South Korea forms body to manage US$350 billion US investment pledge

South Korea has formed the Korea-US Strategic Investment Corporation to manage a US$350 billion investment commitment in the United States, the center of a trade deal with Washington exchanged for lower tariffs. The state-backed body began operating after a special law tied to the investment took effect on Thursday, June 18. Seoul named former trade vice minister Park Jong-won as its first chief. Under the rules now in force, each project must pass a business viability test, including the ability to generate cash flow to repay principal and interest. The package consists of US$200 billion for advanced industries and other strategic sectors, plus US$150 billion for shipbuilding investment by South Korean companies. Proposals under discussion include LNG, energy infrastructure, advanced materials and battery supply chains, but talks with the United States are still under way and no project has been finalized.