Kim Jung-kwan in U.S. to “wrap up remaining issues” in investment talks... $100 billion energy investment nears

【Financial News New York = Correspondent Lee Byung-chul】Kim Jung-kwan, South Korea’s Minister of Trade and Industry, traveled to the United States to conclude bilateral investment talks. As a $22 billion gas-fired combined-cycle power plant in Texas is being widely discussed as the leading candidate for the first U.S. investment project, negotiations between Seoul and Washington appear to be nearing completion on an energy investment package worth more than $100 billion, including nuclear power plants and natural gas projects.
Kim Jung-kwan arrived at Newark Liberty International Airport in New Jersey at around 1:40 p.m. local time on the 10th, after departing Brussels, and met with New York-based correspondents. He said, "What is currently underway concerns investment in the United States," adding, "I came because there are still matters to finalize in the course of the negotiations."
Kim Jung-kwan accompanied President Lee Jae Myung on his state visit to France before traveling directly to the United States after completing his European schedule. He will remain in the country through the 12th and continue investment negotiations with U.S. government officials, including U.S. Commerce Secretary Howard Lutnick.
Kim Jung-kwan was cautious when discussing the atmosphere surrounding the negotiations. Asked whether the talks were proceeding smoothly, he said, "We are doing our best," adding, "Negotiations are never simply easy or difficult, are they?"
Regarding key issues such as the investment amount and the possibility of recovering the principal, he said, "Since negotiations are still underway, I would appreciate it if you could watch how the situation develops." Asked whether the talks had entered their final stage, he replied, "Please consider the negotiations ongoing until the final signature is made."
The leading candidate for the first investment project in the United States is currently the construction of the Encinal gas-fired combined-cycle power plant in Texas, with a total project cost estimated at around $22 billion.
Asked whether the Encinal project had been finalized, Kim Jung-kwan declined to confirm it, saying, "It is difficult to discuss the specific details."
The scope of the investment under discussion between South Korea and the United States could expand beyond a single power plant into a large-scale energy package.
The Wall Street Journal (WSJ), citing multiple sources, reported that the South Korean government had prepared a plan to invest more than $100 billion, or approximately 134 trillion won, in energy projects including eight nuclear power plants and natural gas projects as its first investment initiative in the United States. It added that an agreement between Seoul and Washington was imminent.
The WSJ reported that the two sides had entered the final stage of reaching an agreement on the plan and that it could be announced as early as next week.
Regarding the WSJ report, Kim Jung-kwan also drew a line, saying, "I cannot yet confirm the specific details," and adding, "I will discuss it when the final result is available."


[email protected] Correspondent Lee Byung-chul Reporter