South Korea has proposed a multibillion-dollar shipbuilding investment package in the United States as part of ongoing negotiations to avert steep US tariffs as the Aug. 1 deadline for such a deal nears, government sources said Monday, noting the proposal appears to have been well received.
According to the multiple sources, Industry Minister Kim Jung-kwan held talks with US Commerce Secretary Howard Lutnick on Friday in New York, during which he presented the proposal, dubbed "Make American Shipbuilding Great Again".
The MASGA project, whose name is inspired by US President Donald Trump's slogan "Make America Great Again", involves large-scale investments by South Korean private shipbuilders in the US The package includes not only capital investment but also financial support, such as loans and guarantees backed by Korean institutions.
Public financial institutions, such as the state-run Export-Import Bank of Korea, are being considered as potential participants in providing financial support for the MASGA initiative, the source said.
Lutnick, who is seen as a key decision-maker in the bilateral tariff negotiations, reportedly responded positively to the proposal and expressed satisfaction with Seoul's offer.
As part of the ongoing talks, Finance Minister Koo Yun-cheol is expected to visit the US later this week and is likely to meet with US Treasury Secretary Scott Bessent on Thursday.
Seoul aims to finalize a trade agreement with Washington before the Aug. 1 deadline to reduce the 25 percent reciprocal tariff and sector-specific duties imposed on South Korean goods under the Trump administration.
The reciprocal tariffs were initially implemented April 9 but were immediately suspended by President Trump for 90 days to allow for negotiations. The suspension has since been extended, but Washington indicated plans to resume enforcement starting Aug. 1 unless a deal is reached. (Yonhap)
