Trade minister says first US investment project to focus on energy, announcement due in August or September

South Korea's trade minister, currently visiting the United States, said the first investment project under the two countries' trade agreement — part of a $200 billion commitment — is being discussed with a focus on the energy sector, with an announcement expected as early as late August.

Kim Jung-kwan, minister of trade, industry and energy, made the remarks to reporters upon arriving at Dulles International Airport near Washington on Wednesday (local time). "From our perspective, projects that can generate stable cash flow are naturally more attractive," he said. "We believe energy-related projects have an advantage in that regard, so we are discussing those types of projects with the US side."

Kim said talks are in their final stages. "If we can wrap up deals on the key issues, I think we could make an announcement on a late-August or September schedule," he said.

Kim Yong-beom, chief of the Cheong Wa Dae policy office, had earlier projected that the first investment project would take shape around August or September.

"We are in very close discussions with the United States on the current projects, and I plan to continue those discussions during this visit," Kim Jung-kwan said. "There are overarching criteria such as commercial viability, so it is not something we can do unconditionally — but we must do our best to create a win-win situation between South Korea and the United States."

Kim is in Washington through Saturday to discuss investment plans and trade issues, and is scheduled to meet with senior administration and congressional officials, including Commerce Secretary Howard Lutnick. He will also attend the opening ceremony of the Korea-US Shipbuilding Cooperation Center on Thursday.

During his visit, Kim plans to convey South Korea's position on potential Section 301 tariffs under the Trade Act, which could be announced in conjunction with the expiration of the so-called global tariffs under Section 122.

"It happens that Friday is when the global tariffs expire, so we plan to discuss that as well," he said. The 10 percent global tariffs were imposed across the board immediately after the Supreme Court ruled in February that the reciprocal tariffs were unlawful, and they expire Friday — 150 days later.

The Donald Trump administration has been using Section 301 of the Trade Act to investigate South Korea and other countries on grounds of "overproduction" and "forced labor" as a replacement for the global tariffs. The forced-labor investigation has been completed, and South Korea has been notified of a pending 12.5 percent tariff.

Kim has maintained that the 15 percent tariff ceiling agreed upon in the Korea-US trade deal must be upheld. Yeo Han-koo, South Korea's chief trade negotiator, who is also in Washington on a separate schedule, is expected to meet with US Trade Representative Jamieson Greer, who oversees the Section 301 investigations.

On the Coupang Inc controversy becoming a diplomatic and trade issue between the two countries, Kim said there appear to be "misunderstandings and gaps" on both sides. "When I explain the Coupang situation, many people respond, 'Oh, was that the issue? I didn't know,'" he said.

"It is our job — people like me — to clear up those misunderstandings and narrow those gaps," he added. "All relevant ministries are working to bring the US side to a level of understanding."