Koo Yuncheol: "U.S. Investment Implementation Committee to Operate Temporarily Until Special Act Takes Effect"

Government Holds Foreign Economic Ministers' Meeting...
"To Establish a Preliminary Project Review Team Under the Implementation Committee"

Koo Yooncheol, Deputy Prime Minister for Economic Affairs and Minister of Finance and Economy, is delivering opening remarks at the Foreign Economic Ministers' Meeting he presided over at the Government Complex Seoul in Jongno-gu, Seoul on the 10th. Ministry of Finance and Economy

The government will temporarily operate a Strategic Investment MOU Implementation Committee, which will include Minister of Trade and Industry Kim Jeongkwan and vice ministers from relevant ministries, until the Enforcement Act on Strategic Investment in the United States comes into effect. As pressure from the United States to implement early investments has intensified while the special act that stipulates investment procedures has yet to pass the National Assembly, the government is putting in place an interim decision-making framework.

Koo Yooncheol, Deputy Prime Minister for Economic Affairs and Minister of Finance and Economy, announced this in his opening remarks at the Foreign Economic Ministers' Meeting held at the Government Complex Seoul on the morning of the 10th, stating, "We will activate an interim implementation framework to carry out the Strategic Investment MOU that the governments of Korea and the United States signed last November."

Deputy Prime Minister Koo said, "Until the special act is implemented, the Foreign Economic Ministers' Meeting will serve as an interim control tower in place of the board of the Korea-U.S. Strategic Investment Corporation, and we will temporarily operate a Strategic Investment MOU Implementation Committee with the participation of the Minister of Trade and Industry and vice ministers from relevant ministries."

He went on to say, "In order to conduct a detailed review of the commercial viability of candidate projects identified by both the U.S. side and our side, we will establish and operate a Preliminary Project Review Team composed of experts under the Strategic Investment MOU Implementation Committee."

This is aimed at building an interim decision-making framework that will allow for prior preliminary reviews of candidate projects for investment in the United States, to the extent administratively possible, before the legislation and enforcement of the special act.

As the Trump administration has begun to exert pressure to reimpose tariffs, the National Assembly held a plenary session the previous day and passed a proposal to form a special committee to deliberate a special bill (the Enforcement Act on Strategic Investment in the United States) for managing Korea-U.S. strategic investment. Although the bill is expected to be handled through bipartisan agreement before March 9, the deadline for the special committee's activities, even if the special act passes, it is expected to take an additional three months until enforcement, after preparations such as establishing subordinate regulations.

Deputy Prime Minister Koo stressed, "From the perspective of national interest, it is not desirable for unnecessary misunderstandings to arise between Korea and the United States or for trust to be damaged in the process of implementing the MOU agreement," and explained, "Since this is a preliminary review carried out to the extent administratively possible before legislation, final investment decisions and investment execution will be pursued only after the special act is passed and enforced, taking into comprehensive consideration the commercial viability of the projects, as well as financial conditions including the foreign exchange market."

At the meeting, key promotion strategies of the Export-Import Bank of Korea to revitalize productive finance were also discussed. Deputy Prime Minister Koo said, "This year, through the revitalization of productive finance, we will help overcome low growth and resolve K-bipolarization," and added, "By utilizing various instruments such as loan guarantees, investments in the artificial intelligence (AI) industry, and AI transformation (AX) consulting, we will provide 22 trillion won in support over the next five years."

He also emphasized, "We will provide 50 trillion won over the next five years to semiconductors, bio, and batteries, and we will continue to support exports and orders by providing 100 trillion won over the next five years to mega-scale strategic order sectors such as nuclear power, defense industry, and infrastructure."

Finally, he added, "To overcome trade-related crises, we will provide 150 trillion won over the next five years through sector-specific specialized financing, and for balanced regional growth, we will concentrate at least 35% of total credit exposure on companies located in the regions."