Korea-U.S. Strategic Investment Corporation’s First Parliamentary Audit... Texas, Alaska Projects Under Close Scrutiny

National Assembly Finance and Economy Planning Committee audits KUIC and others on Oct. 20

Profit-and-loss sharing for Texas power plant project

Questions on profitability of Alaska LNG project and other issues

The Korea-U.S. Strategic Investment Corporation (KUIC), which will oversee $350 billion in investments in the United States (about KRW 466 trillion), has undergone its first parliamentary audit since its launch. The audit addressed how to share profits and losses from the first U.S. investment project, the construction of a gas-fired combined-cycle power plant in Texas, as well as the profitability of the Alaska liquefied natural gas (LNG) project.

Yonhap News Agency

The National Assembly’s Finance and Economy Planning Committee conducted an audit on the morning of October 20, examining the Strategic Investment Corporation and the Export-Import Bank of Korea, among others. The corporation was established in June under the Special Act on U.S. Investment. It is responsible for establishing, managing and operating the Strategic Investment Fund to finance investments in the United States and shipbuilding cooperation.

At the audit of the Strategic Investment Corporation, lawmakers raised concerns about how profits and losses from the Texas power plant project, the first U.S. investment project, would be shared. Bae Jun-young, the People Power Party’s ranking member on the committee, said, “It is unclear how much the U.S. side would bear if the Texas project incurs investment losses.” He added, “The special act also stipulates that the government must make up any losses in the corporation’s financial statements that cannot be covered by its reserves. Investment failures must not become a burden on the public.”

The Alaska LNG project, which the U.S. side announced unilaterally as finalized, also came under scrutiny. Bae said, “Even if the United States makes a request, the Strategic Investment Corporation must voice its opposition if repayment of principal and interest is uncertain.” The corporation’s staffing and execution structure was also raised at the audit. According to data submitted to Park Soo-young, a People Power Party lawmaker, the corporation had filled only about 65% of its 46 authorized positions as of October 13.

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