ED Close gaps in Korea-US relations

• Published Sep 21, 2026 1:20 PM KST

Lee should use UNGA to wrap up negotiations on $350 billion investment pledge

Despite Seoul's $350 billion investment pledge to the U.S. and President Lee Jae Myung considering support for restoring free passage through the Strait of Hormuz, relations between Korea and the U.S. remain tense. Without a clear, transparent interpretation and agreement, neither side is likely to gain anything.

Seoul is expected to announce the first project under its investment pledge before the Chuseok holiday later this week. The announcement, which was initially scheduled for last week, faced a delay due to "commercial viability" issues and continued discussions over contentious provisions, as Lee said during a press conference on Friday.

Among several points of contention are the proposed $22.3 billion Encinal natural gas-fired combined-cycle power plant in Texas — which emerged as a leading candidate for the first project — as well as the building of eight nuclear reactors in the U.S. and a liquefied natural gas project in Alaska.

Korea is also seeking to increase its stake in Westinghouse, a move the U.S. side seems to oppose. Of the eight nuclear reactors, Seoul hopes two will be Korean-designed APR1400 units, while the United States wants all eight to be AP1000 reactors. If the U.S. demands are accepted, it would limit Korea from creating opportunities for its nuclear technology and companies.

When the two countries agreed on the investment package last year in exchange for the U.S. imposing a 15 percent flat tariff on Korean imports, both sides emphasized that the investments should be commercially viable. The remaining gaps before the launch of Korea's first investment project could be difficult to close. However, if taken holistically with consideration to mutual interests and future growth, it could be narrowed to benefit both Korea and the United States.

Another bilateral issue looming is whether Korea will contribute to ensuring freedom of navigation through the Strait of Hormuz as the Iran war drags on.

In Friday's press conference, Lee said that Korea will not deploy troops to the war in a way that could drag the country into the conflict, but is considering ways to strengthen its maritime security role to protect Korean commercial vessels, oil shipping routes and its citizens. Foreign Minister Cho Hyun, in his meeting with his U.S. counterpart, State Secretary Marco Rubio, in Washington, reaffirmed that Korea will contribute "substantively" to restoring free passage in the strait.

Troop deployment is a highly sensitive issue in Korea. A survey conducted by STI and released by the Hankook Ilbo on Sunday found that 52.2 percent of the respondents opposed troop deployment to the Strait of Hormuz, with only 26.1 percent signaling approval, while another 21.7 percent said they were unsure. As one of the major importers of oil from the region and under U.S. President Donald Trump's diplomatic and trade threats, the Korean government and the public are facing the challenging task of making a difficult but wise decision.

Lee should make the most of the so-called diplomatic "super week" in New York as the United Nations General Assembly convenes. Japan is reportedly seeking a summit between Prime Minister Sanae Takaichi and Trump on the sidelines of the General Assembly. Chinese President Xi Jinping is also slated to hold talks with Trump on Sept. 24.

Cheong Wa Dae must make every effort to give Lee a chance to engage Trump in talks in order to close lingering gaps in both its investment pledge and the Hormuz issue. Lee should relay the importance of the investment package's commercial viability for Korean companies as well the Korean public's sensitivity to any overseas military deployment. Doing so can offer an opportunity for the two allies to find a viable compromise, which must uphold the interests of both Seoul and Washington.