Why is South Korea's US investment announcement delayed? Trade ministry cites US internal procedures

Five days have passed since the South Korean government completed its first National Assembly briefing on plans to pursue US investment projects, yet neither Seoul nor Washington has made an official announcement — drawing attention to the reasons for the delay.

The prolonged wait stands in contrast to earlier expectations that the two countries would swiftly announce the details of their agreement, given that the United States had been pressing for rapid investment implementation.

A Ministry of Trade, Industry and Energy official said Sunday that "it appears to be taking time for the United States to complete its internal procedures," adding that "the process of President Donald Trump selecting investment destinations based on recommendations from the US secretary of commerce and others has yet to be completed."

Under the memorandum of understanding on strategic investment signed by South Korea and the United States last November, as well as South Korea's domestic special act on Korea-US strategic investment, the selection of investment destinations is to be made by the US president following consultations between the two countries.

The US president selects investment sectors based on recommendations from an investment committee chaired by the US secretary of commerce. That committee is required to consult in advance with a Korea-US consultative committee — chaired by South Korea's trade minister — and may recommend only commercially viable investments.

South Korea completed its National Assembly briefing Tuesday.

According to political circles, Trade Minister Kim Jung-kwan and other government officials told the National Assembly that the construction of the Encinal gas combined-cycle power plant, valued at $22.3 billion, had been selected as the first project under the $200 billion US investment initiative.

The construction of eight large nuclear power plants in the United States and the Alaska LNG development project were reported to the Assembly as items requiring further consultations.

While the official announcement has since been delayed, the ministry said no new variables or sticking points have emerged during the final consultation process.

A ministry official said that "at the working level, we understand that the procedures on both sides have been wrapped up."

Some observers have suggested the announcement may have been pushed back by a string of recent engagements, including the UN General Assembly and a US-China summit.

The government is expected to transfer the first tranche of investment — worth $2.2 billion — as early as the end of this month, following the official announcement of the US investment projects.