[E-Daily Reporter Kim Sang-yoon ] Although South Korea and the U.S. agreed last November that the deadline for remitting investment funds to the U.S. would be “within 45 business days” after the U.S. President’s notification of business selection, it has been definitively confirmed that the Memorandum of Understanding (MOU) states the exact opposite: “at least 45 business days after.” The government adopted this wording verbatim while adapting Japan’s MOU on investment in the U.S., but in line with the shared negotiating intent between South Korea and the U.S. and the U.S.’s strong demand for enforcement, it was actually decided to send the funds by the end of this month—within 45 business days. In effect, the “45-day safety net” was never actually guaranteed.

◇“Within 45 days” in words… “At least 45 days later” in writing
According to a government official on the 10th, during MOU negotiations last November, South Korea and the U.S. agreed that the investment funds would be paid within 45 business days from the date South Korea was notified of the U.S. President’s project selection. The government official stated, “Both South Korea and the U.S. understood and negotiated on the basis of ‘within 45 business days,’” adding, “The actual execution will also proceed accordingly.”
However, the English version of the MOU stipulates that the payment date shall be “on such date that is no less than forty-five business days after” the notification of the project selection. Literally, this means that funds cannot be disbursed until at least 45 business days have passed. The Korean-language version released by the Ministry of Trade, Industry and Energy also states, “a date at least 45 business days after.” Government explanatory materials similarly explained, “Payment will be made on a date at least 45 business days after receiving notification of the U.S. investment destination.” This indicates a discrepancy between the government’s explanation and the understanding of the actual negotiating parties.
The government explained that the phrase was included verbatim while adopting Japan’s MOU on investment in the United States. Indeed, the Japanese MOU also specifies that funds are to be provided on a “date no shorter than 45 business days” after the selection notification. However, it is reported that the parties to the U.S.-Japan negotiations understood and implemented this as “within 45 business days.” In essence, the discrepancy between the text of the document and the parties’ understanding began with the U.S.-Japan MOU, and this same discrepancy persisted when South Korea adopted it.
◇ U.S.: “Transfer by September”… Risk Pooling Also Scaled Back
Nevertheless, the government maintains that it is difficult to postpone the payment beyond 45 business days based on the wording of the MOU. This is because both South Korea and the U.S. understood the payment deadline to be within 45 business days, and the U.S. is exerting strong pressure for early execution.
The government is expected to report the U.S. investment plan to the National Assembly on the 17th, announce the implementation plan on the 18th, and then transfer $2.2 billion (approximately 3 trillion won) plus additional funds around the 29th or 30th. The Encinales Gas Combined Cycle Power Generation Project in Texas, with a total project cost of $22.3 billion, is the leading candidate for the first investment. A government official stated, “Given the intensity of U.S. demands, it is realistically difficult to argue for a payment after 45 business days based on the wording of the MOU.”
“Risk pooling,” a safeguard designed to diversify the risk of investment losses, has also been weakened in accordance with U.S. demands. While the original structure was intended to pool the profits and losses of multiple projects into an upper-tier investment special-purpose vehicle (SPV) so that losses from one project could be offset by profits from another, it has been confirmed that the formal contract reflects a plan to calculate profits and principal recovery on a project-by-project basis. While the umbrella of the parent investment SPV remains, the “insurance function”—which offsets profits and losses across projects—has effectively been removed.
The government maintains that it will preserve the remaining safeguards to the greatest extent possible while drafting the formal contract based on the current MOU. The profit-sharing ratio specified in Article 15 of the MOU will be maintained. Until both the principal and the deemed distribution amount corresponding to the agreed-upon interest are paid in full, the U.S. and South Korea will split the proceeds 50-50; thereafter, the distribution will be 90% for the U.S. and 10% for South Korea. A government official emphasized, “The pressure from the U.S. is stronger than expected,” adding, “We will do our utmost to reflect the commercial rationality of the project in the formal contract, which will be drafted based on the safeguards contained in the MOU.”