Seoul: U.S. Commerce Secretary Howard Lutnick has assured that he will address immigration issues impacting South Korean investment in the United States, as mentioned by Seoul's Industry Minister Kim Jung-kwan following recent trade discussions.
According to Yonhap News Agency, Lutnick expressed regret over the recent immigration raid on South Koreans, using the word "fix" during the talks. Minister Kim relayed these sentiments at a press conference after returning from Washington, where he engaged in follow-up negotiations on a trade agreement established between Seoul and Washington on July 30. The minister highlighted Washington's apparent concern over the immigration raid incident, which he suggested should not have occurred in the first place.
The immigration issue arose after a raid by U.S. authorities at a battery plant in Georgia, operated by a joint venture between Hyundai Motor Co. and LG Energy Solution Ltd., in early September. This incident resulted in the detainment of over 300 Korean nationals, who, except for one individual choosing to remain, returned to Korea under "voluntary departure" terms last week.
This development has fueled apprehension regarding Seoul's commitment to invest a total of US$350 billion in the U.S., an investment plan outlined in the July 30 agreement. Seoul's investment pledge was made in exchange for the U.S. agreeing to lower reciprocal tariffs on South Korea and reduce tariffs on Korean cars. Despite some experts calling for a reevaluation of this investment plan, Minister Kim emphasized the importance of continued negotiations with the U.S., deeming Seoul's relationship with Washington crucial for the country's future.
The two nations are reported to have differing views on the investment's financing methods and profit-sharing arrangements, with Korea favoring loans and credit guarantees, while the U.S. insists on direct investment. Minister Kim reassured that the investment projects would also benefit Korean companies, countering concerns that the U.S. would solely benefit from the $350 billion investment.
Domestically, the industry minister underscored the necessity of constructing two new nuclear power plants and a small modular reactor to meet future energy demands. These projects, part of the 11th basic plan on electricity supply and demand, face potential delays due to calls for public review by the environment minister. However, Kim asserted the need for these projects to stabilize energy prices and supply.
In response to inquiries about the dispute settlement between Korea Hydro and Nuclear Power Co. (KHNP) and U.S. firm Westinghouse, Kim indicated that an investigation is underway to determine if the deal adhered to proper protocols. The investigation follows reports suggesting the deal might restrict KHNP from bidding on new power plant projects outside the Czech Republic.
Additionally, Minister Kim highlighted his focus on fostering Korea's AI transformation in manufacturing industries, emphasizing the significance of AI in shaping the future success of key industries. Last week, the government unveiled a road map for developing AI-driven humanoid robots and autonomous vehicles, alongside plans to establish 500 AI factories by 2030.