"South Korea's $350 billion investment fund to be owned and controlled by the U.S." Specified… Debate over stronger binding force than Japan's case

Lutnick: "90% of profits will go to the U.S."

Presidential Office: "It likely refers to reinvestment"

Interpretations differ regarding the U.S. statement on South Korea's proposed $350 billion investment plan in America. Unlike Japan, the agreement this time specifically includes language that the U.S. will directly ‘own and control’ the investment authority, raising concerns that controversy may arise during the investment implementation process.

On the 30th (local time), U.S. President Donald Trump stated on his social media, "The $350 billion proposed by South Korea is an ‘investment owned and controlled by the United States’." Experts assess that President Trump used much more specific and binding language compared to the phrase, "invested at my direction", which he wrote on social media right after the trade negotiation with Japan.

Choi Byung-il, President of the Pacific Trade Strategy Innovation Hub, said, "It appears that the U.S. used stronger language with South Korea than with Japan," adding, "If the structure is simply that Korea provides capital but the U.S. holds all decision-making rights, the actual investment benefits may not be significant." He further commented, "Especially, the phrase ‘owned and controlled’ signifies dominant authority rather than just participation, which could pose a risk of disputes over operational methods going forward."

On the same day, U.S. Secretary of Commerce Howard Lutnick posted on social media, "90% of the profits from the $350 billion invested by South Korea will go to American citizens." On the 31st, Kim Yong-beom, Chief Policy Officer of the Presidential Office, explained in a briefing, "The original U.S. text states that 90% will be ‘retained’ from the investment, which we interpret as a concept of reinvestment." However, he added, "Although we tried to verify the exact meaning, the U.S. response was ambiguous and the wording tended to vary depending on the situation."

Kim also said, "A more thorough analysis of the Japanese fund has led to the inclusion of more safety measures," and "At this stage, since the fund structure and equity allocation method have not been decided, it is difficult to draw definite conclusions about the U.S. statements." He continued, "Ultimately, during the negotiation process of forming and operating the fund, we will examine individual projects," adding, "At that time, we will have opportunities to present opinions to ensure that our interests are not undermined during operation." One trade expert emphasized, "Rather than the headline figure of $350 billion, the real benefits will depend on how the investment is executed and who actually holds control," stressing, "Further review is needed by industry and the National Assembly."

Ji-eun Ha, Reporter hazzys@hankyung.com