▲ Minister of Trade, Industry and Energy Kim Jeong-gwan poses for a commemorative photo with the U.S. Secretary of Commerce.
Minister of Trade, Industry and Energy Kim Jeong-gwan is scheduled to return from the United States at around 5:40 p.m. today (September 13).
According to the government, Minister Kim met with U.S. Secretary of Commerce Howard Lutnick and other officials in New York from September 10 to 12 (local time) to conduct final negotiations regarding U.S. investment projects.
The two sides are expected to have made final adjustments to details such as the scale and conditions of investment, centered around the construction of the Texas Encinal gas-fired combined-cycle power plant and large-scale nuclear power plant construction projects, which have been reviewed as leading candidates.
The Ministry of Trade, Industry and Energy recently briefed the National Assembly behind closed doors on the progress of follow-up negotiations for South Korea-U.S. strategic investments.
A parliamentary official who received the briefing stated, "We have been told that the two projects are nearly finalized."
The government maintains its stance that specific investment targets have not yet been finalized and that consultations between the two countries are ongoing.
As Minister Kim plans to report the negotiation results to the National Assembly on September 17, the outline of the U.S. investment projects is expected to be revealed soon.
Last year, the government promised a total of 350 billion dollars in investments to the U.S., including 150 billion dollars in the shipbuilding sector and 200 billion dollars in strategic investment sectors, under the condition of lowering tariffs from 25 percent to 15 percent, while attaching a safeguard known as "commercial rationality."
The MOU includes a provision stating that only investments with commercial rationality will be recommended to the U.S. President.
Commercial rationality refers to cases where it is judged that sufficient cash flow will be generated to repay the principal and interest within the investment period.
However, the final decision-making power regarding the investment rests with U.S. President Donald Trump.
According to the MOU, an investment committee chaired by Secretary Lutnick will recommend projects after consultations with the South Korean side, but it was agreed that President Trump will make the final decision on the investment destinations.
Ultimately, this means the structure carries inherent limitations where unprofitable projects could be selected as U.S. investment projects depending on the intentions of President Trump.
(Photo provided by the Ministry of Trade, Industry and Energy, Yonhap News)
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