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Post by : Badri Ariffin
A South Korean opposition lawmaker has called for parliamentary scrutiny of Seoul’s planned $350 billion investment package in the United States, warning that ongoing negotiations over energy projects could expose South Korea to a disproportionate share of the financial risks.
The investment commitment was agreed as part of a broader trade deal between South Korea and the United States that reduced US tariffs on South Korean goods to 15%. However, implementation of the agreement has been delayed, leading US President Donald Trump to threaten higher tariffs on South Korean goods earlier this year.
Kim Sung-won, chairman of the National Assembly’s trade committee and a lawmaker from the opposition People Power Party, said on Monday that he had met South Korea’s top trade envoy, Park Jung-sung, to discuss the progress of negotiations with Washington.
Kim said concerns had emerged over several proposed energy investments. He warned that South Korean-designed nuclear reactors could face restrictions on entering the US market and said the conditions surrounding a proposed power plant project were becoming less favourable.
He also raised concerns about how profits and losses could be divided, saying South Korea could potentially face losses while the United States receives a larger share of the profits.
“Things become more worrying the closer one looks,” Kim wrote in a Facebook post.
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Seoul and Washington are discussing several energy-related investments as part of the broader package.
Among the projects are a large gas-fired power plant in Texas and plans involving the construction of up to eight nuclear reactors in the United States. Recent reports have said negotiations have faced differences over nuclear reactor technology, financing arrangements and the distribution of profits and losses.
The proposed Texas project is among the first major investments being considered under the package, while the nuclear plans could involve both US and South Korean technology.
Kim also criticised the government’s approach to parliamentary oversight. He questioned plans to provide lawmakers with a briefing from the Industry Ministry instead of seeking formal parliamentary consent for the investment arrangements.
The government had postponed a parliamentary briefing last week, saying additional time was needed while negotiations with Washington continued. The briefing is now expected to take place on Tuesday, according to a Seoul official familiar with the matter and media reports.
The South Korean government has said it will proceed with strategic investments in the United States in accordance with South Korean law.
South Korean President Lee Jae Myung acknowledged that some parts of the negotiations would be difficult to accept.
Speaking to his aides on Monday before leaving for the United States to attend the UN General Assembly, Lee said the country faced several external challenges. He stressed the need for careful consideration and decision-making, with the lives and safety of South Koreans and the country’s national interests treated as key principles.
The negotiations between Seoul and Washington remain ongoing as both sides work to finalise the individual projects and their financial terms.
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