Korea, U.S. close to $200 billion investment deal, minister says

Industry Minister Kim Jung-kwan said Sunday that Korea and the United States are close to an agreement on many issues in their investment negotiations, but cautioned that "there are still issues remaining until the final signing."

"It's true that we are close to an agreement, but there are still a few issues remaining," he told reporters at Incheon International Airport upon returning from Washington, where he wrapped up investment negotiations with the United States.

The two sides are set to hold another video conference early this week after completing internal procedures. "Our goal is to make an announcement if we reach a final agreement this week," he said.

The first and second investment projects are increasingly likely to be a gas-fired combined-cycle power plant in Encinal, Texas, and the construction of eight nuclear reactors, though Kim declined to discuss specifics. "It's difficult to talk about specific projects yet," he said.

Concerns have emerged that Korea's investment could exceed the agreed $200 billion cap if the Alaska liquefied natural gas project — seen as lacking commercial viability — is added to the package. Kim rejected that possibility, saying the $200 billion overall cap and $20 billion annual cap would be honored as originally agreed. "I don't think there will be any excess," he said. "That's what both sides agreed to."

Asked whether Korea and the United States had found common ground on U.S. demands such as the structure of a special purpose vehicle, Kim reiterated that many issues were close to resolution but that negotiations are never final until the last signature. "It is true that we are close to an agreement on many issues, but as with any negotiation, issues remain until the final signing," he said. "It's not over until the final signature."

BY NAM SOO-HYUN [[email protected]]