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Seoul, July 28 (IANS) South Korea has proposed a multibillion-dollar shipbuilding investment package in the United States as part of ongoing negotiations to avert steep U.S. tariffs as the August 1 deadline for such a deal nears, government sources said on Monday, noting the proposal appears to have been well received.

According to the multiple sources, Industry Minister Kim Jung-kwan held talks with U.S. Commerce Secretary Howard Lutnick on Friday (local time) in New York, during which he presented the proposal, dubbed "Make American Shipbuilding Great Again" (MASGA).

The MASGA project, whose name is inspired by U.S. President Donald Trump's slogan "Make America Great Again" (MAGA), involves large-scale investments by South Korean private shipbuilders in the U.S. The package includes not only capital investment but also financial support, such as loans and guarantees backed by Korean institutions, reports Yonhap news agency.

Public financial institutions, such as the state-run Export-Import Bank of Korea, are being considered as potential participants in providing financial support for the MASGA initiative, the source said.

Lutnick, who is seen as a key decision-maker in the bilateral tariff negotiations, reportedly responded positively to the proposal and expressed satisfaction with Seoul's offer.

As part of the ongoing talks, Finance Minister Koo Yun-cheol is expected to visit the U.S. later this week and is likely to meet with U.S. Treasury Secretary Scott Bessent on Thursday (local time).

Seoul aims to finalize a trade agreement with Washington before the Aug. 1 deadline to reduce the 25 percent reciprocal tariff and sector-specific duties imposed on South Korean goods under the Trump administration.

The reciprocal tariffs were initially implemented April 9 but were immediately suspended by President Trump for 90 days to allow for negotiations. The suspension has since been extended, but Washington indicated plans to resume enforcement starting Aug. 1 unless a deal is reached.

Meanwhile, Finance Minister Koo Yun-cheol is likely to meet with Treasury Secretary Scott Bessent this Thursday to reach a tariff deal just before the hefty reciprocal duties take effect on August 1.

The negotiations, set for Thursday (U.S. time), come as Seoul seeks to reach a trade deal with the United States to lower the 25 percent reciprocal tariff and sectoral duties set by the Donald Trump administration on South Korean goods.

The meeting is likely to take place at the U.S. Department of the Treasury headquarters in Washington, D.C., though the exact time and location of the meeting has yet to be confirmed, the sources said.

—IANS

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