South Korea denies report it is considering chip project as first investment under US$350 billion US pledge

[SEOUL] South Korea denied a local media report that the government is discussing a semiconductor project as the first investment under its US$350 billion commitment to the US.

A report that the two countries are discussing semiconductors as a candidate for the first strategic investment project “is not true”, the presidential Blue House said in a text message on Tuesday (Aug 18).

It declined to provide details of talks between Seoul and Washington over the investment pledge. 

The statement followed a report by the JoongAng Ilbo newspaper that the first project, which Seoul had aimed to announce later in August, was facing uncertainty after Washington unexpectedly sought investment in US memory chip facilities. 

The US request was a key topic at a closed-door trade meeting held at the Blue House on Aug 13, the newspaper reported, citing unidentified ruling party officials.

Seoul had initially prioritised the energy sector for its first major US investment, according to the report. 

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Asean Intelligence

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Officials at the meeting largely viewed investment in the US memory chip facilities as impractical because Samsung Electronics and SK Hynix have already committed to spend at least US$880 billion to build chips and data centres, mainly in South Korea’s southern Honam region, the newspaper said. 

Industry Minister Kim Jung-kwan arrived in Washington on Sunday to resolve last minute issues over the US investment package.

Kim said detailed practical issues had emerged, but Seoul and Washington were still aiming to finalise talks and announce investment projects as early as late August. BLOOMBERG