South Korea Denies Chips Will Be First Project of $350 Billion US Investment as Talks Progress

TradingKey - The South Korean government on Tuesday denied reports that memory chips would be the first project under South Korea's $350 billion investment in the US, saying the claims were untrue.

South Korea's presidential office said via text message the same day that reports of the US and South Korea discussing memory chips as the first strategic investment project were "untrue," while declining to disclose specific details of negotiations surrounding the investment commitment.

Earlier, South Korea's JoongAng Ilbo reported that Seoul had originally planned to announce its first investment project in the US by the end of August, but the plan faced uncertainty after the US side suddenly requested investment in US memory chip plants. According to the report, during a closed-door trade meeting at the South Korean presidential office on August 13, the US-proposed memory chip investment plan was a key topic of discussion, whereas South Korea had previously preferred energy projects as its first major investment in the US.

The report added that South Korea harbors doubts about the feasibility of investing in US memory chip facilities. Samsung Electronics and SK Hynix have already planned large-scale capital investments in South Korea for chip and data center construction, making further allocation of capital to US memory chip capacity subject to practical issues such as costs and resource allocation.

Meanwhile, the US and South Korea remain in talks over specific arrangements for the $350 billion investment commitment. Kim Jung-gwan, South Korea's Minister of Trade, Industry and Energy, arrived in Washington on Sunday to push forward negotiations on the proposals. He noted that while practical issues remain to be addressed, both sides still aim to conclude discussions and announce the initial investment project by the end of August.

At present, it remains uncertain whether memory chips will become the breakthrough for South Korea's investment plan in the US. Other sectors, such as energy, may remain candidate options, with the final arrangement dependent on subsequent negotiations between the two nations.