[2026 Parliamentary Audit] Finance and Economy Planning Committee Intensifies Scrutiny of Korea-U.S. Strategic Investment Corporation: "Strengthen Organization and Risk Management"

Opposition: "Was a risk review conducted before the $2.4 billion remittance?"
Ruling party calls for more international law specialists

The National Assembly’s Finance and Economy Planning Committee focused on risk management for U.S. investment projects and organizational stability during its first parliamentary audit of the Korea-U.S. Strategic Investment Corporation on Oct. 20. Ruling and opposition lawmakers pointed to gaps in key staffing and stressed the need to recruit more specialists and strengthen risk reviews during the project selection stage.

At the audit, Im I-ja of the People Power Party pointed to vacancies among the corporation’s executives, who are responsible for investment reviews and execution, as well as fund management. “There is no executive in charge of investments, no head of the Strategic Investment Division, and no auditor to review internal controls,” she said. “The organization looks extremely unstable for one tasked with such a weighty mission. Hire executives as soon as possible.”

Park Jongwon, president of the Korea-U.S. Strategic Investment Corporation, drinks water before the start of a parliamentary audit of the Export-Import Bank of Korea and other institutions at the National Assembly on Oct. 20, 2026. Photo by Yoon Dongju.

Im also asked whether the investment recovery proceeds from a Texas gas-fired combined-cycle power plant, estimated at $43 billion to $45.4 billion over the next 20 years, were calculated on a pre-tax or after-tax basis. Park Jongwon, president of the Korea-U.S. Strategic Investment Corporation, replied, “When we consult with the United States, it is understood that no taxes will be paid.” Im criticized the corporation for failing to manage and report transparently the potential losses resulting from higher interest rates and raw material prices, increased construction costs, and construction delays.

Lee Jong-wook of the People Power Party also again raised the vacancy in the Strategic Investment Division chief position. After Park explained that the previous chief had “resigned for personal reasons,” Lee said, “A person who should be performing an important function at the investment corporation has been absent for an extended period,” and called for the organization to be put in order promptly.

Lee also questioned whether the Risk Management Committee had reviewed the project before the first remittance for U.S. investment. “Shouldn’t the Risk Management Committee have met before the first $2.4 billion remittance?” he asked. “Selecting investment projects is the biggest risk, so it makes no sense to manage risks only after projects have been selected.”

The Democratic Party of Korea also called for stronger expertise and stability in the corporation’s early stages. Democratic Party lawmaker Jeong Seong-ho said, “Given the unique nature of investment in the United States, the most important thing is to ensure commercial viability, which means managing risks.” He stressed the need to recruit legal experts in international trade law and international transactions law.

Park replied, “Of the 50 authorized positions, 32 have been filled, and about 11 specialists in international law are currently working here.” Jeong stressed, “These contracts will not end with the current administration, so the corporation must properly recruit specialists to prepare for potential legal risks in the future.”

Democratic Party lawmaker Moon Jin-seok examined the profitability of the Texas gas-fired combined-cycle power plant and a nuclear power project under consideration. He expressed concern, saying, “Given past contract cases and other factors, the profitability of the nuclear power project is questionable.” Park responded, “I understand that the government is in discussions with the U.S. side,” adding, “The details will need to be assessed over time.”

Moon stressed, “If the president of the investment corporation concludes that the structure will not generate a profit, he must speak out forcefully,” adding, “It is also the corporation’s role to communicate frequently with the government’s negotiating team and strengthen our negotiating position.”

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