Seoul: Seoul's planned US$200 billion investment in the United States will be directed first towards South Korean companies operating in the U.S., the industry minister announced on Monday. "The $200 billion cash investment is not just money we are giving to the U.S.," Industry Minister Kim Jung-kwan stated during a meeting with CEOs of medium-sized enterprises, highlighting Korea's investment commitment to the U.S. as part of a recently reached tariff agreement between the two nations. "The benefits will be structured to give priority to our companies entering the U.S. market."

According to Yonhap News Agency, Minister Kim further detailed that investments will be channeled into projects mutually agreed upon by both countries. This process will be overseen by a joint investment committee led by U.S. Commerce Secretary Howard Lutnick and a cooperation committee chaired by Kim himself. "The $200 billion investment will be made based on commercial rationality. Simply put, it will be directed to businesses capable of generating cash flow," he elaborated.

Earlier in the week, Seoul and Washington concluded an agreement confirming the specifics of Seoul's $350 billion investment promise, which was made to secure reduced U.S. tariffs. The agreement stipulates that the investment will comprise $200 billion in cash and $150 billion designated for bilateral shipbuilding projects, with an annual limit of $20 billion on the cash installments.

The presidential office announced on Friday that both countries are close to completing a memorandum of understanding and a joint fact sheet concerning the recently finalized tariff deal.