A $150 billion investment agreement has been reached between the two Koreas, reducing the burden on companies and giving them greater control over investment decisions.

Trump emphasized US-ROK cooperation on North Korea immediately after his visit to South Korea, saying,"We will reach a settlement that is favorable to South Korea."

(Seoul = Yonhap News) Reporter Kim Bo-kyung = In the detailed agreement on tariff negotiations between Korea and the United States reached on the 29th, the Korea-U.S. shipbuilding cooperation project 'MASGA' (Make American Shipbuilding Great Again) once again played a leading role.

The two countries have decided to adopt a method of combining cash investment and government guarantees led by Korean companies in relation to the $150 billion MASS investment.

In relation to this, there is an interpretation that the details were agreed upon under conditions more favorable to Korea in terms of investment decision-making authority and investment methods.

At a briefing on the Korea-U.S. summit held at the APEC Media Center on the same day, Kim Yong-beom, the policy director, stated regarding the $350 billion investment in the U.S., which was the biggest point of contention in tariff negotiations, that"it consists of $200 billion in cash investment and $150 billion in shipbuilding cooperation."

In particular, regarding the $150 billion shipbuilding cooperation investment named 'MASGA', he explained,"We agreed that it would be promoted by our companies and would include not only our companies' investments but also guarantees," and "It would reduce the burden on our foreign exchange market by including ship financing, which secures funds through long-term financing when building new ships, while also increasing the possibility of our companies receiving orders for ships."

The shipbuilding industry has taken note of the fact that the $150 billion in shipbuilding cooperation is being invested in a combination of cash and government guarantees led by "our companies."

Meanwhile, the United States has claimed that all of its $350 billion investment funds, including this $150 billion, are cash investments.

However, it is assessed that the burden on our companies has been significantly reduced as the government guarantee is recognized only for cooperative investments in the shipbuilding industry in this detailed agreement.

The shipbuilding cooperation fund, which was broadly agreed upon on July 31, was heavily US-led, with Korean companies investing in areas desired by the US. However, this detailed agreement is interpreted as meaning that Korea has taken the lead in investment destinations and methods.

A shipbuilding industry insider said,"The Mars fund agreement reached on July 31 was burdensome because our companies had to invest in places the U.S. wanted," adding,"However, I understand that the detailed agreement has changed the method so that if our companies decide on a project and express their intention to invest, the U.S. will decide whether to accept it or not."

There is analysis that these detailed agreements were influenced by the so-called "Japanese Masuga," a memorandum of understanding on shipbuilding cooperation signed between the U.S. and Japan in conjunction with the previous summit.

The U.S. and Japan have agreed to establish a"shipbuilding working group" to pursue concrete cooperation, and it has been reported that an agreement has been reached regarding investment, with the U.S. accepting any project proposed by Japan and jointly investing in it.

The fact that US-ROK cooperation will play a leading role in the detailed agreement on US-ROK tariff negotiations was already foreshadowed several times in remarks made by President Trump during his visit to South Korea that day.

In a special address at the Asia-Pacific Economic Cooperation (APEC) CEO Summit held in Gyeongju, President Trump emphasized the shipbuilding industry as a cooperative project with South Korea, saying,"We (South Korea and the United States) have a very special relationship and bond. In fact, we are collaborating with South Korea in shipbuilding."

He added,"We were number one in the world during World War II. We were building one ship a day. But today we're not building ships properly, but we're starting to get there and we're going to have a very thriving shipbuilding industry, and we're working very closely with Korea."

President Trump also mentioned the Hanwha Philly Shipyard in the U.S., in which Hanwha Ocean invested, and predicted,"I think it will become the most successful shipyard in the world."

He also emphasized the cooperative relationship between the two countries, centered on the shipbuilding industry, in his opening remarks at the summit held at the National Gyeongju Museum on the same day.

President Trump said,"(South Korea) has become a master of shipbuilding," adding,"Shipbuilding is essential work, and we are working together at the Philadelphia Shipyard and many other places." He added,"You (Korean companies) are coming in and building ships together in the United States. We will be the best in a short period of time."

A shipbuilding industry insider said,"The negotiations showed that Korea has the initiative in many ways regarding Masugawa," and "It can be seen that the agreement was made in a way that is favorable to Korea, including in terms of the investment method."