Industry Minister Kim Jung-kwan Says U.S. Investment Talks in Final Stages, Hints at Late-August Announcement

[Financial News] Minister of Trade, Industry and Energy Kim Jung-kwan, who is visiting the United States, said the first U.S. investment target could be announced as early as late August. Under a trade deal reached with Washington in July last year, South Korea pledged to invest $350 billion, or about 517 trillion won, if the United States capped additional tariffs on Korean goods at 15%.
Kim made the remarks on the 22nd local time after arriving in the United States via Washington Dulles International Airport near Washington, D.C., during a meeting with Korean reporters. Asked whether the investment would be in energy-related areas such as liquefied natural gas, he said, "From our perspective as well, projects that can generate stable cash flow are naturally better projects." He added, "We think energy-related projects are more favorable in that regard, so we are discussing such projects with the U.S. side."
Kim said, "We are now in the final stages," adding, "If we wrap up the deal on the key issues, I think it could be announced in late August or sometime in September." Before his remarks, Kim Yong-beom, policy chief at the Blue House, also mentioned August to September as the likely timing for the announcement of the first U.S. investment project in comments to local media.
Kim stressed, "We are in very close discussions with the United States on the current project. I came here to continue those talks," adding, "There are broad principles such as commercial rationality, so it is not something we can simply do unconditionally. But we need to do our best and create a win-win situation for South Korea and the United States."
Kim visited the United States to attend the opening ceremony of the Korea-U.S. Shipbuilding Cooperation Center in Washington, D.C., on the 23rd. Explaining the purpose of his trip, he said, "I came for tomorrow's opening ceremony of the Korea-U.S. Shipbuilding Cooperation Center, and I also want to meet the United States Secretary of Commerce Howard Lutnick and other ministers to discuss pending issues."
Kim said that during his visit he will also discuss U.S. trade measures and tariff issues with Ye Han-koo, the Minister for Trade, who is separately carrying out his own U.S. schedule, and meet with relevant U.S. officials.
Last year, the United States imposed reciprocal tariffs on countries around the world, including South Korea. After the Supreme Court ruled the move illegal in February, Washington turned to Section 122 of the Trade Act of 1974 instead. Under that law, the United States imposed an additional 10% tariff on South Korea and other countries, but the measure is only valid until the 24th. The U.S. is now trying to use Section 301 of the Trade Act of 1974 to secure additional tariffs from major trading partners, including South Korea, on the grounds of unfair trade practices. South Korea has already been placed under investigation for overproduction and forced labor issues, and the Office of the United States Trade Representative (USTR) warned last month of a 12.5% tariff on South Korea.
Asked whether the 15% level set in last year's trade agreement is the upper limit for tariffs under Section 301 of the Trade Act of 1974, Kim replied, "That issue is set to be concluded on the 24th, so we plan to discuss it together."
Meanwhile, on the so-called Coupang incident becoming a diplomatic and trade issue between South Korea and the United States, Kim said, "There seem to be misunderstandings and gaps between the two countries," adding that when he explains the Coupang-related issue, many people respond, "Oh, so that was the issue? I didn't know."
He added, "It is our job to clear up those misunderstandings and narrow those gaps," and said that all relevant ministries are working to bring the issue to a level the U.S. side can understand.
[email protected] Park Jong-won Reporter