Trade, Industry and Energy Minister Kim Jung-kwan said South Korea is aiming to conclude follow-up negotiations with the United States on its investment package within this week, though several issues remain unresolved and no final agreement has been reached.
Speaking to reporters at Incheon International Airport on the 13th after returning from a trip to the United States, Kim said, "It is difficult to say anything right now because a final decision has not been made," adding, "I intend to make an attempt within this week, and if a final deal is struck, we are thinking of announcing it within that time as well."
During the trip, Kim held last-minute talks with U.S. Commerce Secretary Howard Lutnick and others over the targets, scale and structure of the investment projects, according to sources. Upon his arrival in the United States, Kim had said he came "to wrap up the U.S. investment negotiations," indicating that talks would continue until the final signing. He also appears to have attended a memorial event honoring victims of the Sept. 11 attacks, including Lutnick's brother.
Kim declined to elaborate on specific investment projects. Asked whether details had been settled on a combined-cycle gas power plant in Texas — cited as the first project under the investment package — and a follow-up nuclear plant construction project, Kim said, "It is difficult to go into specifics at this point." He took the same position on the Alaska liquefied natural gas project.
As candidate projects have been floated one after another in recent weeks, concerns have emerged that actual investment could exceed the $200 billion strategic investment cap agreed between Seoul and Washington. Up to eight large nuclear reactors in the United States, the Texas gas plant and the Alaska LNG project are among the projects under consideration.
Kim stressed that the cap would be observed. "Our investment cap of $200 billion and $20 billion a year was set when we originally reached agreement with the United States," he said. "I do not think there will be any case of exceeding that cap."
He also reaffirmed that while substantial progress has been made with the U.S. side, negotiations would continue until a final agreement. Asked whether a deal had still not been reached despite his trip for final coordination, Kim said, "It is true that we have made significant progress on many issues," but added, "In a negotiation, nothing is over until the last signature."
