Business groups in South Korea and the United States urged both governments to first resolve visa and permit issues so that $350 billion (about 473 trillion won) in investment in the U.S. can proceed without disruption. With large-scale investment getting under way in strategic industries such as semiconductors, shipbuilding, artificial intelligence and energy, they called for faster permitting procedures and stronger institutional support to allow the smooth movement of personnel.
The Federation of Korean Industries, together with the U.S. Chamber of Commerce, held the 36th plenary meeting of the Korea-U.S. Business Council at the FKI Tower in Seoul's Yeouido district on the 15th. The meeting was the first official cooperation event held by the two countries' business communities since the two governments announced three strategic investment projects in the U.S. on the 1st of this month.
In his opening address, FKI Chairman Ryu Jin said the strategic investments agreed on by the two governments have now entered a full-scale implementation phase. "From now on, it is companies' turn," he said. "It is companies that will turn the framework for cooperation prepared by the government into tangible results."
Korean companies' investment in the U.S. has indeed been rising quickly. According to the Export-Import Bank of Korea, South Korea's direct investment in the U.S. totaled $206.3 billion (about 279 trillion won) over the 10 years from 2016 through last year, or an annual average of $20.6 billion (about 28 trillion won).
The areas of cooperation drawing attention from companies in both countries range from semiconductors to shipbuilding. In particular, a gas-fired combined-cycle power plant project in Texas, nuclear power cooperation in the U.S. and an Alaska liquefied natural gas project — all announced by the two governments this month — have emerged as new opportunities for cooperation. The Texas power project is a large-scale infrastructure investment aimed at supplying electricity to AI data centers, and Korean companies are expected to supply power generation equipment and take part in design and construction.
Under the theme "From Chips to Ships," the plenary discussed responses to rising electricity demand from the expansion of AI infrastructure, ways to strengthen semiconductor supply chains and cooperation in shipbuilding. In pharmaceuticals and biotechnology, participants also discussed new drug research and development, clinical cooperation and ways to strengthen supply chains for essential medicines.
The two countries' business communities also plan to adopt a joint statement reflecting the day's discussions, based on the view that a stable business environment must be in place if investment plans are to translate into actual plant construction and operations. The joint statement is expected to call for faster permitting procedures, resolution of visa issues to allow smooth exchanges of personnel and the creation of a predictable investment environment.
In a congratulatory address, Minister of Trade and Industry Kim Jung-kwan said that while the Korea-U.S. alliance once strengthened industrial cooperation between the two countries, industrial cooperation has now become a key driving force making the alliance even stronger.
About 60 government and business figures from both countries attended the plenary, including Hanjin Group Chairman Cho Won-tae and Samsung Electronics President Park Seung-hee. The U.S. side included Chubb Group Chairman Evan Greenberg and U.S. Ambassador to South Korea Michelle Steel. Former U.S. House Speaker Kevin McCarthy is to take part in a special session on possible changes in trade and foreign policy after the U.S. midterm elections.