South Korea’s Industry Ministry on Tuesday denied that semiconductors are being considered as the first project under Seoul’s US investment commitments, as Industry Minister Kim Jung-kwan holds last-minute talks in Washington over the package and related tariff issues.
“It is not true that semiconductors are being discussed as a candidate for the first strategic investment project in the US,” the ministry said in a statement.
The denial followed a local newspaper report that Seoul had initially considered an energy project but shifted course after Washington strongly requested investment in US memory chip production facilities.
The ministry confirmed that the two governments remain in talks over potential investment projects but declined to disclose details.
“The government has continued communicating with the US side regarding strategic investment projects,” it said. “We cannot confirm the specifics of discussions between the two countries.”
Kim departed for Washington on Sunday, about three weeks after a July 22-25 visit focused on investment and shipbuilding cooperation.
Speaking to reporters after arriving in the US, Kim said Seoul had aimed to announce the first project in late August or early September. However, additional working-level issues emerged as negotiations entered their final stage.
“As we approach the end of the process, various specific issues are arising at the working level,” Kim said.
His return date remains undecided and could change depending on the progress of the talks, according to the ministry.
Seoul and Washington seek to accelerate implementation of the investment commitments made under last year’s tariff agreement. Uncertainty has also increased following the dismissal of Trade Minister Yeo Han-koo on Friday.
Kim is expected to discuss the investment package alongside potential additional US tariffs under Section 301.
Concerns have grown that duties tied to forced labor and an ongoing investigation into industrial overcapacity could push tariffs on some Korean products above the 15 percent ceiling set under the bilateral agreement.
Washington lowered tariffs on Korean goods from 25 percent to 15 percent last year in exchange for $350 billion in Korean investment commitments.
Of the total, $150 billion was allocated to shipbuilding cooperation. The two governments are still negotiating how to deploy the remaining $200 billion.
A gas-fired combined-cycle power plant in Texas has been mentioned as one potential first project, although key terms have yet to be finalized.
By Jo He-rim (herim@heraldcorp.com)
