[Edaily Kim Sang-yoon Reporters Hwang Byung-seo and Lee Hye-ra] President Lee Jae-myung stated that, regarding the $350 billion strategic investment with the U.S., there are certain aspects of the agreement drafted by working-level officials that are difficult to accept, and that he is therefore holding further discussions with the U.S. side. The President personally confirmed that the reason the government postponed its initial plan to announce the first investment project this week—after originally intending to report to the National Assembly and make the announcement—was due to last-minute disagreements over the recovery of investment funds, profit distribution, and the handling of losses.
He also expressed a cautious stance regarding the U.S. demand—separate from the U.S. investment fund—that Samsung Electronics and SK Hynix construct additional local memory semiconductor production facilities. Given that U.S. investment could conflict with the government’s Honam semiconductor mega-project in terms of investment funding and the allocation of production capacity, he stated that a decision would be made after carefully weighing both corporate management decisions and domestic industrial strategy.

At a press conference held at the Blue House State Guest House on the 18th, when asked about the progress of negotiations on investments in the U.S., President Lee said, “The working-level negotiation team says an agreement has almost been reached, but after reviewing the details, there are parts I find difficult to agree with, so we are discussing them again.”
The government had initially planned to report the first investment project to the National Assembly and disclose relevant details this week following discussions by the U.S.-Korea Investment Project Management Committee and the Steering Committee. However, as the National Assembly report—originally scheduled for the 17th—was postponed to the 22nd and the government’s announcement was also put on hold, speculation has arisen that final coordination between South Korea and the U.S. has not yet been completed.
Based on President Lee’s remarks that day, it appears that a final agreement has not been reached not only on investment projects that cannot ensure profitability but also on the operational structure of the umbrella-type Investment Special Purpose Vehicle (I-SPV) and the conditions for the recovery and distribution of investment funds. In particular, it is interpreted that the risks to be borne by the South Korean side in the event of project losses and the ability to properly recover the principal and interest of the investment have emerged as key sticking points in the final stages. President Lee did not specify a timeline for concluding the negotiations or making a final announcement.
President Lee emphasized, “The issue of investment in the U.S. is a highly complex and difficult challenge that has multifaceted implications for U.S.-Korea relations,” adding, “We are talking about $350 billion—approximately 500 trillion won—which amounts to taxpayers’ money.” He noted that while a compromise was reached after considering tariffs, U.S.-Korea relations, and the terms of agreements with Japan, Taiwan, and Singapore, the process was “extremely difficult and arduous.”
He also revealed the process by which the term “commercial rationality” was included in the Memorandum of Understanding (MOU) on investment in the U.S. President Lee said, “No compromise had been reached by 7:30 a.m. on the day of the second summit, but fortunately, we were able to include the phrase ‘commercial rationality’ as we had wanted,” adding, “It is a phrase not found in agreements with other countries.”
He further noted, “We only undertake projects that demonstrate commercial rationality. The law also stipulates that commercial rationality must be assessed,” and pointed out, “The issues at hand are how to recoup investments, how to distribute profits, and how to handle projects that incur losses.”
This signifies that “commercial rationality”—a principle the government has consistently emphasized—has emerged as a key point of contention between South Korea and the U.S. during the stage of structuring the actual investment framework, moving beyond mere declarative language. It is interpreted as making it clear that even if a target investment project demonstrates a certain level of profitability, final approval will be difficult if the profit-sharing or loss-bearing structure is unfavorable to South Korea.
President Lee emphasized, “I believe national interests are truly important and must not be swayed by any relationships, pressure, or coercion,” adding, “We are engaging in intense debate and consultation to structure the project in a way that does not compromise South Korea’s national interests and benefits both South Korea and the United States.” However, he drew a clear line, stating that this does not mean the United States is actually exerting pressure or coercion.
The U.S. demand for additional semiconductor investment also remains a separate issue to be resolved between South Korea and the U.S. It is reported that the U.S. government has requested that Samsung Electronics and SK Hynix expand their memory semiconductor production facilities in the United States. This is a direct investment matter requiring individual companies to invest their own funds, rather than a project funded by the government-established fund for investment in the U.S.
President Lee said, “It appears that Taiwan is establishing semiconductor factories in the U.S., and Samsung and SK Hynix are already building semiconductor factories there as well,” adding, “The extent to which they will expand further is a matter related to the business decisions of the companies in question and the Republic of Korea’s industrial strategy.”
He continued, “We will reach a reasonable conclusion that respects the opinions of the companies while ensuring that South Korea’s national interests are protected,” noting that “it remains a subject of debate.”
Building additional memory factories in the U.S. requires massive funds and long-term investment. If Samsung Electronics and SK Hynix significantly expand their investments in the U.S., their priorities may conflict with those of the Honam Semiconductor Mega Project—which the government is promoting to expand South Korea’s domestic semiconductor production base. This creates a situation where corporate business strategies intersect with the government’s industrial and regional balanced development policies regarding how to prioritize the allocation of limited funds, manpower, and equipment between the U.S. and South Korea.
Although President Lee has clearly stated that he will uphold “commercial rationality,” the question remains as to how well the government can actually adhere to this principle during negotiations with the U.S. The Trump administration is using tariffs and access to the U.S. market as leverage to demand that allies and foreign companies expand local production and investment. If the announcement of investment projects in the U.S. is further delayed or if demands for additional semiconductor investment by Korean companies are not accepted, it is difficult to rule out the possibility that U.S. pressure could spill over into other trade issues.
Conversely, if South Korea rushes to accept U.S. demands, concerns may arise that public funds will be diverted to projects with uncertain profitability or that the domestic semiconductor production base could be weakened. In particular, the Honam semiconductor project holds significant policy implications—including the expansion of domestic supply chains and balanced regional development—creating a dilemma that makes it difficult to readily “go all in” on investment in the U.S. alone.