Domestic procedures complete, with no new bilateral disagreement as US announcement remains pending
The first project under South Korea’s $200 billion US investment program is awaiting Washington’s final approval, despite Seoul completing its domestic procedures, the industry ministry said Monday.
Seoul briefed parliament on Sept. 22 on three projects discussed with US officials, paving the way for an expected US announcement. Washington has yet to make one.
“Our procedures are all complete, and it is now in the hands of the US,” a ministry official said, adding that no new disagreement had emerged between the two sides.
“It is difficult to say when the US side will be ready for a final announcement,” the official said.
According to lawmakers briefed by the government, the first project is a $22.3 billion gas-fired combined-cycle power plant in Encinal, Texas. Seoul also outlined proposals to build eight large nuclear reactors in the US and participate in an Alaska liquefied natural gas project. Both projects require further talks.
Under the bilateral strategic investment memorandum of understanding, a US investment committee chaired by the commerce secretary assesses projects’ commercial viability and consults Seoul. Those consultations take place either directly or through a bilateral body led on the Korean side by Industry Minister Kim Jung-kwan.
Agreed projects are then recommended to the US president for final selection. South Korea cannot disburse funds until at least 45 business days after receiving formal notice of the president’s decision.
Industry officials suggested the delay could reflect President Donald Trump’s crowded diplomatic schedule or an effort to maximize publicity for the announcement, rather than negotiating difficulties.
But the wait has also fueled speculation that Washington is conducting further reviews, after repeatedly pressing Seoul to accelerate its investment commitments.
Trump has threatened higher tariffs over investment delays and criticized Seoul over the Iran war and its treatment of US companies, raising concerns that he could seek additional concessions or link project approval to other bilateral issues.
The memorandum, however, requires projects to undergo committee review and consultations with Seoul before reaching the president. It does not allow him to unilaterally select a project outside that process, during which South Korea can raise strategic and legal concerns.
herim@heraldcorp.com