Posted on March 9, 2026
By Park Hyung-yun
South Korea’s ruling Democratic Party of Korea is pushing the “Korea-US Shipbuilding Cooperation and Support Special Act” (MASGA Special Act) as Congress moves to provide backing amid the Trump administration’s pressure for additional tariff hikes under Section 301 of the Trade Act. The initiative aims to demonstrate firm commitment to cooperation with the United States by preemptively establishing legal support frameworks, as the Korea-US shipbuilding partnership—represented by MASGA (Make American Shipbuilding Great Again)—is expected to benefit both nations.
According to ruling party sources on the 8th, the MASGA Special Act proposed by Democratic Party lawmaker Huh Sung-moo reflects this commitment. The legislation mandates that the five-year Korea-US shipbuilding cooperation master plan include provisions for mutual development and enhanced cooperation between the two countries. The plan broadly covers future cooperation areas from supply chain development including joint procurement of shipbuilding equipment to transitioning toward smart and eco-friendly shipbuilding industries.
A fund to support MASGA will also be established. The special act includes provisions enabling the government to create and operate a fund supporting Korea-US shipbuilding industry cooperation projects. The Korea Development Bank, Export-Import Bank of Korea, Korea Trade Insurance Corporation, and Korea Technology Finance Corporation will be eligible to participate in the fund. An official from Rep. Huh’s office explained, “We expect to create a fund of at least 300 billion to 500 billion won.” Additionally, a Shipbuilding Industry Cooperation Fund will be established using government budget allocations and industry contributions.
The bill also contains a blueprint for strategic development of the domestic shipbuilding industry. The legislation establishes grounds for designating shipbuilding industry specialized zones and supporting dedicated maintenance, repair, and overhaul (MRO) complexes. The Minister of Trade, Industry and Energy can designate and operate regional shipbuilding specialized zones, within which dedicated naval vessel management complexes can be developed to foster the naval MRO industry. The naval MRO sector is considered a prime beneficiary of the MASGA project. A shipbuilding industry official said, “The domestic shipbuilding industry is pursuing a Master Ship Repair Agreement (MSRA) with the US Navy. If the special act passes and dedicated naval vessel management complexes are established, we could achieve significant results.”
The special act also includes provisions for establishing a joint Korea-US shipbuilding R&D center, dispatching and training specialized personnel, administrative support for acquiring US shipyard corporations, and supporting industrial technology security systems. Rep. Huh emphasized, “The MASGA project is a key priority of the Lee Jae-myung administration and a large-scale cooperation program based on the military and security alliance with the United States.”
The MASGA Special Act is expected to undergo full review as follow-up legislation once the Special Act on Investment in the United States passes the National Assembly plenary session on the 12th. It will likely be discussed in conjunction with a separate MASGA Special Act proposed by Democratic Party lawmaker Lee Un-ju. A Democratic Party floor official predicted, “The bill could be processed before the local elections.”
Meanwhile, the government is making all-out efforts to persuade the United States in response to tariff pressure. Trade, Industry and Energy Minister Kim Jung-kwan and Trade Negotiations Chief Yeo Han-koo visited Washington, D.C. on the 6th and met separately with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
Upon returning to Incheon Airport after his US visit, Minister Kim told reporters, “I met with Secretary Lutnick and explained the legislation our National Assembly will pass next week. The United States highly appreciated it and expressed gratitude.”
He continued, “I was told that if the law (Special Act on Investment in the United States) passes in Korea and the contents of negotiations are implemented, there would likely be no Federal Register publication regarding tariff increases.”
Trade Negotiations Chief Yeo also agreed with Representative Greer to convene the Korea-US Free Trade Agreement Joint Committee at an appropriate time to finalize implementation plans for non-tariff areas. Regarding the Section 301 investigation petition by Coupang’s investor, he conveyed the government’s position that the matter should not negatively affect bilateral trade relations. Minister Kim and Chief Yeo are scheduled to attend a plenary meeting of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee on the 9th.
