South Korean opposition lawmaker warns on risks in US investment package

Seoul, South Korea - A South Korean opposition lawmaker has called for parliamentary scrutiny of the country's planned US investment package, expressing concerns over the potential financial risks involved. This comes as South Korea and the United States work to finalize projects under a $350 billion US investment commitment that was part of a trade deal reducing US tariffs on South Korean goods to 15%.

Kim Sung-won, chairman of the National Assembly’s trade committee, met with South Korea’s top trade envoy, Park Jung-sung, to review the status of the negotiations. Kim expressed worry that South Korean-designed nuclear reactors might be barred from entering the US market, while the conditions for a power plant project were deteriorating. He also highlighted concerns that the US could potentially reap most of the profits while South Korea could bear the possible losses.

The discussions have centered around energy investments, including a substantial gas-fired power project in Texas and the construction of up to eight nuclear reactors. Negotiations have been complicated by disagreements on reactor technology, financing, and the distribution of profits and losses.

Kim, a member of the opposition People Power Party, criticized the government for providing lawmakers with an Industry Ministry briefing instead of seeking formal consent. He emphasized that President Lee Jae Myung acknowledged that some aspects of the negotiations would be challenging to accept. Lee stated that while external challenges exist, they could be addressed through careful deliberation, sound judgment, and prioritizing the lives, safety of people, and national interests of South Korea.

The Industry Ministry has not yet responded to inquiries regarding the lawmaker’s request for parliamentary approval. The ministry had initially postponed a planned parliamentary briefing last week, citing the need for additional time to continue talks with Washington. The briefing is now expected to occur on Tuesday, according to a Seoul official familiar with the matter and media reports.