S.Korea, US affirm partnership to usher in US shipbuilding, manufacturing renaissance

WASHINGTON, D.C. -- South Korean President Lee Jae Myung on Monday reaffirmed Seoul's commitment to partner with Washington to revive the US manufacturing sector, particularly shipbuilding, as the Make America Shipbuilding Great Again (MASGA) initiative topped the agenda in his first summit with US President Donald Trump.

During their meeting at the White House, Trump expanded the bilateral agenda to include Korea's potential purchases of US-made arms and participation in the $45 billion Alaska liquefied natural gas (LNG) project, seen as fresh requests from Washington.

“A renaissance is unfolding not only in (US) shipbuilding, but across the manufacturing sector as well,” Lee said during the summit. “We hoped South Korea will be part of the process.”

The so-called MASGA project was central to the two countries’ tariff deal sealed late last month, under which Korea pledged $150 billion to support the US shipbuilding industry.

In their bilateral talks, Trump said South Korean companies will build shipyards in the US, while Washington is considering buying Korean-made vessels.

It marked the first time Trump publicly expressed an intention to purchase Korean-built vessels.

On Tuesday, Lee is scheduled to visit the Hanwha Philly Shipyard in Philadelphia, which Korea's Hanwha Group acquired for $100 million in December in its foray into the US market.

US ARMS

Trump underscored Korea’s role as a major buyer of US military equipment, touting the superiority of US-made defense systems and citing the B-2 stealth bomber as a prime example.

The B-2, also called the Northrop B-2 Spirit, is considered one of the Pentagon’s most strategic assets and has never been sold to a foreign country. It recently flew from the US mainland to conduct strikes on Iranian nuclear facilities.

Analysts said Trump’s remarks may signal renewed pressure on Seoul to expand its purchases of American-made weaponry.

ALASKA LNG PROJECT

Trump also cited the Alaska LNG project as another strategic avenue to further deepen US-Korea trade cooperation.

For the energy project, he said Washington would pursue a joint venture with Seoul, similar to one already established with Tokyo, adding that Seoul is a potential customer of the LNG to be drilled for in Alaska.

NORTH KOREA

Security was also high on the agenda at their summit.

Lee proposed that Trump meet with North Korean leader Kim Jong Un as a “peacemaker” for the divided Korean Peninsula, adding that he would support their dialogue as a “pacemaker.”

“Improving relations between South and North Korea would be difficult on my watch. President Trump is the only person who can break the stalemate," Lee said.

In response, Trump said he hoped to meet Kim within the year, though the timing remained uncertain.

The US president underscored trilateral ties with South Korea and Japan as essential to making real progress in relations with the North.

Trump said he plans to visit South Korea soon to hold a trade meeting and would join the upcoming Asia-Pacific Economic Cooperation (APEC) summit during that trip.

The APEC summit is set to take place in Gyeongju, South Gyeongsang Province, Korea, at the end of October.

Trump also said the US would engage in serious talks on various issues, including trade, which analysts said hinted at further negotiations beyond tariffs, potentially covering non-tariff barriers as well.

US TROOPS

Asked whether he might scale back US troops stationed in South Korea for strategic flexibility, Trump declined to answer directly, saying the two countries are friends.

However, he demanded that Seoul transfer ownership rights of the military base used by US forces to Washington.

Joining Monday's summit were the chiefs of staff to both presidents, along with their senior advisers on foreign affairs and trade.

Write to Jae-Young Han, Sang-Eun Lucia Lee, Dae-Hoon Kim and Ri-Ahn Kim at jyhan@hankyung.com
 

Yeonhee Kim edited this article.