The South Korean government reported its plans for the first U.S. investment project to the National Assembly just before the Chuseok holiday, but no official announcement has been made by either country yet. The government stated that while discussions between the two nations have concluded, internal procedures in the United States are causing delays.
According to relevant departments on the 27th, the Ministry of Trade, Industry and Energy presented the progress of U.S. investment negotiations and project plans to the National Assembly's Committee on Trade, Industry, Energy, Small and Medium Enterprises on the 22nd. The Ministry of Economy and Finance also provided a related report during a full meeting of the National Assembly's Committee on Economy and Finance on the same day.
At that time, the government reported to the National Assembly that the first project involves constructing a gas combined cycle power plant in the Encinada region of Texas. The project is expected to have a capacity of 1.4 gigawatts (GW), with plans to gradually expand the combined cycle facilities after establishing gas turbine power generation equipment. The project is projected to require an investment of $22.3 billion, with an estimated return of approximately $43 billion to $45 billion over 20 years.
Subsequent projects under discussion include the construction of eight large nuclear power plants in the U.S. and the development of LNG in Alaska. In the nuclear sector, discussions are reportedly underway to secure a 5-10% stake in Westinghouse to obtain voting rights. However, both projects require further coordination on specific investment conditions between South Korea and the U.S.
Despite the lack of an official announcement from both governments for five days, expectations for a swift public disclosure have not materialized, even though the U.S. has been urging rapid investment implementation. The government maintains that no new variables have emerged during the final negotiation process.
A representative from the Ministry of Trade stated, "Domestic procedures and discussions between South Korea and the U.S. have been completed, but the process of the investment committee recommending to the U.S. President is still pending."
According to the memorandum of understanding (MOU) on strategic investment signed by both countries last November and South Korea's special law on U.S.-Korea strategic investment, the selection of investment destinations is to be made by the U.S. President following consultations between the two nations. The U.S. President selects investment areas based on recommendations from the investment committee, chaired by the U.S. Secretary of Commerce. The investment committee is required to consult with the U.S.-Korea consultation committee, chaired by the South Korean Minister of Trade, to recommend commercially viable investments.
In South Korea, the Minister of Trade chairs the U.S.-Korea Strategic Investment Project Management Committee, which reviews the project, and the Minister of Economy and Finance chairs the U.S.-Korea Strategic Investment Operations Committee, which deliberates and decides before reporting the intention to proceed with the project to the National Assembly. This process was completed on the 22nd.
There are interpretations that recent events, such as the UN General Assembly and the U.S.-China summit, have significantly influenced the political schedule of U.S. President Donald Trump. President Yoon Suk Yeol mentioned on his X (formerly Twitter) account that "after intense negotiations, discussions on the 'strategic investment' projects between South Korea and the U.S. have made significant progress," suggesting that there are not major disagreements regarding investment destinations.
As a result, the final announcement is likely to occur by the end of this month or early next month, as President Trump may need to demonstrate results ahead of the midterm elections scheduled for early November.
* This article has been translated by AI.
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