South Korean Investment Deal Delayed as Officials Clarify Procedural Steps

South Korean Foreign Minister Cho Hyun stated on Thursday that an official announcement regarding Seoul's investment plans in the United States, which are tied to an ongoing bilateral trade agreement, has experienced delays while procedural details are sorted out. Cho did not elaborate further on the specifics of these procedures during his remarks.

Cho delivered these comments at the airport prior to his departure for the United States, where a scheduled meeting with U.S. Secretary of State Marco Rubio is slated for Friday. The diplomatic engagement comes as both nations continue navigating the implementation phase of a trade pact initially struck last year.

According to an official familiar with the situation and local media reports, the South Korean government postponed a planned briefing regarding its investment strategy that had been scheduled for a parliamentary committee this week. The session has been tentatively rescheduled to take place on September 22. Lawmakers have characterized this parliamentary briefing as a critical final step prior to Seoul and Washington officially locking in the terms for a substantial investment pledge in the United States.

Two officials in Seoul noted that because ongoing negotiations over the trade agreement details are still underway, exact dates for the parliamentary briefing and the final formal announcement remain unfinalized. However, South Korean news outlet Newsis reported on Wednesday, citing a parliamentary official, that the two allies might hold a memorandum of understanding signing ceremony on September 23.

The broader trade framework involves South Korea committing to a $350 billion manufacturing investment pledge in the United States. In exchange, Washington agreed to lower tariffs on Korean imports to 15%. Implementation of the agreement has previously faced setbacks, which earlier this year led U.S. President Donald Trump to issue threats of higher tariffs against South Korea.

Out of the total $350 billion investment package, $150 billion has been explicitly earmarked for the shipbuilding sector. Both governments are currently working to finalize project terms for the remaining $200 billion. Several South Korean media outlets, including the Korea Economic Daily and Chosun Ilbo, reported that proposals under discussion include Seoul potentially acquiring a minority stake in Westinghouse, the U.S. nuclear reactor technology firm.

According to those reports, the potential Westinghouse stake would be funded through South Korea's broader U.S. strategic investment fund. The envisioned package could involve up to eight new nuclear reactors constructed in the United States, split between six utilizing Westinghouse technology and two based on a South Korean model. Additional projects reportedly under consideration include a $22 billion, 6.3-gigawatt gas power plant in Encinal, Texas, intended to supply rising energy demand for artificial intelligence data centers, alongside possible participation in an Alaskan liquefied natural gas project.