South Korean minister: $200 billion U.S. investment, focused on energy, may be announced by August

South Korean Minister of Trade, Industry and Energy, Kim Jeong-sik, revealed that the first major investment project under the bilateral trade agreement with the United States, totaling $200 billion, is likely to focus on the energy sector. He indicated that discussions are progressing smoothly and an announcement could be made as early as late August or September.

“

Currently, we are discussing very closely with the United States. Because we have been continuously consulting via video conference even when I was in Korea, I believe we are in the final stages.

Speaking to reporters at Dulles International Airport near Washington, Kim stated that negotiations are in their final stages. He expressed optimism about finalizing the deal, noting that "if we can wrap up all these aspects well, I think we can announce it around late August or September." This timeline aligns with previous projections from Kim Yong-beom, a senior presidential secretary for policy.

The minister confirmed that energy-related businesses are the primary candidates for this initial investment, citing their potential for stable cash flow. "From our perspective, projects that can generate stable cash flow are better projects," Kim explained, adding that energy projects fit this criterion. However, he remained tight-lipped about specific investment targets, such as liquefied natural gas (LNG).

“

If we can wrap up all these aspects well, I think we can announce it around late August or September.

Kim also addressed concerns about the pace of the investment, explaining that domestic procedures, including the enactment of necessary legislation which took effect in June, have contributed to the timeline. He stressed that investments must meet the standard of "commercial rationality" and aim for a win-win situation for both South Korea and the U.S.

“

From our perspective, projects that can generate stable cash flow are better projects. From that perspective, energy-related projects are advantageous, so we are discussing them with that focus.

During his visit, Kim is also scheduled to discuss trade matters, including the expiration of global tariffs under Section 122 of the U.S. Trade Act and potential follow-up tariffs under Section 301. South Korea advocates for adhering to the 15% tariff cap agreed upon in the bilateral trade deal. Additionally, he plans to engage in discussions regarding the ongoing controversy surrounding Coupang, a South Korean e-commerce giant, aiming to bridge understanding between the two nations on the issue.

“

There are misunderstandings and gaps regarding Coupang. It is the role of people like us to resolve those misunderstandings and narrow the gaps.