Seoul launches state-run body to implement $350 bil. US investment pledge

Finance Minister Koo Yun-cheol speaks during a foundation ceremony celebrating the launch of Korea-U.S. Strategic Corporation held in Sejong, Thursday. Courtesy of Ministry of Finance and Economy

State-run Korea-U.S. Strategic Investment Corp. (KUIC) officially set sail Thursday with the task of implementing Korea's $350 billion investment pledge to the United States in return for lower tariffs, the finance ministry said.

"Through the launch of the KUIC, the alliance between Korea and the United States has developed beyond the economy and security to strategic industries, further advancing our solid partnership," Finance Minister Koo Yun-cheol said during the opening ceremony in Sejong.

"Korea and the U.S. will combine each other's strengths to leap forward together as an indispensable hub in the global supply chain," Koo added.

The new company, based in the central city of Sejong, was launched after the National Assembly passed the Special Act for Korea-U.S. Strategic Investment Management in March.

In October last year, Seoul and Washington reached an agreement on Korea's $350 billion investment pledge.

Under the law, the new company will operate for 20 years, with the government providing 2 trillion won ($1.3 billion) for its establishment.

"The U.S., with the world's most advanced technologies and a massive market, has joined hands with Korea, which boasts strong manufacturing capabilities," Koo said, noting the alliance will extend to future growth industries, including artificial intelligence (AI).

Koo also called for the KUIC to implement investment projects based on commercial viability and strategic considerations, helping competitive Korean companies participate in the reshaping of U.S. manufacturing.

On the previous day, Park Jong-won, who served as deputy trade minister until October last year, was named the head of the KUIC.

"The state-run company is dedicated to systematically implementing bilateral investment cooperation amid a major transition in which a new economic order is taking shape," Park said during the ceremony.

"We will spare no effort to secure a sustainable foundation for growth in strategic industries agreed upon by the two countries, including energy and shipbuilding, while bolstering bilateral industrial cooperation," he added.