Seoul: Seoul's planned US$200 billion investment in the United States is set to primarily benefit South Korean companies operating within the country, according to Industry Minister Kim Jung-kwan. Speaking on Monday during a meeting with CEOs of medium-sized enterprises, Kim outlined the investment strategy tied to the tariff deal recently brokered between South Korea and the United States.
According to Yonhap News Agency, Minister Kim emphasized that the $200 billion cash investment is not merely a financial contribution to the U.S. economy. Instead, it is strategically structured to prioritize South Korean companies entering the U.S. market. This initiative will be overseen by a joint investment committee chaired by U.S. Commerce Secretary Howard Lutnick, alongside a cooperation committee led by Kim himself.
Kim elaborated that the investments will target projects agreed upon by both nations and will be based on commercial viability, ensuring funds are directed toward businesses capable of generating significant cash flow. This investment is part of a broader $350 billion pledge made by Seoul in exchange for reduced U.S. tariffs, which was finalized last week. The agreement allocates $200 billion for cash investments and $150 billion for bilateral shipbuilding cooperation, with an annual investment cap set at $20 billion.
Moreover, Kim disclosed that both countries are nearing the completion of a memorandum of understanding and a joint fact sheet related to the tariff agreement. He urged medium-sized South Korean companies to consider leveraging the new Korea-U.S. investment fund, which offers an alternative financing option for establishing businesses in the U.S.
In response to U.S. President Donald Trump's recent comments on being a "very tough" negotiator, Kim expressed pride, noting it was an "honor for my family" to be recognized as tough by "the toughest person in the world." Trump's remarks were made during his special address at the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Gyeongju last week.