Minister Kim Junggwan: "First US Investment Project Focused on Energy... Announcement Possible by Late August" (Comprehensive)

"Negotiations in Final Stages" Upon Arrival in US

Government to Demand 15% Tariff Ceiling Be Upheld Despite Section 301 Tariffs

Back-to-Back Meetings With Administration and Congressional Leaders, Including Lutnick

Korea-US Shipbuilding Cooperation Center Opens

Yonhap News Agency

Minister of Trade, Industry and Energy Kim Jung-gwan announced that the first project for South Korea's strategic investment in the United States is being discussed with the US side, focusing on the energy sector. Since negotiations are now in their final stages, there is also a possibility that the first investment project could be released as early as the end of August. As the US is preparing to announce tariffs under Section 301 of the Trade Act, which would replace the current global tariffs under Section 122, Minister Kim plans to deliver the position that the 15% tariff ceiling, as stipulated in the Korea-US trade agreement, must be strictly maintained.

On the 22nd (local time), after arriving at Dulles International Airport near Washington, D.C., Minister Kim told reporters regarding the first US investment project, "From our standpoint, a project with stable cash flow is preferable," and added, "In that sense, we believe an energy-related project is the most advantageous, so we are focusing our discussions with the US side on such projects."

The government is promoting a $200 billion strategic investment in the United States, in accordance with the Korea-US trade agreement. Until now, shipbuilding, nuclear power, liquefied natural gas (LNG), energy infrastructure, and advanced manufacturing have been considered as potential candidates for the first investment project, but with Minister Kim directly mentioning the energy sector, the contours of the first project are becoming increasingly concrete.

This focus on energy projects reflects the view that sectors such as power generation, transmission, and LNG can generate stable long-term returns, making it relatively easier to secure commercial viability and recoup investments. The government plans to select the first project by comprehensively examining not only the investment scale, but also profitability, risk, and the synergy effects with domestic industries.

Regarding the announcement timetable for the project, Minister Kim stated, "We are now almost at the final stage," and added, "If we successfully conclude negotiations on key issues, I think we will be able to carry out the announcement by late August or in September."

Another key issue during this visit to the US is the Section 301 tariffs under US trade law. After the US Supreme Court found reciprocal tariffs unlawful last February, the US government has imposed a 10% global tariff based on Section 122 of the Trade Act. These tariffs, however, expire on the 24th after a 150-day implementation period.

The Trump Administration is considering a new tariff regime under Section 301 to replace the global tariffs. The US has been conducting investigations against major trading partners, including South Korea, on grounds of overproduction and forced labor, and among these, the investigation on forced labor has essentially been concluded.

There is a possibility that South Korea may become subject to a 12.5% tariff because it does not operate a separate import ban system for goods related to forced labor. The government maintains that even if Section 301 tariffs are imposed, any additional burden beyond the 15% tariff cap agreed in the existing Korea-US trade agreement must not be allowed.

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Minister Kim stated, "Coincidentally, the 24th marks the end of the global tariff period, so we plan to discuss that aspect as well." During his visit to the US, he plans to meet with key counterparts including US Secretary of Commerce Howard Lutnick to personally convey the Korean government's position regarding the Section 301 tariffs.

On the recently emerging issue in Korea-US trade relations regarding Coupang, Minister Kim expressed his intention to focus on narrowing the perception gap between the two countries. He said, "There appear to be some misunderstandings and gaps between Korea and the US," and added, "It is our job to clear up any misunderstandings and bridge these gaps."

He further explained, "When we clarify the details related to Coupang, many in the US respond, 'Was that the issue?' or 'We didn't know.' In order to reach a level of understanding that the US can accept, not only the Ministry of Trade, Industry and Energy, but also relevant ministries are working together."

Minister Kim will remain in Washington D.C. until the 25th, meeting with key US government and congressional officials, including Secretary Lutnick. He is expected to discuss not only issues of trade and investment, but also ways to expand bilateral cooperation in industries such as energy, supply chains, and advanced manufacturing.

On the same day, he will attend the opening ceremony of the Korea-US Shipbuilding Cooperation Center in Washington, D.C. The event will be attended by key US government officials, members of both the House and the Senate, shipbuilding-related companies from both countries, and members of the Korea-US parliamentary friendship association.

The Korea-US Shipbuilding Cooperation Center will serve as an official platform providing continuous support for shipbuilding collaboration between the two governments and industries. It is expected to become a base for realizing various collaboration initiatives across the entire shipbuilding industry, including joint project development, technology cooperation, supply chain building, and workforce training.

Before departing, Minister Kim said, "Up until now, we've been promoting Korea-US shipbuilding cooperation more as a 'Masga project.' Now, we are creating an official platform to implement such collaboration. With the participation of key US cabinet members, congressional leaders, and shipbuilding companies from both nations, this event is particularly meaningful."

While the US is advancing the reconstruction of its shipbuilding industry as a national agenda, Korea's shipbuilding sector is regarded as a key partner in areas including ship construction, maintenance and repair, supply chain development, and workforce training. The government plans to use the cooperation center as a focal point to identify investment and joint projects in the US shipbuilding industry, and support domestic shipbuilding and equipment firms in expanding into the US market.

Separately, Yeo Hankoo, Director General for Trade Negotiations, who is also visiting the US, is expected to continue discussions with the Office of the US Trade Representative (USTR), which is conducting the Section 301 investigation. Director General Yeo plans to meet with US trade officials including Jamieson Greer, the USTR representative, to call for compliance with the existing Korea-US agreement and to explain Korea's regulations and policies.

Minister Kim is overseeing discussions on strategic investment and industrial cooperation, while Director General Yeo handles tariffs and trade issues independently with the US side. The government aims to simultaneously advance the US investment project and the response to Section 301 issues through this dual-track approach.

This content was produced with the assistance of AI translation services.