Lawmakers scrutinize Korea-US Strategic Investment Corp's risk management amid $350 billion pact
Lawmakers from both ruling and opposition parties interrogated Korea-U.S. Strategic Investment Corp over its ability to manage risks tied to the $350 billion U.S. investment commitment.
In a first-ever parliamentary audit since its June launch, Korea-U.S. Strategic Investment Corp faced questioning from both ruling Democratic Party and opposition People Power Party lawmakers about its risk-management practices for the $350 billion U.S. investment scheme. Rep. Jung Sung-ho cited the corporation’s limited legal expertise, pointing out that its risk-management committee has only one U.S. attorney, while Rep. Lee Jong-wook criticized the handling of a $2.4 billion remittance for Project Star in Texas, noting the mandatory committee meeting occurred only after the transfer.
The audit also revealed the firm is staffed with 32 employees against a ceiling of 50, and its strategic investment division chief resigned after two months, leaving the role vacant. President Park Jong-won responded that risk assessments were conducted with government input and promised to fill vacancies, recruit additional legal specialists, and engage major external law firms to handle contract and dispute risks. The scrutiny comes as South Korea begins disbursing payments under the investment agreement, which promises up to $200 billion in cash in exchange for reduced U.S. tariffs.
Why it matters
Oversight of the massive investment program affects South Korea's economy and the trade benefits promised under the U.S. pact.
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