Seoul: U.S. Commerce Secretary Howard Lutnick has committed to addressing immigration challenges linked to South Korean investments in the United States, as reported by South Korea's industry minister.
According to Yonhap News Agency, Industry Minister Kim Jung-kwan shared Lutnick's intention to "fix" the situation during a recent press briefing. This followed Kim's return from Washington, where he engaged in discussions related to a trade framework agreement between Seoul and Washington established on July 30.
The backdrop to these talks includes a September immigration raid at a battery plant in Georgia, operated by a Hyundai Motor Co. and LG Energy Solution Ltd. joint venture, which resulted in the detainment of over 300 Korean nationals. Following their release, the individuals, except one who opted to remain in the U.S., returned to South Korea through "voluntary departure."
This incident has fueled apprehension about Seoul's planned US$350 billion investment in the U.S., a commitment made under the July 30 agreement. The deal also involved reciprocal tariff reductions, with the U.S. agreeing to lower tariffs on South Korean products.
Amid discussions on whether Seoul should support local firms and endure higher tariffs, Minister Kim emphasized the importance of continued negotiations with the U.S. and highlighted the evolving dynamics of the bilateral relationship. He described the ongoing negotiations as a "tough pingpong match" aimed at achieving a mutually beneficial outcome.
Differences persist between the two nations regarding the details of the planned investment, particularly concerning financing and profit-sharing strategies. Seoul favors loans and credit guarantees, while the U.S. seeks direct investment.
Domestically, Minister Kim underscored the need for advancing plans to construct new nuclear power facilities to meet future energy demands. These projects, confirmed under the 11th basic plan on electricity supply and demand, face potential reevaluation amidst changes in governmental responsibilities for energy policy.
Kim also addressed the ongoing investigation into a dispute settlement between Korea Hydro and Nuclear Power Co. (KHNP) and U.S. energy firm Westinghouse. The inquiry follows concerns that the settlement may limit KHNP's ability to bid on international projects due to alleged intellectual property infringements.
Additionally, Kim highlighted the strategic importance of fostering AI transformation within Korea's manufacturing sector. The government has outlined a road map for developing AI-powered technologies and infrastructure, including humanoid robots and autonomous vehicles, aiming to establish 500 AI factories by 2030.