Coordination is advancing over whether the inaugural project under South Korea’s $200 billion U.S. investment plan will focus on energy or semiconductors, with an announcement targeted for the end of August.
South Korea’s Minister of Trade, Industry and Energy, Kim Jung-kwan, met with U.S. Commerce Secretary Lutnick to discuss the inaugural project under the approximately $200 billion U.S. investment plan. A meeting with USTR Representative Jamieson Greer is also being arranged, and the government is expected to finalize the project details and terms with the aim of making an announcement at the end of August.
The United States is urging South Korea to move quickly on implementing the investment, and tensions are reportedly rising against the backdrop of delays in announcing the inaugural project. While South Korea continues to coordinate the selection of specific investment targets, it has reportedly been considering energy-sector candidates as a priority. U.S. media have cited the slow pace of investment implementation as a reason for the delay.
The focus of the investment is shifting between the energy and semiconductor sectors. South Korea reportedly views energy-sector investment as the leading option, while there is speculation that the United States is seeking expanded local production by Samsung Electronics and SK hynix. A proposal to build a gas-fired power plant in Encinal, Texas, has been cited as one example.
Going forward, the outcome of the investigation into excess supply under Section 301 of the U.S. Trade Act is also expected to be a major agenda item, alongside discussions with Greer. As the South Korean government advances investment in domestic semiconductor clusters, the direction of the inaugural project could be reconsidered depending on the U.S. requests.