Policy Financial Institutions and Top Three Shipbuilders Join Forces to Support $150 Billion Korea-U.S. Shipbuilding Cooperation

Policy financial institutions, including the Export-Import Bank of Korea, and Korea's three major shipbuilders are forming a consultative body to support the Korea-U.S. shipbuilding cooperation investment worth 150 billion dollars, and they will provide joint financial support for the initiative.

On the 25th, at the headquarters of the Export-Import Bank of Korea in Yeouido, Seoul, Korea-US Strategic Investment Corporation, Korea Development Bank, Korea Trade Insurance Corporation, Korea Ocean Business Corporation, HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean signed a Memorandum of Understanding for the Effective Implementation of Korea-US Shipbuilding Cooperation Investment. Provided by the Export-Import Bank of Korea.

The Export-Import Bank of Korea announced on June 25 that it signed a memorandum of understanding for the effective implementation of Korea-U.S. shipbuilding cooperation investment at its headquarters in Yeouido, Seoul, with the participation of the Korea-U.S. Strategic Investment Corporation, Korea Development Bank, Korea Trade Insurance Corporation, Korea Ocean Business Corporation, HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean.

This agreement was established to effectively implement the Korea-U.S. shipbuilding cooperation investment worth 150 billion dollars, which is being promoted as a follow-up measure to last October's Korea-U.S. trade and investment tariff agreement signed by the government.

The signing ceremony was attended by the heads of five policy financial institutions and the CEOs of the major Korean shipbuilders. From the government, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yoon Cheol, Vice Chairman of the Financial Services Commission Kwon Dae Young, and Park Dongil, policy chief at the Ministry of Trade, Industry and Energy, were present.

With this agreement, the policy financial institutions and the three shipbuilders will establish the "Korea-U.S. Shipbuilding Cooperation Investment Consultative Body" to share project information, discover new business opportunities, and jointly prepare policy financial support plans for each project. The Export-Import Bank of Korea will serve as the secretariat for the consultative body, overseeing both internal and external communication and managing the overall progress of the projects.

Korean shipbuilders are expected to invest in the acquisition, expansion, and modernization of U.S. shipyards to meet the U.S. government's demand for shipbuilding cooperation, and participate in the construction, maintenance, repair, and overhaul (MRO) of U.S. naval vessels and merchant ships. Policy financial institutions are considering providing funding not only for Korean shipbuilders' investments in the U.S., but also for U.S. ship ordering agencies. They plan to minimize funding gaps by tailoring optimal financial support methods according to the type and structure of each project.

Following the signing ceremony, the first regular consultative meeting was also held to discuss measures to vitalize shipbuilding cooperation investment. The three shipbuilders shared the status of their respective U.S.-related projects, while the policy financial institutions discussed directions and strategies for financial support according to project type. Hwang Ki Yeon, President of the Export-Import Bank of Korea, said, "With this agreement, we will work closely with the participating organizations so that K-Shipbuilding can successfully enter the U.S. shipbuilding market and secure new growth engines," and added, "As Korea's leading ship finance institution, we will actively support the government's Korea-U.S. shipbuilding cooperation investment based on our accumulated expertise and know-how."

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