Seoul cites legislative process, FX concerns in delayed rollout of US investment plan

Kim Yong-beom, presidential policy chief, delivers a briefing at the former presidential office in Yongsan, Seoul, Dec. 5, 2025. Joint Press Corps.

Korea will need more time to begin implementing its commitment to invest $200 billion in the United States, a senior official at the presidential office said Wednesday, citing the slowness of the legislative process and concerns about the potential effects of foreign exchange rate fluctuations on the investment amount.

Kim Yong-beom, presidential policy chief, told reporters that U.S. President Donald Trump’s recent announcement to raise tariffs on Korean goods from 15 percent to 25 percent appears to stem largely from frustration over the slowness of the National Assembly’s approval of related legislation.

“U.S. dissatisfaction is entirely rooted in legislative delays and that is also how the U.S. side explains it,” Kim said.

He said Washington understood that a Korea-U.S. investment fund — a joint vehicle intended to channel Korean capital into U.S. projects — could not be launched until Seoul completes the required legislative steps, including the passage of special laws governing overseas investments. Kim added that the government had repeatedly told U.S. officials through working-level channels, including talks between the Ministry of Trade, Industry and Resources and the Department of Commerce, that formal reviews of investment projects would not be possible before lawmakers act.

While the U.S. side understands the procedural requirements, Kim said frustration has accumulated over the National Assembly’s slower-than-expected pace.

He added that the U.S. administration is eager to move quickly on investment projects based on the joint fact sheet memorandum of understanding (MOU) agreed upon during two Korea-U.S. summits last summer and fall, an expectation that the presidential office believes likely underpinned Trump’s recent remarks.

The presidential office expects substantive legislative discussions to begin in February, when the National Assembly’s standing committees are scheduled to take up the bill.

Kim stressed that bipartisan cooperation in the Assembly would be essential, expressing hope that the bill could be passed by consensus next month. He said the government would fully explain the urgency of the legislation to lawmakers and clearly communicate Korea’s efforts to Washington.

While reaffirming the government’s commitment to securing parliamentary approval, Kim noted that Korea has already earmarked 1.2 trillion won ($840 million) in its 2026 budget as preliminary funding for U.S. investments. He added that, unlike Japan, Korea requires a specific legal framework to proceed and must also take greater precautions against volatility in the foreign exchange market.

Looking ahead, Kim said Minister of Trade, Industry and Resources Kim Jung-kwan is slated to travel to Washington after completing his visit in Ottawa to meet U.S. Commerce Secretary Howard Lutnick, while Trade Minister Yeo Han-koo also plans to advance his consultations with U.S. Trade Representative Jamieson Greer.

“The government will work closely with the National Assembly and respond calmly, in line with President Trump’s stated desire to ‘find solutions together,’” Kim said.

Meanwhile, regarding Trump's recent remarks suggesting that Korea’s U.S.-bound investment could be used for a natural gas development project in Alaska, Kim said, “As we have stated repeatedly, the top priority principle for U.S. investment projects is commercial viability.”

Kim added that while preliminary discussions may involve assessing whether certain projects are reviewable, details cannot be disclosed due to confidentiality clauses.

“However, it is not Alaska LNG,” he said, drawing a clear line. “The projects presented to us are not related to Alaska, and we will only review those that meet the standard of commercial rationality.”