Trade Minister Kim Jungkwan Heads to U.S. for G20, All Eyes on First U.S. Strategic Investment Negotiations

Heading Back to the U.S. After Just 13 Days
Attending the G20 Innovation Ministers' Meeting, U.S. Investment Declaration Ceremony, and Louisiana Steelworks Groundbreaking
Possible Additional Talks on Korea-U.S. Trade Issues

Yonhap News Agency

Trade, Industry and Energy Minister Kim Jungkwan is set to visit the United States again just 13 days after his last trip. While his official schedule focuses on attending the G20 Innovation Ministers' Meeting and expanding two-way investment between Korea and the U.S., attention is focused on whether final negotiations will be held with U.S. officials ahead of the selection of the first strategic investment project in the U.S., which is expected to be worth USD 200 billion and is due to be finalized in September. In his previous visit last month, Minister Kim held meetings with U.S. Secretary of Commerce Howard Lutnick for two consecutive days, narrowing significant differences over key issues. There is growing speculation that this trip could be pivotal in finalizing the first project.

According to the Ministry of Trade, Industry and Energy on September 1, Minister Kim will visit North Carolina, Washington, D.C., and Louisiana in succession from this day through September 4.

On September 2, Minister Kim will attend the G20 Innovation Ministers' Meeting in Chapel Hill, North Carolina. The meeting will focus on global cooperation for AI innovation, with discussions centered on AI intellectual property rights, AI standards, and AI supply chains.

Of particular interest during this visit is Minister Kim's schedule in Washington, D.C. on September 3. There, he will host an investment declaration ceremony and a roundtable with the Korea Trade-Investment Promotion Agency (KOTRA), aiming to attract investment from U.S. companies in the semiconductors, advanced materials, and offshore wind power sectors to Korea. He will also listen to updates and challenges faced by U.S. firms investing in Korea.

As Minister Kim is staying in Washington, D.C., it is also being discussed that he may hold additional consultations with high-level officials from the U.S. administration on bilateral trade issues, including the strategic U.S. investment plans.

Previously, on August 16, Minister Kim took an unscheduled trip to the U.S., where he met with Secretary Lutnick for two consecutive days to coordinate key points of the first strategic investment project in the U.S. Minister Kim explained that, amid unresolved issues at the working level, he proposed that they be settled at the ministerial level, describing "very meaningful progress" in the negotiations.

Through a trade agreement last year, Korea committed to undertake a total of USD 350 billion in investments in the U.S. Of this, USD 150 billion was allocated to shipbuilding cooperation, and the remaining USD 200 billion is earmarked for strategic investments, with both countries currently working out concrete project plans.

The government initially aimed to announce the first project at the end of August or the beginning of September. However, due to extended discussions over the investment target, project structure, and investment conditions, the target announcement date was pushed back to September. On August 20, Minister Kim stated, "Given the ongoing discussions and procedures, both sides have agreed to proceed in September."

The first project is expected to be in the energy sector. Since July, Minister Kim has said discussions with the U.S. have been focused on energy, citing its stable cash flow and commercial viability. Even after his recent visit, he reaffirmed that energy remains at the center of the talks. However, several issues still require coordination, including not only the investment target but also detailed conditions such as profitability, ownership and governance structure, and investment management methods.

Tariffs remain another unresolved issue. Concerns have been raised that if additional tariffs are imposed under Section 301 of the U.S. Trade Act, the 15% tariff cap previously agreed between the two sides last year could be exceeded. During his last trip, Minister Kim met with USTR Representative Jamieson Greer and reaffirmed the mutual understanding of the 15% cap.

Meanwhile, on September 4, Minister Kim will attend the groundbreaking ceremony for the Hyundai-Posco Louisiana Steelworks (HPLS) in Donaldsonville, Louisiana. This project is part of the Hyundai Motor Group's USD 26 billion investment plan in the U.S., with Hyundai Steel investing USD 5.8 billion. Prior to the ceremony, Minister Kim will meet with Louisiana Governor Jeff Landry to discuss strategic cooperation plans between the two countries, including in the energy sector.

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