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Korea
eyes energy for 1st project under $350 bil. US investment plan: finance
minister
Gov't to double FX borrowing,
cash pooling limits for foreign banks
By Jun Ji-hye, The Korea
Times - The energy sector is being considered for Korea's first project under
its $350 billion investment commitment to the United States, Finance Minister
Koo Yun-cheol said Wednesday.
Speaking at a luncheon hosted
by the American Chamber of Commerce in Korea (AMCHAM), Koo said the launch of
the Korea-U.S. Strategic Investment Corp. (KUIC) in June provided the
institutional framework needed to put the investment plan into action. He called
for companies from the two countries to work together to identify commercially
viable projects that would benefit both sides.
“Energy appears to be one of
the areas attracting significant interest,” Koo said, noting that securing
sufficient and affordable energy would be critical as power demand grows with
the expansion of artificial intelligence (AI).
“Combining Korea’s
engineering expertise with U.S. knowhow could create mutually beneficial
opportunities,” Koo added.
Regarding complaints from the
U.S. Department of Commerce over the delayed selection of the first investment
project, Koo stressed that “there is absolutely no intention to deliberately
delay the process.”
He said the government would
work to identify a project that benefits both countries and move ahead with it
as soon as possible.
Under an agreement reached at
a Korea-U.S. summit held last October in Gyeongju on the sidelines of the
Asia-Pacific Economic Cooperation summit, Seoul pledged $350 billion in
investment in Washington, while the U.S. agreed to cut tariffs on Korean imports
to 15 percent from 25 percent. While $150 billion of the commitment has been
allocated to shipbuilding, the remaining $200 billion has yet to be assigned to
specific projects.
The latest luncheon served as
a follow-up to AMCHAM’s Special Report: Korea’s Financial Hub Agenda, which
outlined measures to develop Korea as a global financial hub and was submitted
to the Korean government in April.
During the event, Koo also
outlined efforts to bring Korea’s capital and foreign exchange markets closer
to global standards, including corporate governance reforms and measures to
promote the international use of the won.
In particular, Koo said the
government will raise the reporting threshold for foreign currency borrowing by
foreign bank branches and the limit for cash-pooling arrangements from $50
million to at least $100 million, reflecting recommendations in AMCHAM’s
special report.
The move is aimed at easing
regulations governing foreign banks’ funding and liquidity management in Korea
and improving their access to the domestic financial market.
AMCHAM Chairman and CEO James
Kim, for his part, said Korea is emerging as a key player in the global AI
transformation.
“The growing global
prominence of companies such as Samsung Electronics and SK hynix reflects
Korea’s remarkable economic transformation and underscores the opportunity for
Korea to establish itself as a leading hub for investment, innovation, finance
and business,” Kim said.
He added that the next phase
of the U.S.-Korea economic partnership should focus on concrete investment in
strategic industries, expanded technology cooperation and closer regulatory
coordination, particularly in the digital sector.
