Negotiations for the U.S. investment project are facing last-minute challenges. The report to the National Assembly, originally scheduled for today, has been postponed, which is likely to delay the signing of the memorandum of understanding (MOU) expected soon. The government is mobilizing diplomatic and trade channels for final adjustments.
According to relevant departments on the 17th, the Ministry of Trade, Industry and Energy requested the National Assembly's Committee on Industry, Trade, and Small and Medium Enterprises and the Committee on Finance and Economy to postpone the report on U.S. investment that was scheduled for today. With the postponement of the National Assembly report, the signing and announcement of the MOU for the first U.S. investment project, initially anticipated for the 18th, has been indefinitely delayed.
The key issues in the final negotiations revolve around the structure and investment conditions of the U.S. investment project. Among the $350 billion investment resulting from the Korea-U.S. tariff negotiations, the purpose of $200 billion remains unclear. The government maintains that the total investment amount under the strategic investment MOU will be $200 billion, with annual remittances not exceeding $20 billion.
Discussions continue regarding specific projects, with the Texas gas combined cycle power plant being a strong candidate for the first U.S. investment project. However, issues surrounding power demand guarantees and participation of domestic companies remain contentious.
In the nuclear power sector, the method of participation and the cooperation structure with Westinghouse have emerged as variables. The two countries are discussing the introduction of the Korean APR1400 for new large nuclear power plants being constructed in the U.S. While the government advocates for the introduction of the APR1400 for some new large nuclear plants, the U.S. side has expressed reservations.
The pyroprocessing project for handling spent nuclear fuel has also been identified as a new variable. Pyroprocessing is a reprocessing technology that recovers uranium and transuranic elements from spent nuclear fuel through electrochemical reactions. However, if funding is allocated for this project, it could exceed the investment cap of $200 billion.
How profits and losses will be shared is also a key issue. If the viability of some projects falls short of expectations, the extent of risk that the Korean side is willing to bear will directly impact future investment stability.
As the two countries' agreement remains elusive, diplomatic channels have also joined the negotiations. Minister of Foreign Affairs Park Jin departed for the U.S. today and is scheduled to meet with U.S. Secretary of State Marco Rubio in Washington, D.C., on the 18th (local time). Minister of Industry Lee Chang-yang also recently visited the U.S. to engage in last-minute negotiations regarding U.S. investment with U.S. Secretary of Commerce Howard Rutnik.
The government is expected to adjust investment conditions while maintaining the investment limit and considering the viability and risk of individual projects. Before his departure, Minister Park stated, "I understand that there are procedural issues domestically rather than disagreements between Korea and the U.S., and that the U.S. investment issue will come up in the overall process of reviewing bilateral relations."
* This article has been translated by AI.
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