Seoul: The government is set to brief the National Assembly next week regarding the inaugural investment project linked to South Korea's significant US$350 billion investment pledge to the United States, officials announced on Sunday.
According to Yonhap News Agency, the industry ministry is preparing to conduct a closed-door briefing at 9:30 a.m. on Tuesday for the National Assembly's trade, industry, energy, SMEs, and startups committee. This briefing will cover the planned U.S.-bound investment, as confirmed by committee officials. This development follows the joint fact sheet (JFS) resulting from last year's summit between South Korean President Lee Jae Myung and U.S. President Donald Trump. Under this agreement, South Korea committed to a massive $350 billion investment in the U.S., including $150 billion specifically for shipbuilding cooperation, in exchange for reduced U.S. tariff rates.
Initially, the two nations were anticipated to unveil the first project last Friday, following a government briefing to the National Assembly on Thursday. However, the announcement was deferred as both parties continued to address unresolved issues. "If the negotiations have been concluded by then, the briefing will cover the final outcome. If negotiations are still under way, it will be provided as an interim report," a committee official stated.
The briefing may also delve into potential changes in investment amounts or terms that might unfavorably impact South Korea. Lawmakers are prepared to scrutinize such details and consider whether parliamentary approval is necessary.
Additionally, the National Assembly's finance committee is deliberating on the timing of its own briefing, which may occur either before or after the industry committee's meeting on Tuesday, according to another official. The government plans to offer relatively detailed outlines regarding the scale and distribution of funds for prospective energy projects, including a substantial gas-fired power plant in Texas and nuclear power projects.
Sources have indicated ongoing disagreements between the two countries over ensuring "commercial viability," a key concern for South Korea as it seeks to fulfill its investment commitments. The Seoul government is advocating for safeguards that would allow adjustments or cessation of investments if projects prove economically unsound or if unexpected risks arise. They are also proposing an annual cap on investment transfers.
Conversely, the U.S. has reportedly been resistant to Seoul's proposed safeguards and is urging for swifter advancement of some projects. "Our key negotiating principle is that investments can only be made when commercial viability is guaranteed," a government official noted. "The two sides remain divided over the issue, which has made the negotiations difficult. If no agreement is reached, the talks could ultimately fall apart."
In related discussions, Foreign Minister Cho Hyun informed reporters on Friday (U.S. time) after talks with U.S. Secretary of State Marco Rubio in Washington that both parties agreed to maintain close communication to execute key agreements between the two leaders. The U.S. State Department relayed that Rubio emphasized the importance of promptly fulfilling the investment commitments.
The joint fact sheet also encompasses other security-related measures, such as South Korea's initiative to develop nuclear-powered submarines and secure rights to enrich uranium and reprocess spent nuclear fuel.