South Korea and U.S. Negotiate Terms for First Major Investment Project

SEOUL, Sept. 21 (Yonhap) -- South Korea and the United States still have to iron out a string of issues on terms of Seoul's investment project in the world's largest economy ahead of the South Korean government's parliamentary briefing, political sources said Monday.

Seoul and Washington have been in negotiations over the first investment project under South Korea's US$350 billion investment commitment to the U.S.

The government is expected to brief on negotiation results and other details for parliamentary committees on Tuesday.

South Korea has focused on "commercial rationality" in seeking its first mega investment project in the U.S., but Washington is said to have been pushing for a speedy conclusion.

Seoul and Washington adopted a joint fact sheet following last year's summit between President Lee Jae Myung and U.S. President Donald Trump. Under the agreement, South Korea pledged $350 billion in investment in the U.S., including $150 billion for shipbuilding cooperation, in exchange for lower U.S. tariff rates.

The two countries had initially been expected to announce the first project on Friday after the government briefed the National Assembly last Thursday, but the announcement was postponed as they continued to iron out differences.

The government is expected to provide relatively detailed plans on the scale and allocation of funding for potential energy projects, including a large-scale gas-fired power plant in Texas and nuclear power projects.

Sources said the two sides remain at odds over how to ensure "commercial viability," which South Korea is seeking to guarantee as part of its investment commitments.

The Seoul government is seeking safeguards that would allow it to adjust or halt investments if projects prove economically unviable or unexpected risks arise, while also calling for an annual cap on investment transfers.

The U.S., however, has reportedly shown reluctance toward Seoul's proposed safeguards and is pressing for some projects to move forward more quickly.

Foreign Minister Cho Hyun told reporters Friday (U.S. time) following his talks with U.S. Secretary of State Marco Rubio in Washington that they agreed to continue communicating closely to implement key agreements between the two leaders.

The U.S. State Department said Rubio stressed the need to swiftly implement the investment commitments.