South Korea has launched a state-backed corporation to oversee and implement a US$350 billion investment commitment in the United States, a key component of a broader trade arrangement between Seoul and Washington.
The Korea-US Strategic Investment Corporation was formally established on Thursday after a special act governing the fund took effect, according to South Korea’s finance ministry.
The new body will be responsible for managing a strategic investment fund designed to channel capital into priority sectors, including advanced industries, energy infrastructure, shipbuilding and supply chains for batteries and advanced materials.
Under the framework, the US$350 billion package comprises US$200 billion in strategic investments across advanced sectors and a further US$150 billion allocated to shipbuilding projects led by South Korean firms.
Park Jong-won, a former deputy minister for trade, has been appointed as the corporation’s first chief. He said the organisation would focus on structured investment cooperation between the two countries amid shifting global economic conditions.
“The corporation is a dedicated body to systematically promote investment cooperation between South Korea and the United States at a time of great transformation, when a new economic order is taking shape,” Park said.
“We will do our utmost to strengthen industrial cooperation between the two countries in strategic sectors agreed by both sides, including energy and shipbuilding.”
Projects under the fund will be assessed based on commercial viability, including whether they can generate sufficient cash flow to repay principal and interest, in line with the special act and implementing guidelines.
Local reports suggest potential projects could include liquefied natural gas (LNG) and wider energy infrastructure developments.
However, South Korean officials have said no specific projects have been finalised yet, with discussions with Washington still ongoing.
The initiative forms part of broader efforts by Seoul and Washington to deepen industrial cooperation in key strategic sectors while reshaping supply chain and investment ties between the two allies.
