On Thursday, Korean state policy lenders and shipbuilders joined forces to create a financing alliance to carry out the US$150 billion shipbuilding initiative outlined in the Korea-US memorandum of understanding on strategic investments. This marks the first step in the “MASGA” (Make American Shipping Great Again) project, which the Korean government proposed to the US. Unlike Korea’s US$200 billion investment in US companies, Korean companies will collect all the profits of this joint shipping initiative without having to split them with the US. A signing ceremony for the launch of the initiative was held at the Export-Import Bank of Korea’s headquarters in Seoul’s Yeouido District, with Finance Minister Koo Yun-cheol, Financial Services Commission Vice Chairman Kwon Dae-young, and Park Dong-il, the head of industrial policy at the Industry Ministry. The MOU was signed by the Korea-US Strategic Investment Corp., which was founded on June 18 to facilitate Korean investment in the US, as well as financial institutions including the Export-Import Bank of Korea, the Korea Development Bank, the Korea Trade Insurance Corp., and the Korea Ocean Business Corp., and three shipbuilders, including HD Hyundai Heavy Industries Co., Samsung Heavy Industries Co. and Hanwha Ocean Co. According to the MOU, these organizations and agencies will form a consultative body for Korea-US shipbuilding cooperation to jointly share information, explore business opportunities, and facilitate policy financing support. “Not only will Korean shipbuilders, which are the best in the world, help rebuild American shipbuilding, but this investment will be a mutually beneficial one that will secure new orders and markets across our shipbuilding ecosystem from large shipyards, small and medium-sized companies, and equipment suppliers,” Koo said. The minister then urged institutions to “provide sufficient funding in a timely manner,” asking them to “actively seek financial support measures that can help share the risks and uncertainties of initial investments that individual companies would find difficult to bear on their own.” Korea’s investment in US shipbuilding cooperation will be carried out by supporting domestic shipbuilders through guarantees, ship financing, and other means. Under this arrangement, all profits generated will go to Korean companies. The US will provide support in the form of land, water, electricity and procurement contracts necessary for the project. President Lee Jae Myung recently revealed that US President Donald Trump asked if it was possible to “quickly build 10 warships for the US Navy,” at the Group of Seven summit in France. According to America’s Maritime Action Plan, published by the White House in February, the US constructs less than 1 percent of commercial ships globally. Out of its 66 total shipyards, only eight can build vessels greater than 400 feet (122 meters) in length. The shortage of skilled workers has also been noted as a significant hurdle for America’s shipbuilding industry.