1st US project under tariff pact nears finish line
Summary
Industry Minister Kim Jung-kwan said South Korea’s first U.S. investment project under last year’s tariff agreement is nearing a deal but still needs more negotiations. He made the remarks at Incheon International Airport after a three-day trip to the United States. Seoul wants to finalize and announce the deal this week. The first project has not been disclosed, though a Texas gas-fired power plant and a nuclear power plant were cited as possible destinations.
Key Facts
- In return for lowering U.S. reciprocal tariffs from 25 percent to 15 percent, Seoul committed last year to invest $350 billion in the United States.
- Of that package, $150 billion is tied to the shipbuilding sector.
- Kim said he spoke with U.S. Commerce Secretary Howard Lutnick during the trip and plans to discuss the remaining issues by video early this week.
Industry Minister Kim Jung-kwan speaks to reporters at Incheon International Airport upon returning from his three-day trip to the United States, Sunday. Yonhap
Industry Minister Kim Jung-kwan said Sunday that Korea's first investment project in the United States under last year's bilateral tariff agreement is nearing a deal but still needs further negotiations.
The minister made the remarks at Incheon International Airport upon arrival from his three-day trip to the U.S., where he worked to finalize details of Seoul's first U.S. investment project related to the tariff agreement with U.S. officials, including Commerce Secretary Howard Lutnick.
In return for lowering U.S. reciprocal tariff rates from 25 percent to 15 percent, Seoul committed last year to investing $350 billion in the U.S., including $150 billion in the shipbuilding sector.
"There are still a number of issues remaining ... I plan to discuss (them with the U.S. side) via video again early this week," Kim told reporters, without elaborating on the remaining issues.
"It is true that we have come close to an agreement on many issues, but there remain differences," he said. "It is not over until we finally sign (the deal)."
The minister said Seoul seeks to seal the deal within this week and, if possible, announce it to the public also this week.
The minister also did not elaborate on which industrial sectors the first investment project would target, although the construction of a large-scale gas-fired power plant project in Texas and a nuclear power plant have been cited as potential investment destinations.
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