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South Korea Forms Expert Team to Review US Investments Under Trade Deal

South Korea is forming a team of specialists to support a newly launched government committee tasked with the preliminary review of potential investment projects in the United States. This committee, led by the Industry Minister, will act as a single point of contact for assessing the commercial value of projects under a bilateral trade deal. The move follows U.S. pressure, including tariff threats, citing delays in Seoul's legislative process to implement the agreement. The deal involves a Korean commitment of $350 billion in U.S. investment in exchange for tariff concessions.

Key Points: S. Korea Forms Team for US Investment Project Review

  • Team to support new implementation committee
  • Reviews commercial rationality of US projects
  • Follows US tariff threat delay concerns
  • Part of $350 billion investment-for-tariffs deal
  • National Assembly seeks special bill
2 min read

S. Korea to form working-level team for preliminary review of US investment projects

South Korea establishes a working-level team to preliminarily review potential US investment projects under a new bilateral trade agreement.

"single window overseeing investment consultations - Industry Ministry"

Seoul, Feb 15

South Korea is preparing to form a team of working-level specialists to back a newly launched government committee tasked with the preliminary review of potential investment projects in the United States as part of a trade deal between the two countries, trade authorities said on Sunday.

The move comes shortly after the Korea-U.S. strategic investment memorandum of understanding (MOU) implementation committee held its inaugural meeting Friday to explore potential projects, as the National Assembly also seeks to legislate a special bill to support possible investments, according to the authorities, reports Yonhap news agency.

Led by Industry Minister Kim Jung-kwan and comprising vice ministerial officials from relevant ministries and chiefs of state-run financial institutions, the committee will serve as the "single window" overseeing investment consultations with the U.S. and assessing the commercial rationality and economic value of potential projects, according to the ministry.

The government reportedly plans to dispatch officials from relevant ministries, as well as include financial, legal and market experts on U.S. investments to support the committee.

The launch of the MOU implementation committee came after U.S. President Donald Trump threatened to raise "reciprocal" tariffs and auto duties on Korea back to 25 percent last month, citing a delay in Seoul's legislative process to implement the bilateral trade deal finalised late last year.

The MOU on strategic investment between the two countries was made as part of the deal, with Korea committing a US$350 billion investment in the U.S. in exchange for tariff cuts.

Earlier this month, the National Assembly also formed a special committee to expedite the legislation of the special bill on investment to the U.S.

Meanwhile, South Korea launched a government committee on Friday to begin a preliminary review of potential investment projects in the United States as part of a trade deal between the two countries, the industry ministry said.

The committee held its inaugural meeting to explore potential projects, as the National Assembly also seeks to legislate a special bill to support possible investments, according to the Ministry of Trade, Industry and Resources.

The committee will serve as the "single window" overseeing investment consultations with the U.S. and assessing the commercial rationality and economic value of potential projects, the ministry explained.

- IANS

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Reader Comments

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Priya S
$350 billion is a massive commitment! 🤯 While it's good for US jobs, I hope South Korea is getting solid benefits in return with those tariff cuts. Trade deals need to be truly reciprocal. India can learn from this—our trade negotiations must protect our domestic industries first.
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Vikram M
The threat of tariffs seems to have spurred quick action. It's a classic case of economic diplomacy under pressure. This "single window" committee idea is smart—reduces red tape. Maybe India's 'Make in India' initiatives could use similar streamlined committees for big FDI projects.
S
Sarah B
As someone working in international trade, this is a very practical step. Including financial, legal, and market experts is crucial to assess project viability. Hope they conduct thorough due diligence and not just rush due to political pressure. A balanced approach is needed.
R
Rohit P
Good strategy by South Korea to secure their trade interests. In the long run, such investments can strengthen bilateral ties. India should also focus on creating more strategic partnerships that include investment components, not just trade in goods.
K
Karthik V
While forming committees is fine, the real test is execution. Hope they select the right projects that give good returns. Sometimes these big MOUs look good on paper but the ground reality is different. Let's see how this plays out. đź‘Ť

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