South Korea denies semiconductors are first US investment project

South Korea’s Industry Ministry has denied reports that semiconductor production is being considered as the first strategic investment project under Seoul’s $350 billion investment commitment to the United States. While the ministry confirmed that discussions regarding potential investment projects and related tariff issues are ongoing, it declined to disclose specific details.

Industry Minister Kim Jung-kwan has traveled to Washington to negotiate the investment package. Although the government initially aimed to announce the first project by late August or early September, Kim noted that various specific issues have emerged at the working level as negotiations enter their final stages.

Previous reports suggested that South Korea had prioritized energy projects but faced pressure from Washington to shift focus toward US-based memory chip production facilities. Some analysts suggest that delays in finalizing these investment locations could impact bilateral trade relations and security cooperation.