Korea and the United States have entered the final stage of talks on investment in the U.S., but some sticking points remain. The government plans to seek a final deal after additional consultations this week.
Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources, after returning to Korea through Incheon International Airport on the 13th from a visit to the United States, told reporters, "A few issues still remain," and noted, "After internal procedures, we plan to hold another round of talks via video conference early this week."
The Minister said, "It is true we are close to agreement on many issues," but added, "Until the final sign-off, there are still points of contention."
The government had initially pushed to brief the National Assembly around the 17th on the first project and details of investment in the U.S., and to sign a memorandum of understanding (MOU) as early as the 18th.
Regarding the negotiation schedule, the Minister explained, "We are thinking of making an attempt within this week," adding, "If we reach a final deal, we are considering announcing it as well."
He drew a line at the possibility that the size of strategic investment in the U.S. would exceed the level already agreed upon.
The Minister emphasized, "The $200 billion cap for strategic investment and the $20 billion annual cap will be kept as originally set when we reached agreement with the United States," adding, "I do not think there will be any exceeding of those limits."
Last year, the Korean government pledged a total of $350 billion in investment in the U.S.—including $150 billion in shipbuilding and $200 billion in strategic investment—on the condition that the U.S. lowers its tariff from 25% to 15%. An annual execution ceiling of $20 billion was also set for the strategic investment.
The specific first investment project has not yet been finalized. The Minister said, "It is difficult to say because no final decision has been made."
Leading candidates currently mentioned include construction of the Encinal combined-cycle gas power plant in Texas and a large nuclear power plant project.
The Minister visited the United States for three days starting on the 10th to coordinate investment projects with U.S. Commerce Secretary Howard Lutnick and others.