South Korea-US Trade Deal: First Investment Project in Energy Sector Nears Announcement

By Song Sang-ho and Hong Jung-kyu

WASHINGTON, July 22 (Yonhap) -- South Korea's first project for investment in the United States under a bilateral trade deal is expected to be announced as early as late next month, with the two countries' relevant discussions centering on the energy sector, Seoul's industry minister said Wednesday.

Industry Minister Kim Jung-kwan made the remarks in a meeting with Korean reporters after arriving at an airport near Washington for a four-day visit during which he plans to meet Commerce Secretary Howard Lutnick and other officials to discuss investment, trade and other issues.

South Korea and the U.S. have been in talks to decide investment projects as part of last year's trade deal under which Seoul has committed to investing $350 billion in the U.S. with an annual cap of $20 billion.

"From our standpoint, projects with stable cash flows are more desirable projects. That said, we believe energy-related projects are more advantageous in that respect (for South Korea). So our discussions with the U.S. are proceeding with a focus on such energy projects," he said.

"Currently, (the talks) are almost in the last phase. If we conclude agreements on important issues, I expect we will be able to make (announcements on investment projects) perhaps in late August or September," he added.

Earlier, Kim Yong-bum, presidential chief of staff for policy, said that Seoul's first investment project could be unveiled between August and September.

The minister said that Seoul and Washington have been "very closely" discussing investment projects, stressing that the two sides are pursuing a "win-win" outcome.

"I also plan to have those discussions (during my stay in the U.S.) this time," he said, reiterating that "commercial rationality" is a key standard for investment cooperation with the U.S.

"We would do our best to create a win-win situation for South Korea and the U.S."

His schedule in Washington also includes attending a ceremony opening the Korea-U.S. Shipbuilding Partnership Center in the U.S. capital on Thursday.