1 00:00:02,720 --> 00:00:07,200 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,160 --> 00:00:13,600 Speaker 2: Earlier this year, Bloomberg reporter way Loon soon visited Hanwa Ocean, 3 00:00:13,840 --> 00:00:17,280 Speaker 2: one of the biggest shipyards in South Korea. They build 4 00:00:17,320 --> 00:00:20,520 Speaker 2: everything from oil tankers to container ships that carry goods 5 00:00:20,680 --> 00:00:25,080 Speaker 2: all around the world. Waylon for people like me who've 6 00:00:25,079 --> 00:00:27,319 Speaker 2: never been to a shipyard, and what does it look like. 7 00:00:27,840 --> 00:00:30,720 Speaker 1: So it's really actually a factory town. You arrive at 8 00:00:30,760 --> 00:00:33,440 Speaker 1: the top of the hill and then you slowly drive 9 00:00:33,560 --> 00:00:37,640 Speaker 1: down and from there you can really see this huge 10 00:00:37,920 --> 00:00:42,240 Speaker 1: crans called goliath queens. They're really tall, almost like a building. 11 00:00:42,520 --> 00:00:44,680 Speaker 1: You see them rising up in front of your eyes. 12 00:00:45,360 --> 00:00:48,320 Speaker 1: And then beyond that you see a lot of workers 13 00:00:48,360 --> 00:00:51,639 Speaker 1: on bicycles and their coveralls and their goggles and their 14 00:00:51,680 --> 00:00:55,320 Speaker 1: helmets going around doing their daily work. And then when 15 00:00:55,320 --> 00:00:58,280 Speaker 1: you cast your eyes across a shipyard, you see huge 16 00:00:58,320 --> 00:01:02,080 Speaker 1: blocks of metal sitting around on the ground. They look 17 00:01:02,160 --> 00:01:04,000 Speaker 1: like huge lego pieces. 18 00:01:04,760 --> 00:01:08,080 Speaker 2: These lego pieces will be assembled together over the next 19 00:01:08,160 --> 00:01:11,920 Speaker 2: few weeks, months, or even years to become gigantic ships. 20 00:01:12,360 --> 00:01:15,520 Speaker 1: The largest ones can be as tall as the Empire 21 00:01:15,560 --> 00:01:20,320 Speaker 1: State Building. Just imagine the entire building tilted sideways horizontally. 22 00:01:20,640 --> 00:01:22,680 Speaker 1: You put them on the water, and then off they go. 23 00:01:23,520 --> 00:01:27,400 Speaker 2: This shipyard, Hanwa Ocean and others like it across Korea 24 00:01:27,520 --> 00:01:29,600 Speaker 2: are busier than they've been in years. 25 00:01:30,280 --> 00:01:34,360 Speaker 1: Korean shipyards are fully booked till twenty twenty eight. Workers 26 00:01:34,400 --> 00:01:38,160 Speaker 1: are hiring all around. The place is really buzzing with activity. 27 00:01:38,520 --> 00:01:40,640 Speaker 1: Every single dock space is filled. 28 00:01:41,040 --> 00:01:44,800 Speaker 2: Korean shipyards are busy these days. As Soul and Washington 29 00:01:44,959 --> 00:01:48,160 Speaker 2: land a new trade deal, it includes a huge pledge 30 00:01:48,160 --> 00:01:51,440 Speaker 2: from Korea to invest one hundred and fifty billion dollars 31 00:01:51,480 --> 00:01:56,680 Speaker 2: in America's shipbuilding industry to boost US maritime power. Here's 32 00:01:56,720 --> 00:01:59,120 Speaker 2: Trump talking about the alliance at a meeting with South 33 00:01:59,200 --> 00:02:01,840 Speaker 2: Korean President Lee J Mung earlier this week. 34 00:02:02,680 --> 00:02:06,559 Speaker 3: You know, we really sort of need each other. We 35 00:02:07,000 --> 00:02:09,120 Speaker 3: love what they do, we love their product, we love 36 00:02:09,160 --> 00:02:10,600 Speaker 3: their ships, we love at. 37 00:02:10,680 --> 00:02:14,120 Speaker 2: This newfound love affair between the two countries is driven 38 00:02:14,240 --> 00:02:17,200 Speaker 2: by the US's goal to curb the dominance of the 39 00:02:17,200 --> 00:02:21,760 Speaker 2: world's biggest shipbuilder, China, and boosting the South Korean shipbuilding 40 00:02:21,840 --> 00:02:24,080 Speaker 2: sector is a key part of that plan. 41 00:02:24,400 --> 00:02:26,600 Speaker 3: We're going to be buying ships from South Korea, but 42 00:02:26,639 --> 00:02:29,160 Speaker 3: we're also going to have them make ships here with 43 00:02:29,280 --> 00:02:32,600 Speaker 3: our people. Using our people, and we're going to go 44 00:02:32,720 --> 00:02:34,680 Speaker 3: back into the shipbuilding business again. 45 00:02:35,400 --> 00:02:39,640 Speaker 1: Now you have Donald Trump trying to remake the global 46 00:02:40,040 --> 00:02:43,920 Speaker 1: trade order through the use of tariffs. And for Korea, 47 00:02:43,960 --> 00:02:46,440 Speaker 1: you also have this country that used to be a 48 00:02:46,560 --> 00:02:52,200 Speaker 1: huge shipbuilding power but lost its crown to China. Having 49 00:02:52,600 --> 00:02:56,040 Speaker 1: American interests in their shipbuilders. It's also a good way 50 00:02:56,120 --> 00:02:59,640 Speaker 1: for them to find new growth engines for them to 51 00:02:59,680 --> 00:03:03,359 Speaker 1: expect and beyond Korea, to have that transfer of knowledge 52 00:03:03,639 --> 00:03:06,560 Speaker 1: and then maybe to even start building ships in the US. 53 00:03:12,919 --> 00:03:16,320 Speaker 2: This is the Big Take Asia from Bloomberg News. I'm Wanha. 54 00:03:16,800 --> 00:03:19,200 Speaker 2: Every week we take you inside some of the world's 55 00:03:19,200 --> 00:03:23,400 Speaker 2: biggest and most powerful economies and the markets, tycoons and 56 00:03:23,560 --> 00:03:27,880 Speaker 2: businesses that drive this ever shifting region. Today in the show, 57 00:03:28,320 --> 00:03:32,480 Speaker 2: Trump has a shipbuilding dream in Korea. Make it come true. 58 00:03:37,960 --> 00:03:41,040 Speaker 1: MASCA project, Pasca, Masca project. 59 00:03:45,560 --> 00:03:46,360 Speaker 2: We're going to do that. 60 00:03:46,680 --> 00:03:49,240 Speaker 3: I think we're going to do that very very strongly. 61 00:03:50,680 --> 00:03:53,680 Speaker 2: This week's meeting between Trump and South Korean President Lee 62 00:03:53,760 --> 00:03:56,120 Speaker 2: J Mung at the White House was the first time 63 00:03:56,200 --> 00:03:59,240 Speaker 2: the two met since Lee took office in June, and 64 00:03:59,280 --> 00:04:02,400 Speaker 2: they discussed the details of a trade agreement reached last month. 65 00:04:02,920 --> 00:04:05,840 Speaker 2: The deal set of fifteen percent teriff freight on Korean 66 00:04:05,880 --> 00:04:10,080 Speaker 2: goods imported to the US. It also included a pledge 67 00:04:10,120 --> 00:04:13,160 Speaker 2: by Korea to invest three hundred and fifty billion dollars 68 00:04:13,200 --> 00:04:17,080 Speaker 2: in the US, nearly half of that dedicated to shipbuilding. 69 00:04:17,600 --> 00:04:20,640 Speaker 2: Bloomberg's Way. Looon Soon says the initiative even has a 70 00:04:20,720 --> 00:04:23,440 Speaker 2: name that's likely to get the thumbs up from Trump 71 00:04:24,120 --> 00:04:28,800 Speaker 2: Masco make American Shipbuilding great Again for. 72 00:04:28,960 --> 00:04:33,720 Speaker 1: Soul in Washington. Both do realize that shipbuilding is a 73 00:04:33,760 --> 00:04:37,760 Speaker 1: big overlapping theme that they can at least see ito 74 00:04:37,800 --> 00:04:42,080 Speaker 1: ion way. Before Trump came into office, the Biden administration 75 00:04:42,279 --> 00:04:46,760 Speaker 1: was already looking at concerns over shipbuilding and having seen 76 00:04:46,839 --> 00:04:49,040 Speaker 1: ships as a strategic national asset. 77 00:04:50,040 --> 00:04:53,760 Speaker 2: Korea builds hundreds of ships every year. When completed, they 78 00:04:53,839 --> 00:04:56,560 Speaker 2: join a global fleet that carries eighty percent of the 79 00:04:56,560 --> 00:04:59,880 Speaker 2: world's trade. And building these massive ships is a li 80 00:05:00,080 --> 00:05:04,760 Speaker 2: labor intensive process. Hundreds of workers assemble the metal blocks together, 81 00:05:05,440 --> 00:05:08,560 Speaker 2: then there's all the electronic and mechanical equipment that has 82 00:05:08,600 --> 00:05:12,279 Speaker 2: to be installed before the ships are finally painted. The 83 00:05:12,320 --> 00:05:15,240 Speaker 2: whole process can take up to two years from start 84 00:05:15,320 --> 00:05:15,880 Speaker 2: to launch. 85 00:05:16,360 --> 00:05:18,640 Speaker 1: They have a little ceremony to see off the ship, 86 00:05:18,839 --> 00:05:21,680 Speaker 1: and I remember distinctly one of the people that we 87 00:05:21,960 --> 00:05:24,320 Speaker 1: and a few he did say that each time he 88 00:05:24,640 --> 00:05:27,520 Speaker 1: sends off a ship, it's like seeing off your son 89 00:05:27,600 --> 00:05:30,440 Speaker 1: or your daughter off at a wedding, because it took 90 00:05:30,480 --> 00:05:32,560 Speaker 1: so long to put them together, and it's a proper 91 00:05:32,600 --> 00:05:33,320 Speaker 1: moment for them. 92 00:05:34,160 --> 00:05:38,279 Speaker 2: Korea's modern shipbuilding industry really took off in the nineteen seventies. 93 00:05:38,600 --> 00:05:41,640 Speaker 2: The government developed the sector by pouring subsidies into it 94 00:05:41,839 --> 00:05:45,400 Speaker 2: and importing foreign tech. The sector got a boost from 95 00:05:45,440 --> 00:05:48,599 Speaker 2: a surge in global trade and demand for affordable ships. 96 00:05:49,120 --> 00:05:52,680 Speaker 2: By two thousand, Korea had become the world's biggest shipbuilder. 97 00:05:53,520 --> 00:05:59,640 Speaker 1: They had the workforce, and crucially, they were economies that 98 00:05:59,680 --> 00:06:04,080 Speaker 1: would turning outwards. They were looking to export a lot 99 00:06:04,120 --> 00:06:06,839 Speaker 1: of their manufactured goods to the rest of the world 100 00:06:07,480 --> 00:06:11,800 Speaker 1: as the economies of scale war of as labor costs 101 00:06:11,800 --> 00:06:14,960 Speaker 1: went up, Korea stepped up to become the world's top 102 00:06:15,000 --> 00:06:19,240 Speaker 1: shipbuilder in the late nineties. It's also partly driven by 103 00:06:19,279 --> 00:06:22,080 Speaker 1: its own need for national security, because you have this 104 00:06:22,160 --> 00:06:25,960 Speaker 1: persistent threat from the North itself, so both military and 105 00:06:26,040 --> 00:06:29,479 Speaker 1: commercial shipping. The needs in those two aspectually drove career 106 00:06:29,520 --> 00:06:31,360 Speaker 1: to become a bigger shipbuilder. 107 00:06:31,880 --> 00:06:35,080 Speaker 2: But the tide started to turn after China joined the 108 00:06:35,080 --> 00:06:37,400 Speaker 2: World Trade Organization in two thousand and one. 109 00:06:38,240 --> 00:06:40,720 Speaker 1: If we were to take the year two thousand as 110 00:06:40,760 --> 00:06:45,400 Speaker 1: a baseline, during that year, Korea commanded a twenty nine 111 00:06:45,400 --> 00:06:49,760 Speaker 1: percent share of the global order book for ships. Japan 112 00:06:49,880 --> 00:06:51,840 Speaker 1: was not far off. It was around twenty eight point 113 00:06:51,880 --> 00:06:56,599 Speaker 1: five and China was under nine percent. And if we 114 00:06:56,680 --> 00:06:59,880 Speaker 1: fast forward by just a few years, you can tell 115 00:07:00,080 --> 00:07:03,440 Speaker 1: that in the year two thousand and eight on nine 116 00:07:03,880 --> 00:07:07,839 Speaker 1: China overtook Korea and Japan in just a short span 117 00:07:07,920 --> 00:07:09,480 Speaker 1: of eight on nine years. 118 00:07:10,320 --> 00:07:13,160 Speaker 2: Then in two thousand and eight, the financial crisis brought 119 00:07:13,240 --> 00:07:17,480 Speaker 2: global trade to a halt. New ship orders collapsed. Korean 120 00:07:17,560 --> 00:07:21,240 Speaker 2: shipbuilders were now struggling to compete with Chinese rivals who 121 00:07:21,280 --> 00:07:25,160 Speaker 2: began flooding the market with cheap vessels. One by one, 122 00:07:25,360 --> 00:07:29,200 Speaker 2: they were forced to close, workers lost their jobs, and 123 00:07:29,280 --> 00:07:33,960 Speaker 2: some of the biggest shipbuilding companies reported record losses. Today, 124 00:07:34,200 --> 00:07:37,120 Speaker 2: China is by far the biggest shipbuilding country in the world. 125 00:07:37,280 --> 00:07:40,600 Speaker 2: They're building sixty percent of all the ships under construction. 126 00:07:40,720 --> 00:07:45,000 Speaker 1: Now, that's why you see the US being concerned about 127 00:07:45,080 --> 00:07:48,680 Speaker 1: China's dominance because let's say in a time of crisis, 128 00:07:49,080 --> 00:07:52,880 Speaker 1: what would happen to all these strategic resources that they 129 00:07:53,120 --> 00:07:55,600 Speaker 1: might need to rely on to get goods and commodities 130 00:07:55,960 --> 00:07:58,640 Speaker 1: flowing to US shaws And that's where a lot of 131 00:07:58,640 --> 00:08:01,440 Speaker 1: the content comes from. 132 00:08:01,640 --> 00:08:05,080 Speaker 2: After the break, as Korea and US joined forces to 133 00:08:05,160 --> 00:08:21,560 Speaker 2: revive American shipbuilding, could that topple China's maritime dominance. After 134 00:08:21,600 --> 00:08:25,080 Speaker 2: Trump took office earlier this year, the US took aim 135 00:08:25,280 --> 00:08:28,960 Speaker 2: at China's grip on the shipbuilding industry. It announced that 136 00:08:29,000 --> 00:08:32,640 Speaker 2: ships owned, operated, or built by Chinese companies would have 137 00:08:32,720 --> 00:08:36,439 Speaker 2: to pay additional fees to the US government to dock 138 00:08:36,640 --> 00:08:40,559 Speaker 2: at American ports. Ship owners were looking at paying millions 139 00:08:40,600 --> 00:08:42,920 Speaker 2: of dollars more for each port visit. 140 00:08:43,440 --> 00:08:46,600 Speaker 1: When it first came out Alio this year, it cost 141 00:08:46,679 --> 00:08:50,320 Speaker 1: a lot of confusion and chaos in the global shipbank 142 00:08:50,360 --> 00:08:55,040 Speaker 1: industry because so many shipowners have bought Chinese ships. 143 00:08:56,679 --> 00:09:01,120 Speaker 2: Korean shipbuilders, including Hanua Ocean, were suddenly they back in demand. 144 00:09:01,640 --> 00:09:04,560 Speaker 1: They got phone calls from some of the larger container 145 00:09:04,600 --> 00:09:07,320 Speaker 1: liners saying that they are willing to pay upwards off 146 00:09:07,360 --> 00:09:11,360 Speaker 1: ten percent or more and premiums just to secure an 147 00:09:11,400 --> 00:09:14,360 Speaker 1: earlier slot at their shipyards which are already booked to 148 00:09:14,679 --> 00:09:15,560 Speaker 1: twenty twenty eight. 149 00:09:15,760 --> 00:09:18,160 Speaker 2: If I may add, no, imagine that's probably millions of dollars. 150 00:09:18,200 --> 00:09:22,080 Speaker 1: No, exactly, a container ship can cost up to tens 151 00:09:22,120 --> 00:09:25,200 Speaker 1: of even hundreds of millions and a ten percent premium. 152 00:09:25,200 --> 00:09:27,760 Speaker 1: It's a really staggering amount for just one ship. 153 00:09:28,240 --> 00:09:31,240 Speaker 2: In the first half of this year, twenty five percent 154 00:09:31,320 --> 00:09:34,760 Speaker 2: of the world's global ship orders went to Korea. That's 155 00:09:34,800 --> 00:09:38,280 Speaker 2: up from seventeen percent last year, and the US did 156 00:09:38,320 --> 00:09:42,000 Speaker 2: eventually lower the levees on Chinese ships. The short term 157 00:09:42,080 --> 00:09:46,760 Speaker 2: chaos faded and Korean shipbuilders got fewer calls, but Waylon 158 00:09:46,880 --> 00:09:49,960 Speaker 2: says the US's message to the global ship and community 159 00:09:50,240 --> 00:09:52,079 Speaker 2: was received loud and clear. 160 00:09:52,960 --> 00:09:56,360 Speaker 1: It's using that leverage that it has an economic power 161 00:09:56,679 --> 00:09:59,280 Speaker 1: to tell the rest of the world that wants a 162 00:09:59,360 --> 00:10:03,559 Speaker 1: treyer with the that hey, you shouldn't really too much 163 00:10:03,600 --> 00:10:08,520 Speaker 1: on Chinese ships because we are concerned that China could 164 00:10:08,600 --> 00:10:12,040 Speaker 1: be a competitor to us. We are also concerned that 165 00:10:12,160 --> 00:10:16,160 Speaker 1: China is subsidizing a lot of these excess capacity in 166 00:10:16,200 --> 00:10:19,160 Speaker 1: building ships that is at the detriment of not only 167 00:10:19,800 --> 00:10:23,120 Speaker 1: your own economies, but also the US economy. So what 168 00:10:23,320 --> 00:10:26,080 Speaker 1: is forcing the rest of the shipping wall is to 169 00:10:26,120 --> 00:10:29,320 Speaker 1: make a choice that either you're traded with US without 170 00:10:29,400 --> 00:10:33,120 Speaker 1: Chinese ships, or you can continue buying cheaper Chinese ships 171 00:10:33,320 --> 00:10:35,560 Speaker 1: but just don't trade with US. And that's a message 172 00:10:35,559 --> 00:10:37,400 Speaker 1: that're trying to put across to the rest of the world. 173 00:10:38,200 --> 00:10:42,080 Speaker 2: By targeting China's shipbuilding dominance, the US is making it 174 00:10:42,160 --> 00:10:47,360 Speaker 2: clear that reliable maritime supply chains are critical to national security. 175 00:10:48,000 --> 00:10:51,360 Speaker 2: And here's an important stat Right now, the US builds 176 00:10:51,600 --> 00:10:55,559 Speaker 2: less than one percent of the commercial shipping fleet. Korea's 177 00:10:55,600 --> 00:10:59,040 Speaker 2: one hundred and fifty billion dollar investment is aimed at 178 00:10:59,080 --> 00:11:02,920 Speaker 2: helping the US increase that market share, and Wayland says 179 00:11:03,080 --> 00:11:04,720 Speaker 2: it could help Korea too. 180 00:11:05,520 --> 00:11:09,360 Speaker 1: For these Korean shipbuilders, it actually gives them a way 181 00:11:09,440 --> 00:11:14,040 Speaker 1: to secure more contracts and deals for the services that 182 00:11:14,040 --> 00:11:17,720 Speaker 1: they can potentially provide for the US. And already we 183 00:11:17,760 --> 00:11:22,480 Speaker 1: see that happening, like some of them are inking contract 184 00:11:22,559 --> 00:11:26,160 Speaker 1: deals with the US Navy for maintenance and repair and overhaul. 185 00:11:26,640 --> 00:11:29,120 Speaker 1: Some of them have even bought over shipyards in the 186 00:11:29,240 --> 00:11:32,920 Speaker 1: US to establish a base for shipbuilding in the US. 187 00:11:32,960 --> 00:11:35,400 Speaker 1: And further down the line, we can actually think of 188 00:11:35,920 --> 00:11:40,400 Speaker 1: ways that the Koreans can forge more ways of collaboration 189 00:11:40,640 --> 00:11:45,200 Speaker 1: with the shipbuilders in America, and I think ultimately when 190 00:11:45,200 --> 00:11:50,360 Speaker 1: you see the US shipbuilding sector growing, the Korean yards 191 00:11:50,400 --> 00:11:53,400 Speaker 1: will be very good partners for them. 192 00:11:53,720 --> 00:11:57,040 Speaker 2: But for the moment, the make American Shipbuilding Great Again 193 00:11:57,160 --> 00:11:59,400 Speaker 2: plan is just a handshake agreement. 194 00:12:00,280 --> 00:12:03,840 Speaker 1: Details are still scanned at this moment, but we do 195 00:12:04,000 --> 00:12:06,480 Speaker 1: know that these will go into various segments of the 196 00:12:06,520 --> 00:12:10,120 Speaker 1: shipbuilding sector. It's not just about building dogs or like 197 00:12:10,280 --> 00:12:15,199 Speaker 1: parts in the US, but it's also involved doing maintenance projects, 198 00:12:15,320 --> 00:12:19,880 Speaker 1: building ships and also training some of the workers in 199 00:12:19,960 --> 00:12:22,960 Speaker 1: the US so that overall, not only do you see 200 00:12:23,160 --> 00:12:26,199 Speaker 1: ships being built in the US, you also have the 201 00:12:26,240 --> 00:12:30,440 Speaker 1: technical know how an expertise being transferred from Korea to 202 00:12:30,520 --> 00:12:33,800 Speaker 1: the US so that the US can start really think 203 00:12:33,800 --> 00:12:36,359 Speaker 1: about having domestic ships being built. 204 00:12:36,640 --> 00:12:39,760 Speaker 2: So best case, this deal is a rising tide that 205 00:12:39,840 --> 00:12:43,320 Speaker 2: lives shipbuilding in both countries. And even if it does 206 00:12:43,400 --> 00:12:48,360 Speaker 2: pay off, Korean shipbuilders will still face serious headwinds. Wages 207 00:12:48,400 --> 00:12:51,080 Speaker 2: are rising in Korea and the country is dealing with 208 00:12:51,120 --> 00:12:54,240 Speaker 2: the labor shortage, one that's made worse by the lowest 209 00:12:54,240 --> 00:12:55,400 Speaker 2: birth rate in the world. 210 00:12:56,120 --> 00:12:59,160 Speaker 1: If you think about shipbuilding, not only it requires a 211 00:12:59,240 --> 00:13:03,360 Speaker 1: large pull of labor of workers upstream, you also need 212 00:13:03,440 --> 00:13:06,760 Speaker 1: a strong supply of steel. At the same time, they're 213 00:13:07,160 --> 00:13:10,480 Speaker 1: stuck in a country that's quite small. 214 00:13:10,679 --> 00:13:13,840 Speaker 2: And China has the edge in almost all those areas. 215 00:13:14,480 --> 00:13:18,960 Speaker 1: China had a good pool of labor, they had cheap steel, 216 00:13:19,280 --> 00:13:22,040 Speaker 1: and of course you have the really strong Beijing government 217 00:13:22,120 --> 00:13:24,240 Speaker 1: and I think in one of the five year plans 218 00:13:24,360 --> 00:13:27,600 Speaker 1: they did say explicitly during this period of time that 219 00:13:27,920 --> 00:13:31,040 Speaker 1: they want to build up shipbuilding and parts are important 220 00:13:31,080 --> 00:13:33,360 Speaker 1: into China's vision of a global economy. 221 00:13:34,200 --> 00:13:38,840 Speaker 2: So Wayluan China is at the moment dominating the shipbuilding market. 222 00:13:39,240 --> 00:13:42,400 Speaker 2: What edge then does Korea have to compete with China. 223 00:13:43,000 --> 00:13:46,240 Speaker 1: From our conversations with the shipbuilders in Korea, it came 224 00:13:46,280 --> 00:13:49,200 Speaker 1: to realize that they're way past the stage of competing 225 00:13:49,200 --> 00:13:53,160 Speaker 1: the China on the cost of building ships. In today's shipbuilding, 226 00:13:53,280 --> 00:13:56,080 Speaker 1: it's really the need for more advanced ships and also 227 00:13:56,160 --> 00:13:59,959 Speaker 1: newer forms of energy. If we talk about cleaner fuewel. 228 00:14:00,400 --> 00:14:04,480 Speaker 1: You have at the global level the International Maritime Organization 229 00:14:05,000 --> 00:14:08,800 Speaker 1: trying to push for a vision to decognize the maritime sector, 230 00:14:08,920 --> 00:14:11,640 Speaker 1: and with that you need to burn different kinds of fuel. 231 00:14:11,720 --> 00:14:16,160 Speaker 1: It's not just fossil fuels, but you're talking about methanol ammonia. 232 00:14:16,480 --> 00:14:20,840 Speaker 1: These are fuels that are quite new to the industry 233 00:14:21,160 --> 00:14:23,200 Speaker 1: and you need to find a way to burn them 234 00:14:23,400 --> 00:14:27,000 Speaker 1: efficiently but safely. And so this is where Korea is 235 00:14:27,000 --> 00:14:31,080 Speaker 1: trying to innovate on and designing engines and also the 236 00:14:31,280 --> 00:14:32,480 Speaker 1: entire ship structure. 237 00:14:33,920 --> 00:14:36,520 Speaker 2: Now, way loon, since we're talking about shipbuilding in the sea, 238 00:14:36,520 --> 00:14:38,600 Speaker 2: I'm going to try to use as many sea puns 239 00:14:38,680 --> 00:14:41,600 Speaker 2: as I can think of. Sure, Okay, Now, with this 240 00:14:41,760 --> 00:14:45,040 Speaker 2: new US push this year the shipbuilding industry in a 241 00:14:45,080 --> 00:14:48,240 Speaker 2: new direction. Will this be smooth sailing for South Korea? 242 00:14:48,480 --> 00:14:51,000 Speaker 2: Or could it put shipbuilders in a tricky spot where 243 00:14:51,160 --> 00:14:52,720 Speaker 2: they're having to just tread water. 244 00:14:53,600 --> 00:14:55,720 Speaker 1: I think it's going to be choppy waters for the 245 00:14:55,800 --> 00:14:58,800 Speaker 1: current shipbuilders in the weeks and months to come, because 246 00:14:59,240 --> 00:15:01,960 Speaker 1: we do see that President Donald Trump can be quite 247 00:15:02,040 --> 00:15:07,200 Speaker 1: unpredictable at times in bilateral negotiations. We already see the 248 00:15:07,360 --> 00:15:11,680 Speaker 1: commitment that Korean ship builders have with regard to finding 249 00:15:11,720 --> 00:15:15,240 Speaker 1: ways to collaborate with the Americans. But the question is 250 00:15:15,440 --> 00:15:19,640 Speaker 1: how willing are the Americans and seeing this in the 251 00:15:19,680 --> 00:15:24,000 Speaker 1: long term, because ultimately building a ship, as we've discussed earlier. 252 00:15:24,120 --> 00:15:27,200 Speaker 1: It's beyond just two five years. It takes a long 253 00:15:27,240 --> 00:15:31,520 Speaker 1: time for the entire industry to be built. You are 254 00:15:31,680 --> 00:15:35,360 Speaker 1: taking something that takes decades to build and you're trying 255 00:15:35,360 --> 00:15:39,480 Speaker 1: to crunch it down into a four yer US presidency rate. 256 00:15:40,000 --> 00:15:44,120 Speaker 1: You have the US President trying to push shipbuilding to 257 00:15:44,240 --> 00:15:46,920 Speaker 1: the top of his agenda. But at the same time, 258 00:15:47,000 --> 00:15:50,520 Speaker 1: one are steps needed to turn this vision into a 259 00:15:50,560 --> 00:15:54,560 Speaker 1: sustainable one beyond this term in office, and that's where 260 00:15:54,600 --> 00:15:57,280 Speaker 1: a lot of the details need to be ironed out. 261 00:15:57,720 --> 00:16:00,680 Speaker 1: These are partnerships that can potentially bring a lot of 262 00:16:00,960 --> 00:16:04,160 Speaker 1: benefits to both economies, and it can create a lot 263 00:16:04,200 --> 00:16:06,760 Speaker 1: of jobs and also bring a lot of revenue. But 264 00:16:06,880 --> 00:16:09,200 Speaker 1: the question is how do we get there in ten 265 00:16:09,280 --> 00:16:12,240 Speaker 1: years time? And that's a big question for all the 266 00:16:12,240 --> 00:16:14,480 Speaker 1: shipbuilders and the experts that we've been talking to. 267 00:16:21,520 --> 00:16:24,400 Speaker 2: This is The Big Take Asia from Bloomberg News. I'm 268 00:16:24,400 --> 00:16:27,880 Speaker 2: wanha to get more from The Big Take and unlimited 269 00:16:27,880 --> 00:16:30,960 Speaker 2: access to all of Bloomberg dot Com, subscribe today at 270 00:16:31,000 --> 00:16:34,920 Speaker 2: Bloomberg dot com slash podcast Offer. If you liked the episode, 271 00:16:35,080 --> 00:16:37,680 Speaker 2: make sure to subscribe and review The Big Take Asia 272 00:16:37,760 --> 00:16:41,040 Speaker 2: wherever you listen to podcasts it really helps people find 273 00:16:41,080 --> 00:16:43,960 Speaker 2: the show. Thanks for listening, See you next time.