The consultative body of the three shipbuilders, formed to jointly discuss areas of Korea-U.S. shipbuilding cooperation, is reportedly not operating smoothly. Because the MASGA (Make American Shipbuilding Great Again) project requires collaboration among corporations due to its large investment scale, cooperation is necessary, but each party ultimately has to compete. Differences in each company's investment and market entry strategies for the United States are also cited as reasons why operating the three-company task force (TF) is difficult.
On the 3rd, according to the Ministry of Trade, Industry and Energy and the shipbuilding industry, the public-private consultative body for the MASGA project, which includes shipbuilders such as HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries, as well as the Ministry of Trade, Industry and Energy, is effectively not being operated jointly. Instead of holding integrated meetings of the three companies, the ministry leading the discussions is said to be meeting separately with the Korea Shipbuilding & Offshore Plant Association and each company to exchange views.
An industry official said, "After the first meeting in the second half, executives and working-level staff met privately several times, but there was nothing we could discuss together with competitors, so we no longer meet together," adding, "Even on the same day, Company A meets at 2 p.m., and Companies B and C meet the association and the government separately at 3 p.m. and 4 p.m., respectively."
The nature of the shipbuilding industry, with many secrets that require strong security, also makes joint business discussions difficult. Beyond technology leaks, the question of liability can also become an issue. In fact, there have been such cases in the past.
In 2004, HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean jointly developed the KC-1 liquefied natural gas (LNG) cargo containment system technology with the Korea Gas Corporation (KOGAS), but when a technical defect (icing) later emerged, a chain of lawsuits broke out among shipbuilders and shipping companies. More recently, Hanwha and HD Hyundai engaged in criminal complaints and lawsuits over the leak of confidential materials, including conceptual designs, during the selection process for the Korea Destroyer Next Generation (KDDX) program.
Lee Sin-hyeong, a professor in the Department of Naval Architecture and Ocean Engineering at Seoul National University, said, "Fierce competition among shipbuilders is the secret to the development of Korea's shipbuilding industry," while noting, "From how materials are procured and stockpiled to which tools are used and how much work is done in each process, every company is different. Because everything is confidential, from warships to merchant ships, the very idea of discussing a project together is difficult."
Each company's investment strategy for the United States also differs. Hanwha Ocean is moving to invest directly by acquiring the Philly Shipyard, while HD Hyundai Heavy Industries and Samsung Heavy Industries are pursuing entry through agreements with local corporations. Unlike Hanwha and HD Hyundai, Samsung Heavy Industries builds only merchant ships. A person who attended a consultative body meeting said, "Because the three competing shipbuilders have different strategic positioning toward the United States, rather than having substantive discussions in meetings where everyone gathers, they tend to formulate response strategies through individual contacts."
However, given that the project totals $150 billion (about 220.62 trillion won), some say a joint response is necessary. Kim Tae-hwang, a professor in the Department of International Trade at Myongji University, said, "Given the project's scale and the uncertainty over how the competitive landscape in shipbuilding will change after U.S. President Donald Trump's term, there are clearly parts where each company should respond jointly under the leadership of the Ministry of Trade, Industry and Energy to maximize the interests of Korea's shipbuilding industry."