[On Site] Minister Kim Jungkwan Says "Came to the U.S. to Finalize Investment Negotiations" (Comprehensive)

"Negotiations Ongoing Until Final Signing"

Final Coordination of U.S. Investment

On the 10th (local time), Kim Junggwan, Minister of Trade, Industry and Energy, stated, "I have come to the United States to finalize the ongoing investment negotiations with the U.S." It is also reported that Minister Kim will attend the 9/11 memorial event this year for the second consecutive year, as he did last year, which became a turning point for U.S.-Korea tariff and investment negotiations.

Kim Junggwan, Minister of Trade, Industry and Energy, arrived at Newark Liberty International Airport in New Jersey on the 10th (local time). New York, USA – Photo by Yoonju Hwang

Meeting with reporters including The Asia Business Daily at Newark Liberty International Airport in New Jersey on that day, Minister Kim was asked if this trip to the U.S. represents the final stage of adjustments in the investment negotiations. He responded, "Until the final signing takes place, the negotiations should be considered ongoing."

It is known that Minister Kim’s itinerary includes attending the 9/11 memorial event in New York on the 11th. If attendance is confirmed, it will mark his second participation following last year. When asked specifically about his plans to attend the memorial event, Minister Kim said, "It is not a personal schedule; my agenda is to finalize the details of the negotiations," avoiding a direct answer.

Minister Kim’s participation in the 9/11 memorial ceremony originated from his connection with U.S. Secretary of Commerce Howard Lutnick. Secretary Lutnick, formerly CEO of investment bank Cantor Fitzgerald, lost his brother and about 650 company employees in the September 11, 2001 attacks. Since then, he has held annual memorial events to honor the victims.

According to an interview Minister Kim gave to the media last year, the U.S.-Korea negotiations at the time had reached a deadlock after the U.S. side demanded the entire 350 billion dollar investment be paid in cash. The relationship had become so strained that Secretary Lutnick did not respond to Minister Kim’s contacts.

Minister Kim informed Secretary Lutnick that he would attend the memorial ceremony solely for remembrance, without discussing the negotiations, to which Secretary Lutnick expressed his gratitude. Although negotiations did not take place on the day of the memorial, Lutnick’s side proposed a meeting the next day, resuming dialogue. Thereafter, the U.S. began to seriously consider Korea’s plan for phased investments, opening a breakthrough in the negotiations.

With Minister Kim again attending the memorial at the final stage of the current investment talks, attention is focused on whether he may coordinate key issues with Secretary Lutnick and other senior U.S. officials.

On the same day, The Wall Street Journal (WSJ), citing sources familiar with the matter, reported that South Korea and the United States are set to announce a massive energy investment package exceeding 100 billion dollars. The package is said to include the construction of up to eight nuclear reactors in the U.S. as well as a natural gas power plant project in Texas.

According to WSJ, the two countries are finalizing two agreements as early as next week with the aim of making the announcement shortly. However, as negotiations remain ongoing, the specific investment details and announcement timing could still change.

The first project under consideration is a nuclear power project to supply electricity needed for the expansion of artificial intelligence (AI) data centers in the U.S. The initial reactors will reportedly use designs from Westinghouse, while subsequent projects are considering the use of Korean-designed nuclear reactors.

Another investment under review is a natural gas power plant project in Texas, worth about 20 billion dollars. This plant is also planned to supply electricity to nearby AI data centers.

WSJ reports that, if negotiations proceed as planned, Korea is preparing to execute over 2 billion dollars in initial funding by the end of this month. Korea’s annual spending cap for investments has been set at 20 billion dollars under a U.S.-Korea agreement, with total investments anticipated to be phased over several years.

Asked about the report that more than 2 billion dollars in initial investment will be executed by the end of this month, Minister Kim answered, "I cannot confirm specific details yet" and added, "Please watch how the situation unfolds."

Regarding speculation that the Texas Encinal Gas Combined Cycle Power Plant project, valued at 22.3 billion dollars, is the leading candidate for Korea’s first major investment in the U.S., he said, "I do not think it is appropriate to disclose details of the negotiations at this time," and added, "I will share more information once the final results are out."

The primary issue in the final stage of negotiations is reportedly the profit and loss settlement structure for the investment project. While the initial memorandum of understanding (MOU) between the U.S. and Korea specified an "umbrella-type" special purpose vehicle (SPV) structure to distribute the risk of loss across multiple projects, the U.S. side is now requesting that profits and losses be calculated separately for each project, so the two sides are coordinating the final investment structure.

When asked whether there had been discussions about the umbrella SPV and project-based settlement structures, Minister Kim was cautious, saying, "The specifics are still under negotiation, so I would ask for your patience."

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