SEOUL | Nov 4, 2025| Sky Link Times
South Korea’s planned $200 Billion U.S. Investment will first be directed toward South Korean companies already operating there, Industry Minister Kim Jung-kwan announced on Monday. The move follows last week’s finalized tariff deal between Seoul and Washington, under which Korea pledged $350 billion in total investments.
Funds to Prioritize Korean Businesses in U.S. Market
Speaking at a meeting with CEOs of mid-sized firms, Kim clarified that the $200 Billion U.S. Investment in cash will not simply be financial aid to the U.S. but will prioritize projects involving Korean enterprises.
“The $200 Billion U.S. Investment is not just money we are giving to the U.S. The benefits will be structured to give priority to our companies entering the U.S. market,” Kim said.
The projects will be reviewed and approved by a joint investment committee, co-chaired by U.S. Commerce Secretary Howard Lutnick and Minister Kim himself, according to reports from Yonhap News Agency.
Tariff Deal: $350 Billion in Total Commitments
Tariff Deal: $350 Billion in Total Commitments under the newly finalized Korea–U.S. tariff deal, Seoul agreed to invest a total of $350 billion — $200 billion in cash and $150 billion for bilateral shipbuilding cooperation — with a spending cap of $20 billion per year.
Kim emphasized that these investments will be made based on commercial viability, focusing on projects capable of generating sustainable cash flow.
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‘An Honor to Be Called Tough,’ Says Minister Kim
Reacting to U.S. President Donald Trump’s comments labeling him a “very tough negotiator,” Kim lightheartedly remarked,
“It’s an honor for my family to be called tough by the toughest person in the world.”
Trump had made the remarks during his keynote address at the APEC CEO Summit held in Gyeongju last week.
Concerns Over Domestic Industry Impact
Meanwhile, Vice Industry Minister Moon Shin-Hak acknowledged that Seoul is evaluating how this large-scale U.S. investment may impact domestic industrial growth.
Moon said the government will closely monitor whether Korean conglomerates can continue their “mother factory” strategy, where high-value production and R&D remain in Korea while other operations move abroad.
Additionally, Moon confirmed that an industrial restructuring plan for the petrochemical sector—aimed at addressing global oversupply—will be finalized by year-end.
Conclusion
Experts believe Seoul’s strategic investment approach aims to balance international cooperation with domestic industrial strength, ensuring that Korean firms remain competitive in both global and local markets while strengthening trade ties with Washington.
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