Seoul: The use of South Korea's special U.S. investment fund for Korea Zinc Co.'s plan to build a critical metals refinery in America's southern region is "a matter to be discussed" with Washington, Industry Minister Kim Jung-kwan said Wednesday. Kim made the remarks at a press briefing held shortly after the Ministry of Trade, Industry and Resources' policy briefing to President Lee Jae Myung, when asked if there are any concerns over the financial pressure on Korea Zinc from the company's investment plan in the U.S.

According to Yonhap News Agency, Korea Zinc and the U.S. government are exploring a joint investment of around 10 trillion won (US$6.8 billion) to construct a critical metals refinery in Clarksville, Tennessee. Minister Kim stated that while Korea Zinc has assessed the financial implications of the venture, discussions on utilizing Korea's special fund for U.S. investment have yet to take place.

Korea Zinc's initiative is expected to not only benefit the company but also enhance South Korea's supply chains for rare earths and critical minerals. The U.S. Department of Commerce has shown support for the project due to its potential investment in the U.S. Additionally, Seoul is planning to establish the Korea-U.S. strategic investment fund, part of its $200 billion investment commitment in exchange for reduced U.S. tariffs under a recently finalized tariff agreement.

Trade Minister Yeo Han-koo also mentioned plans for Korea and the U.S. to convene a joint free trade agreement (FTA) committee early next year. The committee aims to address non-tariff issues, including those concerning agriculture, online platforms, and intellectual properties.