Lee Yong-chul, commissioner of the Defense Acquisition Program Administration, said on the 13th that under the Korea-U.S. shipbuilding cooperation project known as MASGA, or Make American Shipbuilding Great Again, "the lead ship and the second ship will be built in Korea, and construction will shift to the United States from the third ship onward."
Lee made the remarks at a parliamentary National Defense Committee audit held at the Government Complex Daejeon, responding to a question from Rep. Min Hong-chul of the Democratic Party of Korea about the prospects for domestic construction under the MASGA project. The approach mirrors the so-called "Finland model" that the United States adopted in October last year for the Coast Guard's Arctic Security Cutter program.
The United States restricts construction of its naval vessels and ships to domestic shipyards under the Jones Act and the Buy American Act. It has, however, conditionally allowed overseas construction, citing aging fleets and labor shortages. Under the ASC program, the first four icebreakers were built at a Finnish shipyard, with subsequent orders going to U.S. shipyards.
Asked about concerns that local construction could limit the participation of Korean materials and parts suppliers, Lee said: "There is no problem with the first two ships since they will be built in Korea, but from the third ship onward, construction will take place locally, so that concern exists." He added, "We will actively seek local entry at the level of parts, components and modules, and work to minimize the exclusion of our partner companies."