According to Bloomberg on August 18th, the South Korean government denied reports in local media that the government was discussing using a semiconductor project as its first investment in the United States.
On the 18th, the South Korean Presidential Office stated in a statement that the reports suggesting that both countries are discussing semiconductors as a potential first strategic investment project were ‘untrue’. The Presidential Office refused to provide details regarding negotiations between South Korea and the United States regarding investment commitments.
Previously, the South Korean newspaper 'Chungang Daily' reported that the first project originally scheduled to be announced in late this month in Seoul is facing uncertainties, as Washington has unexpectedly sought investment from South Korea in American chip manufacturing facilities.
According to an anonymous official from the ruling party, this requirement from the US was a key issue at the closed-door trade meeting held by the Blue House on August 13.
The official revealed that the participating officials generally believed that investing in storage chip facilities in the United States was not practical, as Samsung Electronics and SK Hynix have pledged to invest at least $880 billion in the construction of chips and data centers.
Reports also stated that initially, South Korea planned to prioritize the energy sector as its first major investment in the United States.
Kim Jong-ung's official photo - Yonhap News Agency
South Korean Minister of Industry, Trade and Resources, Kim Jung-wang, arrived in Washington last Sunday to address the final details of the U.S. investment package.
According to Yonhap, Kim Jong-gwan said on the 17th that Seoul and Washington need to resolve the remaining issues related to the $200 billion investment plan reached in bilateral tariff negotiations.
Kim Jong-gwan said, "We previously stated that we would consider releasing relevant information around the end of August or early September. However, as negotiations enter their final stage, various practical issues have arisen at the working level." Currently, both parties are aiming to follow this schedule and negotiate the specific details.
Yonhap reported that currently, while several bilateral trade issues remain unresolved, South Korea is still facing continuous tariff pressures from the United States.
Last year, South Korea reached a trade agreement with the United States, agreeing to invest $350 billion in the US in exchange for a reduction of tariffs on South Korean imports from 25% to 15%. Of this $350 billion, $150 billion is designated for cooperation in the shipbuilding industry, while the details regarding how the remaining $200 billion in investment projects will be implemented are still under negotiation between the two countries.
On August 17 local time, U.S. President Donald Trump stated that he had asked the Department of Defense to significantly reduce the scale of joint military exercises between the United States and South Korea. On the same day, Trump also publicly criticized South Korea for not participating in the U.S. military operations against Iran.
Regarding this, three people familiar with the matter revealed to Politico on the 17th that Trump has repeatedly approached South Korea in recent days. Part of the reason is his dissatisfaction with the progress of the $350 billion investment commitment made by South Korea.
Trump administration officials believe that South Korea is delaying the fulfillment of this commitment. A person familiar with the negotiations between the United States and South Korea pointed out that the negotiations with South Korea are progressing slower than what Trump administration officials expected, and no agreement has yet been reached.
That person claims, "They (South Korea) have been the slowest negotiators I've ever encountered."
