S. Korea to propose over US$100 bln in investment as part of tariff deal with U.S.

South Korea is expected to propose investing at least US$100 billion in the United States as part of its ongoing tariff negotiations with Washington, Yonhap News Agency reports citing local industry sources.

According to the sources, the Korean trade delegation, currently visiting Washington, had intended to make the proposal during "2+2" high-level trade consultations, which had been scheduled for Friday (U.S. time) but was canceled earlier in the day.

The proposed investment package, according to the sources, includes potential commitments from major South Korean conglomerates, including Samsung Group, SK Group, Hyundai Motor Group and LG Group.

The high-level meeting was called off due to an unspecified urgent schedule of U.S. Treasury Secretary Scott Bessent, according to the finance ministry. The meeting was set to bring together Bessent, U.S. Trade Representative (USTR) Jamieson Greer and their South Korean counterparts -- Finance Minister Koo Yun-cheol and Trade Minister Yeo Han-koo.

Despite the cancellation, Yeo plans to meet with his U.S. counterpart in Washington as planned, his office said.

The Ministry of Trade, Industry and Energy, which is leading the tariff negotiations with the U.S. administration, declined to confirm such an investment plan, requesting discretion in media reporting due to the sensitivity of the talks.

Earlier Thursday, Bloomberg also reported Seoul and Washington have discussed creating an investment fund as part of their trade deal, mirroring a recent trade agreement between the U.S. and Japan.

On Wednesday, U.S. President Donald Trump said he had reached a trade deal with Japan to lower the reciprocal tariffs for the country to 15 percent from the previously announced 25 percent.

In return, Tokyo pledged to invest $550 billion in the U.S. to help rebuild and expand core industries there, while also agreeing to further open its automobile and agricultural markets.

In response to the Trump administration's sweeping tariff policies, many South Korean companies have also been exploring additional investment opportunities in the U.S.

In March, Hyundai Motor Group announced its plan to invest $21 billion in the U.S. through 2028, including an investment of $8.6 billion for the automotive sector and $6.1 billion for the steel industry.

Samsung Electronics Co. and SK hynix Inc. are also reviewing an investment plan worth at least $37 billion and $3.87 billion, respectively, according to the sources.

"Japan's large-scale investment pledge played a key role in lowering the reciprocal tariff rate, which shows that South Korea also needs to present an investment amount commensurate with the size of its economy," an official familiar with the matter said anonymously.

"As far as I know, the government coordinated the matter with domestic companies as their cooperation is essential," the official added.