Minister Kim Jonggwan: "Significant Progress in U.S. Investment Talks... First Project to Be Announced in September" (Comprehensive)

Two Days of Intensive Negotiations with Lutnick: "Resolved Numerous Issues"

Energy Sector Likely for First Investment Project: "Difficult to Switch to Another Field Now"

Section 301 Tariff: "Mutual Understanding on 15% Cap... Announcement Ex

Yonhap News Agency

Kim Jonggwan, Minister of Trade, Industry and Energy, commented on the negotiations regarding strategic investments in the United States, stating, "There has been significant and meaningful progress," and projected that the first project would become visible in September 2026. The first area of investment will focus on the energy sector, which has been the subject of previous discussions. He also stated that, regarding tariff issues related to the U.S. Trade Act Section 301 investigation, both Korea and the U.S. reaffirmed their consensus to maintain the previously agreed-upon "15% tariff ceiling."

Minister Kim met with reporters upon returning to Korea via Incheon International Airport on August 20, after completing his U.S. visit, and said, "There were several outstanding issues at the working-level, and during our discussions, there was a suggestion that these matters should be resolved at the ministerial level. In that respect, there has been significant and meaningful progress this time."

On August 17–18 (local time), Minister Kim held two consecutive meetings with Howard Lutnick, U.S. Secretary of Commerce, focusing intensively on strategic investment projects into the United States. He explained, "Over two days, I held meetings with Secretary Lutnick and feel we were able to resolve many issues. While I had to return due to scheduling, we have agreed to work toward a final consensus through a video conference next week."

The government’s initial target for announcing the first U.S. investment project was late August to early September; however, the timeline has shifted to sometime in September 2026. Minister Kim said, "I think it will take place in September rather than at the end of August or the beginning of September. Considering the processes and procedures involved in the discussions, both countries have come to a mutual understanding that September is realistic."

The final coordination for the first investment project is ongoing, with the focus remaining on the energy sector. There have recently been expectations that the investment target might shift, as the U.S. side requested investment in the semiconductor sector, but Minister Kim downplayed the possibility. Minister Kim stated, "Currently, we are discussing with the energy sector at the center. If we were to change the sector at this point, it would become impossible to meet the timeline." He stressed, "We believe the focus should remain on energy, and we are actively negotiating with that in mind." During his visit to the U.S. last month, Minister Kim also noted that, given the relative stability of cash flow, the energy sector is relatively favorable, and that discussions with the U.S. were centered on this area.

Kim Junggwan, Minister of Trade, Industry and Energy (left), Howard Lutnick, U.S. Secretary of Commerce, and Michelle Steel, U.S. Ambassador to Korea, are seen conversing at the opening ceremony of the Korea-U.S. Shipbuilding Cooperation Center held on the 23rd (local time) at the Mayflower Hotel in Washington DC, USA. Photo by Yonhap News Agency

Regarding the additional tariffs resulting from the Trade Act Section 301 investigation, Minister Kim conveyed that both sides reached a consensus on maintaining the previously agreed-upon 15% tariff ceiling between Korea and the U.S. During his visit, Minister Kim also met with Jamison Greer, U.S. Trade Representative (USTR), to discuss the pending issues.

Minister Kim stated, "When I met with Representative Greer, both sides understood each other regarding the 15% ceiling," adding, "(The U.S. side indicated) the announcement is not far off, and we discussed the topic over the past 2 to 3 weeks." He further explained, "We also expect it will likely be around early September."

However, Minister Kim reiterated his intention not to let down his guard until the U.S. makes its final decision. He said, "Given the U.S. often needs extended preparation periods, I can't say anything definite, but as of now, there is mutual understanding about the previously discussed 15% ceiling. Nevertheless, since unexpected situations can occur at any time, we will remain vigilant and continue to monitor matters closely."

Regarding concerns about a gap in Korea-U.S. trade negotiations due to the dismissal of Han-Koo Yeo, the previous Trade Minister, Minister Kim emphasized that the organization as a whole can respond. He said, "We shared the details of the situation with USTR. The relationship between Korea and the U.S. does not hinge on a single individual, but has always been driven by the collective efforts of the entire organization."

He added, "Should any vacuum arise, as in this case, I will personally step up to meet Representative Greer. We will continue to take proactive measures to ensure that no damage comes to the national interest."

Regarding the possibility of another U.S. visit, Minister Kim said, "There is no plan as of now. For the time being, we have agreed to conduct our discussions via video conference next week."

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