A report that the two countries are discussing semiconductors as a candidate for the first strategic investment project “is not true,” the presidential Blue House said in a text message Tuesday. It declined to provide details of talks between Seoul and Washington over the investment pledge. 

The statement followed a report by the JoongAng Ilbo newspaper that the first project, which Seoul had aimed to announce later this month, was facing uncertainty after Washington unexpectedly sought investment in US memory-chip facilities. 

The US request was a key topic at a closed-door trade meeting held at the Blue House on Aug. 13, the newspaper reported, citing unidentified ruling-party officials. Seoul had initially prioritised the energy sector for its first major US investment, according to the report. 

Officials at the meeting largely viewed investment in the US memory-chip facilities as impractical because Samsung Electronics Co and SK Hynix Inc have already committed to spend at least US$880 billion to build chips and data centres, mainly in South Korea’s southern Honam region, the newspaper said. 

Industry Minister Kim Jung-kwan arrived in Washington Sunday to resolve last-minute issues over the US investment package. Kim said detailed practical issues had emerged, but Seoul and Washington were still aiming to finalize talks and announce investment projects as early as late August.

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