korea's "strong" commitment to supporting America's shipbuilding industry.

"Korea strongly supports President Trump's maritime action plan. We are ready to work side by side with the U.S. Today is the beginning of a new chapter -- a new chapter for our shipbuilding industry, a new chapter for our maritime partnership and a new chapter for our alliance," he said.

At the center of the new chapter is the MASGA initiative, the minister said, describing it as a "bold" vision that he said will strengthen American shipbuilding and its maritime power, and support regional economies across the United States.

"Korea is ready to be America's strongest partner in making this vision real," he said. "Together with (Commerce) Secretary (Howard) Lutnick and our U.S. colleagues, we will deliver results. We will build naval vessels. We will build LNG carriers and we will build them here in America." LNG stands for liquefied natural gas.

Kim highlighted Seoul's commitment to fulfilling its investment commitment for the MASGA initiative, noting that the center will promote joint research and development, support technology sharing and nurture thousands of skilled workers.

"Korean companies are already developing a wide range of projects to acquire, expand and modernize shipyards across the U.S.," he said. "The financial institutions .... will work together as one team to support this MASGA investment."

In his congratulatory remarks, Lutnick stressed the importance of producing tangible results from shipbuilding cooperation with South Korea.

"The center is not an outcome. It is the most important work that produces the outcome of how many ships that are built," he said.

"Talking is not a thing. It sets the stage, but the reality is (that) it is vital for America to produce ships in America. Not talk about producing ships in America, not having meetings about ships in America, but actually building ships in America."

The secretary also affirmed Washington's commitment to help tackle regulatory obstacles that Korean companies may encounter while investing activities in the U.S.

"We are committed to removing barriers to production," he said. "If, when you are building and bumping into roadblocks, or you are feeling that the environment is not completely embracing of you, call the Department of Commerce. We will clear the regulatory roadblocks for you to build in America."

Among the prominent attendees was new U.S. Ambassador to South Korea Michelle Steel. She hailed Korea's shipbuilding cooperation with the U.S. as an expansion of the bilateral alliance into a "new" and "important" territory.

"What we have discussed today is proof that our alliance is expanding into a new, incredibly important territory: the vitalization of the American industry, including in shipbuilding," she said in her first major public remarks since her Senate confirmation last month.

She also highlighted that the launch of the KUSPC exemplifies what the two countries' partnership can achieve when they align their industrial strategies toward common goals.

"This undertaking is part of a much larger vision -- one in which Korea's investment in American manufacturing, shipbuilding and strategic sectors works (for) a fair, reciprocal and resilient trade relationship between our two nations," she said.

At the event, South Korea's Ambassador to the U.S. Kang Kyung-wha said that the launch of the KUSPC is a "major milestone," calling the launch a "starting point for creating a safe, resilient and trusted joint maritime industrial ecosystem."

"To this day and into the future, ship production, maintenance, and repair remain critically important for national security, global trade, and economic stability," she said. "And that is why the opening of the KUSPC is such a uniquely important milestone and opening up a new chapter in our two countries' long history of cooperation."

The Defense Acquisition Program Administration (DAPA), South Korea's state arms procurement agency, said it will explore opportunities for cooperation in the naval shipbuilding sector and help Korean companies join U.S. shipbuilding and defense supply chains.

In the presence of Kim and Lutnick, the two allies signed 15 MOUs in four areas: establishing "Team Korea" to promote the shared growth of the South Korea-U.S. shipbuilding industries; strengthening supply chain cooperation; workforce training; and joint technology development.

Team Korea comprises the KUSPC; three Korean shipbuilders -- HD Hyundai Heavy Industries Co., Hanwha Ocean Co. and Samsung Heavy Industries Co.; the Korea Offshore & Shipbuilding Association (KOSHIPA); and the Korea Research Institute of Ships & Ocean Engineering (KRISO).

kyongae.choi@yna.co.kr

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