President Lee to Meet Trump... Details of U.S. Investment Fund to Be Announced

Kim Yongbeom, Policy Chief, Briefs on the 31st
"(Korea-U.S. Summit) Will Take Place Within Two Weeks"
Investment Fund for the U.S. to Be Announced at Summit
"A Mutually Beneficial Package Expected"

President Lee Jae Myung is heading to his seat after saluting the national flag at the 3rd Emergency Economic Inspection Task Force (TF) meeting held on the 30th at the Yongsan Presidential Office Building in Seoul. Photo by Yonhap News

President Lee Jaemyung and U.S. President Donald Trump will hold a summit within the next two weeks. This Korea-U.S. summit comes about two months after President Lee took office. During the meeting, the two leaders plan to specify and announce the details and structure of the $350 billion investment fund for the United States, which is at the core of the bilateral tariff negotiations.

Kim Yongbeom, Policy Chief at the Presidential Office, held a briefing at the Yongsan Presidential Office on the 31st and said, "The specific date for the Korea-U.S. summit will soon be coordinated through the diplomatic channels of both countries," adding, "President Trump told Secretary of State Marco Rubio to set a date as early as next week." He further explained, "They will meet within two weeks."

Earlier that day, President Trump met with the Korean trade negotiation delegation at the White House and announced the Korea-U.S. trade agreement via the social network service Truth Social, stating, "The specific amount will be announced when President Lee Jaemyung visits the White House for the summit within two weeks."

President Lee had planned to meet President Trump during the G7 Summit held in Canada from June 15 to 17. However, the meeting was canceled as President Trump returned early due to the situation in the Middle East. There were also expectations that the two leaders might meet at the NATO summit in The Hague, Netherlands at the end of last month, but that did not materialize.

"A Mutually Beneficial Package Expected at the Summit"

Kim Yongbeom, Director of Policy Office at the Presidential Office, is answering reporters' questions after a briefing on the conclusion of the Korea-US tariff negotiations at the Presidential Office building in Yongsan, Seoul, on the 31st. Photo by Yonhap News

At the summit, the details and structure of the investment fund for the United States are expected to be specified. In order to reduce the reciprocal tariffs imposed by the U.S., Korea has proposed a fund totaling $350 billion. Of this, $150 billion is a specialized fund for the shipbuilding industry. The remaining $200 billion will be allocated to a general fund covering industries where Korean companies have a competitive edge, such as semiconductors, nuclear power, secondary batteries, and bio industries. The specific investment amounts and methods by sector have not been disclosed.

Policy Chief Kim stated, "We have already presented our investment proposal," and added, "As I understand it, the areas of investment will be further discussed at the summit." He emphasized, "Since we have already suggested a certain range, I believe that the leaders will be able to reach a mutually beneficial investment package without difficulty once the summit is held."

The investment scale will be set after a comprehensive review, including investments made during former U.S. President Joe Biden's administration. Korean companies have increased their investments in the U.S. in line with the 'Invest in America' policy launched by the Biden administration in January 2021.

Yoon Sunghyuk, Industrial Secretary at the Presidential Office, was asked how the investment amounts under the Biden administration would be reflected. He replied, "I cannot disclose the figures," but added, "The investment plans of our companies in the U.S. will be included in the investment amount discussed at the summit."

The investment structure is likely to be centered on financial guarantees. Policy Chief Kim said, "Of the $250 billion in the general fund, there will be some direct investment, but the proportion will not be high," and added, "Most of the fund will consist of loans and guarantees. My sense is that guarantees will make up the largest portion."