Korean and U.S. industry ministers meet in Washington

The Korean and U.S. industry ministers have met for the first time and agreed to establish a working-level channel to discuss cooperation in the shipbuilding industry and tariff measures. The U.S. Navy Secretary nominee also highlighted the importance of Korean shipbuilding companies' technology and capital investment, signaling that cooperation in the shipbuilding sector is expected to gain momentum.

According to the Korean Ministry of Trade, Industry, and Energy on Friday, Minister Ahn met with U.S. Secretary of Commerce Rutnik at the Commerce Department’s conference room in Washington on Thursday (local time) and requested a tariff exemption from the U.S. “Minister Ahn and Secretary Rutnik discussed cooperation in the shipbuilding sector and agreed to establish a working-level consultation channel on tariff measures,” a South Korean ministry official explained.

This meeting marked the first time that the industry ministers of the two countries have met since the launch of the Trump administration's second term. The meeting, attended by the Korean Ambassador to the U.S., Cho Hyun-dong, and others, lasted about an hour. Discussions on industrial cooperation, particularly in shipbuilding, were reportedly held in a mutually amicable atmosphere. Minister Ahn shared Korea’s overall preparations, including plans to form a government-wide task force for the U.S.-Korea shipbuilding cooperation. Secretary Rutnik responded positively, indicating that both sides would push forward concrete cooperation through the working-level channel.

President Trump has emphasized cooperation with Korea’s shipbuilding industry multiple times since his time as president-elect. Given the decline of the U.S. shipbuilding industry, which has significantly weakened its ability to meet the Navy’s vessel supply needs, shipbuilding has become a key bargaining chip for Korea. John Phelan, the U.S. Navy Secretary nominee, highlighted the importance of leveraging allied shipbuilding capabilities during his confirmation hearing before Thursday's Senate Armed Services Committee. In response to a question about cooperation to utilize allied nations’ shipbuilding capacities, he said, “Hanwha has recently bought the Philadelphia shipyard (Philly Shipyard). They are going to look at enhancing it and making it better. So bringing their capital and skill sets here, I think, would be important.” Last year, Hanwha Ocean acquired 100% of the shares in Philly Shipyard (40% by Hanwha Ocean and 60% by Hanwha Systems).

Meanwhile, on the same day, Choi Sang-mok, Korea’s Acting President and Deputy Prime Minister for Economic Affairs, also held a virtual meeting with Scott Bessent, the newly appointed U.S. Treasury Secretary. During the meeting, they requested that the U.S. consider Korea’s contributions to the American economy when making policy decisions regarding tariffs and other trade measures.


세종=김수연기자 syeon@donga.com