Korea’s first U.S. investment project expected after June: Industry Min...

(Minister of Trade, Industry and Resources)

The South Korean government could announce the first project under the new Special Act on Investment in the United States as early as June, according to Kim Jung-kwan, Minister of Trade, Industry and Resources, on Wednesday

Kim’s remarks were made during a press availability upon arrival at Dulles International Airport near Washington, D.C. on Wednesday, local time.

“As for specific details regarding the first U.S. investment project, we may be able to discuss them after the law takes effect in June,” Kim said.

The Special Act on Strategic Investment Management with the United States was passed by the National Assembly in March and is scheduled to take effect on June 18.

When asked whether a liquefied natural gas (LNG) export terminal project in Louisiana was being considered as the first investment project, Kim did not give a direct answer, saying that “it is true that it was (under consideration), but it is still too early to say whether it will become the first project or not.”

Korea and the U.S. are currently discussing multiple projects, which include the Louisiana LNG terminal project, a desalination project in California, and nuclear power projects, sources said.

The Louisiana LNG project, which had been widely viewed as the leading candidate for the first investment project, has seen its business viability improve significantly due to the recent Middle East conflict, but opposition from existing local investors is now emerging as a variable.

From the perspective of shareholders who have already invested, additional investment could dilute their stakes, sources said.

Kim also addressed the Section 301 investigation being conducted by the Office of the United States Trade Representative (USTR) against Korea and other countries.

“I understand that the purpose of the investigation is to restore the 15 percent tariff,” he said. “I believe any U.S. measures resulting from the investigation will likely remain within that range. We will do our utmost to ensure they stay within that range.”

Ahead of the June 18 implementation of the investment law, Kim is expected to meet with U.S. government officials, including Secretary of Commerce Howard Lutnick, to hold preliminary consultations on strategic Korea-U.S. investment cooperation.