South Korea's Industry Minister heads to US to finalize major investment project

  • Kim Jung-kwan returned to the United States to advance negotiations on the first investment project.
  • The proposed Texas project cost rose to about $25 billion from around $20 billion.
  • South Korea and the United States agreed to announce the first project in September.

South Korea's Industry Minister Kim Jung-kwan began a four-day U.S. visit on September 1, his second trip in two weeks, as Seoul and Washington work to finalize the first project under a $350 billion investment commitment agreed in last year's trade deal. The United States is cutting tariffs on Korean goods to 15% under the agreement. A liquefied natural gas combined-cycle power plant in Texas is under strong consideration, but negotiations were delayed after the U.S. side requested that the estimated project cost rise to about $25 billion from around $20 billion. The rate of return needed to establish the project's commercial viability also remains under discussion. Kim is scheduled to meet U.S. Commerce Secretary Howard Lutnick, attend the G20 Innovation Ministers' Meeting in Chapel Hill, hold a Washington investment ceremony and KOTRA roundtable, and join the groundbreaking of Hyundai-POSCO Louisiana Steel in Louisiana.

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