Policy lenders, companies sign MOU for Korea-U.S. shipbuilding cooperation

Korea's policy lenders and major shipbuilders on Thursday signed a memorandum of understanding to effectively implement the Seoul-Washington shipbuilding cooperation initiative worth $150 billion, officials said.

The state-run Korea-U.S. Strategic Investment Corporation, the Export-Import Bank of Korea, the Korea Development Bank, the Korea Trade Insurance and the Korea Ocean Business Corporation are parties to the MOU, as are HD Hyundai Heavy Industries, Samsung Heavy Industries and Hanwha Ocean.

Under the MOU, the policy lenders, institutions and shipbuilders will form a consultative body for Korea-U.S. shipbuilding cooperation, taking the lead in information sharing among participants, exploring business opportunities and facilitating policy financing support.

The MOU signing comes after Korea pledged to invest $150 billion in the U.S. shipbuilding sector as part of last year's trade deal, which committed the Asian country to investing a total of $350 billion in the United States, with an annual cap of $20 billion.

"The shipbuilding cooperation is one of the two pillars of Korea-U.S. strategic investment," Finance Minister Koo Yun-cheol said during a signing ceremony in Seoul.

"This will be a mutually beneficial investment that will secure new orders and markets across our shipbuilding ecosystem, from large shipyards to small- and medium-sized companies and equipment suppliers."

Yonhap