US officials have pressed South Korea to make memory chip manufacturing its first strategic investment in the US, according to a report cited by JoongAng Daily. The claim added fresh uncertainty to an investment package that Seoul had expected to unveil by the end of August 2026, even as the South Korean government quickly denied that semiconductors were being treated as the first candidate.
Industry sources told JoongAng Daily that Seoul had initially planned to lead with an energy project in its US investment portfolio, but Washington allegedly shifted the focus toward memory production facilities in the US. The reported demand was discussed at a closed-door economic and trade meeting at the presidential office in Seoul, where most officials said such an investment would be unrealistic given existing commitments in South Korea.
Samsung Electronics and SK Hynix have already pledged at least US$880 billion to build semiconductor and data center facilities in South Korea's Honam region and other locations, according to the report. The presidential office and the Ministry of Trade, Industry and Energy said the claim that Korea and the US were discussing semiconductors as the first strategic investment choice was not true. Bloomberg, inews24 and Financial News also reported the denial.
MOTIE said talks with the US on strategic investment projects are continuing, but it would not confirm specific details. The ministry also said its officials remain engaged with Washington on investment plans and related trade issues.
MOTIE Minister Kim Jung-kwan arrived in Washington on Aug. 17 to discuss US investment projects and additional tariffs under Section 301 of the US trade law. His return date had not yet been set. The renewed focus on investment and tariff pressure has deepened uncertainty around Korea-US trade negotiations, with the US also raising the possibility of higher tariffs if Seoul does not fulfill its commitments.
Article edited by Jack Wu
