Korea, U.S. Stall Over First Investment Project
The South Korean government is experiencing severe difficulties in the process of materializing ‘Project No. 1’ for investment in the U.S., which will cut the ribbon for the $350 billion investment package in the U.S. This is because Minister of Trade, Industry and Energy Kim Jeong-gwan urgently dep
South Korea faces challenges in initiating a $350 billion U.S. investment project, known as 'Project No. 1.' Minister of Trade, Industry, and Energy Kim Jeong-gwan traveled to Washington D.C. to discuss investment disputes with U.S. Secretary of Commerce Howard Lutnick, but failed to reach a compromise within the expected timeframe.
The delay stems from differing priorities between South Korean businesses and the U.S. administration. While South Korea emphasizes profitability and energy sector investments such as gas combined cycle power plants, the U.S. administration pushes for memory semiconductor plants to be built locally, particularly by Samsung Electronics and SK Hynix.
This contradiction poses difficulties for South Korean companies, as the U.S. could threaten to scrap the 15% tariff agreement and impose additional trade pressure under Section 301 of the Trade Act. The delay in 'Project No. 1' announcement could intensify trade friction between South Korea and the U.S.
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