Kim Jung-Kwan Returns from North America Visit: "First U.S. Investment Project Still Under Negotiation"

"Commercial Viability as a Fundamental Principle"

Consensus Reached on Expanding Cooperation in Shipbuilding, Nuclear Power, and Energy

Plans Underway to Establish Korea-U.S. Shipbuilding Cooperation Center

Kim Jungkwan, Minister of Trade, Industry and Energy, returned to Korea on the 10th through Incheon International Airport after completing a visit to the United States and is answering questions from reporters. Photo by Yonhap News Agency

Kim Jungkwan, Minister of Trade, Industry and Energy, returned to Korea after completing his visit to Washington, D.C., stating, "The first strategic investment project with the United States is still under negotiation," and added, "We are continuing discussions with the U.S. side based on the principle of commercial viability."

On May 10, upon his arrival at Incheon International Airport, Minister Kim told reporters, "The specific project is still in the negotiation stage," but emphasized, "The United States also has high expectations for the role and participation of Korean companies."

He went on to say, "Commercial viability is the basic principle, and the U.S. side fully understands this," adding, "I have sufficiently explained that, from a business perspective, it is difficult to proceed unless the project is commercially feasible."

Minister Kim also noted, "During this visit to the United States, I was able to confirm a significant consensus with key U.S. government officials on the need for cooperation in shipbuilding, nuclear power, energy, and digital sectors," and highlighted, "In particular, the U.S. showed very high interest and expectations in the shipbuilding sector."

He also addressed the recent controversy over Coupang related to digital regulations in the United States. Minister Kim said, "In fact, I was the one who first raised the issue of Coupang and explained the position of the Korean government," and added, "It seems this served as an opportunity to resolve some of the misunderstandings held by the U.S. side."

Previously, from May 6 to 9 (local time), Minister Kim visited Washington, D.C., where he met with U.S. Secretary of Commerce Howard Lutnick, Office of Management and Budget (OMB) Director Russell Vought, and Secretary of Energy Chris Light to discuss ways to strengthen strategic investment projects with the United States and industrial and trade cooperation.

The core of this visit to the United States was to establish a Korea-U.S. shipbuilding cooperation framework. Minister Kim met with Secretary Lutnick to explain the Korean government's progress in enacting follow-up legislation and establishing a promotion system after the passage of the Special Act on Investment in the United States, and discussed specific directions for the strategic investment project in the shipbuilding and energy sectors.

During the meeting, the two sides signed a Memorandum of Understanding (MOU) for the "Korea-U.S. Shipbuilding Partnership Initiative" between the Ministry of Trade, Industry and Energy and the U.S. Department of Commerce. Under this MOU, the two countries agreed to establish the "Korea-U.S. Shipbuilding Cooperation Center" in Washington, D.C., to jointly pursue research and development (R&D), direct investment, supply chain cooperation, technology exchange, and professional workforce training. Industry observers expect that this center will serve as a key base for the practical implementation of the Korean government's MASGA (Make American Shipbuilding Great Again) initiative.

Minister Kim also requested active support at the U.S. government level from Director Vought to ensure the smooth progress of the MASGA project. The OMB is a core agency overseeing the U.S. federal budget and policy coordination, and is expected to play an important role in the budget support and institutional design process for related projects in the future.

Discussions on energy cooperation also continued. Minister Kim met with Secretary Light to review current issues regarding cooperation in the energy sector, including nuclear power, and discussed ways to expand bilateral cooperation in the nuclear power industry. With new nuclear power plants and the small modular reactor (SMR) market expanding in the United States, the possibility of Korean companies participating was reportedly a major agenda item.

In addition, Minister Kim held a virtual meeting with U.S. Senator Bill Hagerty of Tennessee, a well-known supporter of Korea, to discuss cooperation in the nuclear power and digital sectors, as well as other trade issues. The Ministry of Trade, Industry and Energy explained that it has also conducted outreach activities to expand a favorable cooperative foundation within the U.S. Congress and to increase mutual understanding on digital regulatory issues.

This content was produced with the assistance of AI translation services.