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Korea Herald
a day ago
- Business
- Korea Herald
Proposed US shipbuilding law reforms could put wind in MASGA sails
Moves to revise century-old shipmaking laws aim to strengthen US and allied naval capabilities Korea's 'Make American Shipbuilding Great Again' strategy, or 'MASGA," is gaining momemtum as the two countries' authorities recently saw eye to eye on the need to revise the United States' legislation to allow more practical shipbuilding collaboration. According to the Defense Acquisition Program Administration on Friday, Vice Minister Kang Hwan-seug met with Jason Potter, assistant secretary of the US Navy's research, development and acquisition, in Washington earlier in the week and discussed cooperation in naval shipbuilding and maintenance, repair and overhaul services. The Korean authorities told Potter about ways its shipbuilding industry could help maintain and strengthen the US Navy, such as by producing block modules for ships and delivering them to US shipyards for final assembly. The DAPA said the two sides agreed that regulations, such as the Byrnes-Tollefson Act whih requires US warships to be built at US shipyards, need to be eased to allow more shipbuilding cooperation. They decided to set up a new working-level group to discuss further specifics for that matter. US lawmakers have also been taking action to expand shipbuilding ties with US allies. US Reps. Ed Case of Hawaii and Jim Moylan of Guam proposed the Merchant Marine Allies Partnership bill on Aug. 1. The bill targets Merchant Marine Act of 1920, known as the Jones Act, which limits domestic shipping to US-built, US-flagged vessels that are owned by US citizens and crewed by permanent US residents. The newly proposed bill exempts the current 50 percent import duty on major vessel modifications, as long as the work is performed at shipyards in US allies. The legislation would allow ships built in those nations to qualify for the US domestic trade while laying out a pathway for foreign-built and foreign-crewed vessels operated by companies in allied countries to take part in US domestic trade. 'According to the Grassroot Institute of Hawaii, maritime employment in the US shipbuilding and repair sector has declined by 15 percent over the past 23 years,' said Case. 'The Merchant Marine Allies Partnership Act is a bipartisan, commonsense step toward maritime policy that reflects 21st-century challenges and opportunities.' US Sen. Mike Lee of Utah presented Ensuring Naval Readiness Act in February this year, aiming to authorize exceptions to the prohibition on the construction of US Naval fleets at foreign shipyards. Meanwhile, Lee So-young, a military judge, pointed out that the Korean government and companies should take proactive measures to back up such efforts to amend US laws. 'Stakeholders in the US shipbuilding sector realize that outsourcing the US naval warships is a serious threat to the US shipbuilding industry and oppose the idea while demanding more investments in the US shipbuilding infrastructure,' said Lee in an article published in the Journal of the Korea Association of Defense Industry Studies. 'The (Korean) government needs to strongly lobby and make an appeal that it is better for the US if Korean shipbuilders take charge of building US warships. Korea should raise US law experts and get advices on what steps to take during each phase of legislation.' Lee added that Korean shipbuilders should look to secure an edge over Japanese and Indian rivals in advance as the competition is expected to heat up once the US warship market becomes open for overseas shipyards in allied countries. Korea previously credited the MASGA initiative as one of the key factors in cutting the final tariff deal with the US at the end of last month as US President Donald Trump repeatedly stressed his administration's drive to revive the American shipbuilding sector. Seoul pledged a $150 billion shipbuilding cooperation fund for Korean shipbuilders to invest in the US and support the American shipbuilding sector's revitlaization.
Korea Herald
30-07-2025
- Business
- Korea Herald
DAPA to streamline procedures for joint civil-military space projects
Military plans to operate at least 30 ultrasmall satellites by 2030 South Korea's arms procurement agency is seeking to streamline the management of joint civil-military space development projects, including the planned operation of ultrasmall satellites, in a bid to reduce inefficiencies caused by overlapping regulations. The Defense Acquisition Program Administration said Wednesday it has commissioned a study to establish standardized procedures for projects jointly pursued and operated by the government, military and industries. DAPA explained that such projects often suffer from inefficiencies, such as clashes between civilian and military regulations that often lead to procedural conflicts. A key example of such a project is the military's plan to launch a cluster of at least 30 ultrasmall satellites by 2030 into outer space. The system is designed to closely monitor North Korea and swiftly detect signs of potential provocations. The program is jointly led by DAPA, the Korea Aerospace Administration and the Korea Coast Guard, with participation from research institutions including the Agency for Defense Development and the Korea Aerospace Research Institute. Industry partners include Hanwha Systems and Korea Aerospace Industries. Pointing to similar challenges observed in previous joint projects, including the Surion helicopter and light armed and civil helicopter programs, DAPA stressed the need for improved oversight. "As civil-military space programs continue to grow, standardized project management is essential to ensure smooth operational deployment (of such military assets)," a DAPA official said. "The goal is to avoid redundant oversight while achieving public objectives." DAPA aims to complete the standardization of procedures and introduce related administrative rules next year.
Korea Herald
29-07-2025
- Business
- Korea Herald
S. Korea in talks to launch NATO defense consultative body in September
South Korea is in talks with NATO to launch a working-level defense consultative body as early as September, through which it would seek to expand opportunities for local defense firms to enter the European market. The inaugural session of the consultative body is being discussed for late September in Brussels, Belgium, with final arrangements still being coordinated by the Defense Acquisition Program Administration and NATO, according to an official at the arms procurement agency on Tuesday. The consultative body would aim to strengthen cooperation across a wide range of defense areas, including joint weapons acquisition and research and development, logistics support, standardization and airworthiness certification, and training and education. Its launch is expected to provide South Korean defense companies with an additional export channel to NATO's European member states, the official said. The consultative body was first proposed by DAPA Commissioner Seok Jong-gun during his visit to Belgium in April. It gained traction following a meeting between National Security Office Director Wi Sung-lac and NATO Secretary-General Mark Rutte in The Hague on the sidelines of the NATO summit in June. During Wi's visit to The Hague, the two sides also discussed the possibility of Seoul's participation in NATO's High Visibility Projects, a next-generation program focused on the joint development and procurement of advanced military capabilities. With NATO member states set to boost their defense budgets, the European market is emerging as a strategic opportunity for South Korean defense exporters. In June, NATO member states agreed to raise their total defense-related expenditure to 5 percent of gross domestic product by 2035, including 3.5 percent allocated to defense budgets and 1.5 percent to indirect investments, apparently in response to US President Donald Trump's demands that they increase defense spending. The projected expansion of the European defense market is seen as a timely opportunity for South Korean defense firms, which are known for their cost competitiveness and rapid delivery, the DAPA official added.
Korea Herald
28-07-2025
- Business
- Korea Herald
South Korea deploys upgraded Cheongung defense system
South Korea has successfully deployed its enhanced air defense system capable of striking down ballistic targets, the state arms procurement agency said Monday. The first batch of the new Cheongung-II system, upgraded from the Cheongung-I, has been successfully deployed to the South Korean military and is projected to be fully installed and in operation by 2027, according to the Defense Acquisition Program Administration. The upgraded system is effective against both aircraft and ballistic targets and is designed to intercept incoming missiles at altitudes of 15 kilometers and ranges of 40 km. It is equipped with a high-performance multi-function radar and improved interceptor missiles. The new system is also known as M-SAM 2 to distinguish it from Cheongung-I, the first locally developed surface-to-air missile system in South Korea. The Cheongung-I system focuses on striking a hostile aircraft at an altitude of up to 40 kilometers. DAPA said that a total of 645 billion won ($467 million) was invested in the project to upgrade the air defense system. The upgrade project helped them to significantly save costs, compared to deploying new air defense systems, the agency noted. In 2024, South Korea exported 10 Cheongung-II missile defense systems to Saudi Arabia under a $3.2-billion deal. The Cheongung-II system has been previously sold and exported to the United Arab Emirates in 2022 under a separate $3.5 billion deal.
Korea Herald
23-07-2025
- Business
- Korea Herald
S. Korea to attend intl. defense exhibition in Turkey this week
South Korea will participate in a global defense industry fair in Turkey this week to promote homegrown defense products and boost their export bids, the arms procurement agency said Wednesday. The International Defence Industry Fair, which opened Tuesday (local time) in Istanbul for a five-day run, will bring together defense officials from more than 80 countries, including North Atlantic Treaty Organization member states. Six South Korean small and medium-sized enterprises will showcase homegrown defense technologies aimed at entering the European and Middle Eastern markets, the Defense Acquisition Program Administration said. DAPA said it plans to operate joint booths at upcoming defense exhibitions in Poland in September and the United States in October. (Yonhap)
