Washington: A visiting South Korean business delegation described last week’s meeting with newly appointed U.S. Secretary of Commerce Howard Lutnick as “productive,” following reports of discussions involving US$1 billion investment proposals from each company in exchange for “fast-track” regulatory benefits.
According to Yonhap News Agency, the delegation, which consisted of 20 South Korean CEOs led by SK Group Chairman Chey Tae-won, who also serves as the head of the Korea Chamber of Commerce and Industry, met with Lutnick in Washington during a visit aimed at fostering dialogue with the second Donald Trump administration. Reports indicated that Lutnick had requested investment commitments from South Korean firms during the 30-minute meeting, aligning with Trump’s strategy to encourage investments from allied trading partners through a fast-track process designed to expedite project approvals.
One delegation participant, speaking on condition of anonymity, noted that Secretary Lutnick did not explicitly demand investments exceeding $1 billion. Instead, he conveyed that companies investing more than $1 billion could receive various forms of support from the U.S. government. Another participant, also requesting anonymity, stated that Lutnick provided a clear and structured explanation of the latest U.S. trade policies, describing the session as productive in enhancing their understanding of U.S. trade policy.
Market observers highlighted that this meeting could introduce additional complexity to South Korean companies’ investment strategies as they navigate potential tariff hikes and a reassessment of semiconductor subsidies under Trump’s second term. Amid increasing uncertainties surrounding global trade policies, companies are expected to evaluate various scenarios before finalizing their investment decisions.
South Korean firms, including SK Group, have indicated potential increases in their U.S. investments, given the heightened trade tensions and protectionist measures under Trump that could challenge their operations. Chey previously mentioned that SK Group could consider additional U.S. investments, provided there are sufficient incentives from the new administration.
The meeting was arranged at the last minute due to the secretary’s confirmation process, which included a Senate approval vote and inauguration proceedings. It occurred just three hours before Lutnick’s swearing-in ceremony.