Nearly a year after South Korea pledged to invest $350 billion in the United States as part of a broader trade agreement, no projects have yet been formally announced, raising concerns in Washington and unease in Seoul.
The commitment was made last year alongside a deal that reduced threatened U.S. tariffs on South Korean goods from 25% to 15%. Under the terms, South Korea agreed to invest $150 billion in shipbuilding and $200 billion in strategic industries, with an annual outlay capped at $20 billion. By comparison, Japan committed $550 billion under a similar arrangement without an annual cap and has already announced major projects, including a $33 billion gas-fired power plant in Ohio and up to $40 billion in small modular nuclear reactor development across Tennessee and Alabama.
Despite speculation in Korean media about potential investments—such as a gas-fired power project in Texas and new nuclear plants—South Korean officials have been cautious, emphasizing that details on investment destinations, amounts, and timelines have not been finalized. The Blue House stated last week that no specific plans or initial remittance dates have been determined.
U.S. officials familiar with the situation expressed frustration over the slow pace, with one source urging Seoul to accelerate its efforts or face possible repercussions from President Donald Trump. Some analysts link this tension to Trump’s recent criticism of South Korea’s stance on the U.S. campaign against Iran, which was seen as a response to delayed investment progress. Jennifer Lee, a partner at The Asia Group in Washington, noted significant frustration within the U.S. government, especially as South Korea trails Japan in publicizing investment commitments.
Experts acknowledge differences in how the two governments interpret the agreement. Washington is pressing for large-scale investments in single projects and greater U.S. influence in project selection, particularly emphasizing advanced memory chip production by Samsung Electronics and SK Hynix. South Korea, however, is cautious, mindful of the strategic importance of its semiconductor industry and the significant domestic investments already underway by its chipmakers.
The issue of shipbuilding may offer Seoul some leverage. South Korea, the world’s second-largest shipbuilder after China, holds advanced expertise that the U.S. seeks to incorporate into its own shipyards as part of Trump’s plans to revive American shipbuilding.
Korean companies are also reportedly unsettled by last year’s immigration raid on a Hyundai-LG Energy Solution battery plant in Georgia, which President Lee Jae Myung said could make firms hesitant to invest in the United States.
Analysts warn that the longer South Korea waits to announce projects, the greater the risk that Washington perceives it as reluctant to fulfill its commitments. The upcoming U.S. midterm elections may add further pressure, with some suggesting that delivering visible investments could bolster Trump’s political messaging.
The investment dispute intertwines with broader tensions in U.S.-South Korea relations. Last month, Trump ordered a reduction of the annual Ulchi Freedom Shield military exercise, drawing a rebuke from South Korea and adding to an atmosphere of uncertainty. Trump also criticized South Korea for not supporting the U.S. military campaign against Iran, highlighting strained diplomatic ties amid the economic disagreements.
Observers caution that symbolic gestures in military cooperation are unlikely to sway the U.S. administration’s stance on investment, which appears focused on maximizing tangible economic gains.