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Seoul, Washington may discuss U.S. investment toward Korea Zinc refinery

Published: 18 Dec. 2025, 08:08

Industry Minister Kim Jung-kwan (R) speaks to reporters at the government complex in the administrative city of Sejong after a policy briefing to President Lee Jae Myung on Dec. 17. [YONHAP]

The use of Korea's special U.S. investment fund for Korea Zinc's plan to build a critical metals refinery in the southern region of the United States is "a matter to be discussed" with Washington, Industry Minister Kim Jung-kwan said Wednesday.

Kim made the remarks at a press briefing held shortly after a Ministry of Trade, Industry and Resources policy briefing to President Lee Jae Myung, when asked if there are any concerns over the financial pressure on Korea Zinc from the company's investment plan in the United States.

"As I understand, Korea Zinc has calculated the costs and returns of this business," Kim said, noting that Seoul and Washington can discuss using Korea's special fund for U.S. investment in this case.

"But we have not held such discussions at this point."

Earlier this week, Korea's biggest zinc smelter said the company and the U.S. government are seeking to jointly invest around 10 trillion won ($6.8 billion) to construct a critical metals refinery in Clarksville, Tennessee.

Kim said Korea Zinc's plan will not only help the company but also help Korea secure supply chains for rare earths and critical minerals.

"It is also a project widely welcomed by the U.S. Department of Commerce as it involves investment in the United States," he added.

Seoul plans to set up the Korea-U.S. strategic investment fund for its $200 billion investment commitment made in exchange for lower U.S. tariffs under the finalized tariff deal between the two countries.

Meanwhile, Trade Minister Yeo Han-koo told reporters that Korea and the United States are seeking to hold a joint FTA committee early next year to discuss nontariff issues, including those related to agriculture, online platforms and intellectual properties.

Yonhap