[Edaily Reporter Kim Sang-yoon ] Controversy is mounting over allegations of a rushed push for the project, as it has been reported that the government plans to announce its plan to proceed with investment projects in the U.S. on the 18th and then transfer the first tranche of investment funds—totaling $2.2 billion (approximately 2.96 trillion won) plus alpha (α)—to the U.S. by the end of this month. The Korea-U.S. Strategic Investment Memorandum of Understanding (MOU) stipulates that investment funds must be disbursed no sooner than 45 business days after South Korea is notified by the U.S. President of the project selection. Given that the preliminary report to the National Assembly is scheduled for the 17th, questions are being raised as to whether the plan to disburse funds amounting to 3 trillion won in just over ten days is in line with the Korea-U.S. agreement and domestic procedures.

According to a report by the Hankyoreh on the 8th, the government plans to announce its plan to proceed with the U.S. investment project on the 18th and then transfer the first tranche of investment funds—totaling $2.2 billion (approximately 2.96 trillion won) plus alpha (α)—to the U.S. on the 29th or 30th. It is reported that the funds will primarily come from investment returns on foreign currency assets held by the Bank of Korea and the Foreign Exchange Stabilization Fund, with any shortfall to be covered by issuing foreign currency bonds. The Encinal Gas Combined Cycle Power Plant project in Texas, with a total project cost of $22.3 billion, is strongly considered as the first investment project in the U.S.
The issue lies in the procedures that must be followed between the announcement of the project plan and the actual disbursement of investment funds. Based on a comprehensive review of the Special Act on Investment in the U.S. and the Korea-U.S. MOU, individual investment projects must pass through multiple stages of review and approval both domestically and internationally.
First, the Korea-U.S. Strategic Investment Project Management Committee—chaired by the Minister of Trade, Industry and Energy—reviews the commercial viability of candidate projects, as well as strategic and legal considerations, the participation of domestic companies, and the conditions for U.S. government support. Next, the Steering Committee under the Korea-U.S. Strategic Investment Corporation deliberates and decides on whether to proceed with the project, then submits a preliminary report to the National Assembly’s Finance, Economy, and Planning Committee and the Committee on Trade, Industry, Energy, SMEs, and Startups.
Following the report to the National Assembly, the Korea-U.S. Consultative Committee, led by the Minister of Trade, Industry and Energy, consults with the U.S. side on whether to proceed with the project. Based on the results, the U.S. Investment Committee—chaired by U.S. Secretary of Commerce Howard Rutnick—recommends the project, and U.S. President Donald Trump makes the final selection. Subsequently, once the U.S. side notifies the South Korean government of the selection, the domestic Steering Committee conducts the final review and approval of the investment disbursement.

◇Announced the day after the National Assembly report… Remittance ten days later?
It was reported that the draft operating agreement for the Investment Special Purpose Vehicle (I-SPV), which will manage the Encinal Project and all investments in the U.S., was discussed at the Steering Committee meeting on the 7th. However, it remains unclear whether the resolution passed at that time constituted a decision to “proceed with the project”—necessary to begin official consultations with the U.S. side—or a resolution to disburse investment funds following the U.S. President’s selection of the project.
The preliminary reporting to the National Assembly has not yet been completed. The Finance and Economy Committee and the Science and Technology Committee are scheduled to hold plenary sessions on the 17th to receive a confidential briefing from the government regarding investments in the U.S. The party-government consultation held on the 7th was a preliminary briefing for ruling party lawmakers and is therefore a separate procedure from the reporting to the relevant standing committees of the National Assembly as stipulated by the special law.
According to the general procedure stipulated by the Special Act, the National Assembly’s preliminary briefing is followed by consultations with the Korea-U.S. Consultative Committee, a recommendation from the U.S. Investment Committee, and the U.S. President’s selection of the project. After the South Korean government is notified of the project selection, the Investment Fund must also be approved by the Steering Committee. If the timeline—a National Assembly briefing on the 17th, an announcement of the implementation plan on the 18th, and the transfer of investment funds on the 29th and 30th—is accurate, it is necessary to verify when these procedures took place.
◇ Both English and Korean Versions of the MOU State “No Less Than 45 Business Days Later”
Article 7 of the MOU specifically stipulates the timing of the investment payment. The original English text states that Korea must make the investment payment “on such date that is no less than forty-five Business Days after” the date Korea is notified of the U.S. President’s selection of the project.
“No less than 45 Business Days” literally means “at least 45 business days later.” The Korean version of the MOU released by the Ministry of Trade, Industry and Energy also specifies that the investment funds will be disbursed “on a date at least 45 business days after the date on which Korea was notified that the U.S. President had selected the investment.” The official explanatory materials released by the Ministry of Trade, Industry and Energy at the time the MOU was signed also state that “the funds will be paid on a date at least 45 business days after the date Korea receives notification from the U.S. that the investment has been selected.” Nevertheless, the government maintains that both South Korea and the U.S. interpret this as “within at least 45 days.”
For the first investment payment to be made on September 29–30, taking into account weekends and bank holidays in both South Korea and the U.S., the South Korean government would have had to be notified of the U.S. President’s project selection by late July at the latest. However, on July 28, in response to a Korea Economic Daily report stating that the Encinal Project had effectively been selected as the first investment project in the U.S., the Ministry of Trade, Industry and Energy issued a clarification stating, “While we are in close consultation with the U.S. side regarding investment projects in the U.S., the specific details and announcement timing for the first project have not yet been determined.”
Furthermore, as the preliminary report to the National Assembly is scheduled for the 17th, it remains unclear in what order the domestic procedures under the special law and the U.S. side’s project selection and notification took place. A source deeply involved in investments in the U.S. pointed out, “If the plan to transfer funds by the end of this month is true, the U.S. president’s project selection date, the timing of the South Korean government’s notification, the basis for calculating the $2.2 billion figure, and whether the 45-business-day requirement under the MOU has been met should be disclosed first,” adding, “As it stands, I suspect the government may be rushing the process under pressure from the U.S.”