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U.S. Commerce Secretary Howard Lutnick recently acknowledged the distress caused by the detention of more than 300 South Korean nationals at a battery plant in Georgia, an incident that occurred during a raid by U.S. immigration authorities.

Addressing concerns raised by South Korean officials, Lutnick indicated his commitment to resolving this issue during the ongoing trade discussions. Industry Minister Kim Jung Kwan, speaking at a press conference following his trip to Washington, noted that the immigration raid was a regrettable event that had unsettled relations between the two countries.

The South Korean nationals, who were detained during a construction operation involving a joint venture between Hyundai Motor Co. and LG Energy Solution Ltd., have returned home, except for one individual who chose to remain in the U.S. This incident has sparked criticism in South Korea and raised questions about a $350 billion investment commitment made by Seoul as part of a framework deal struck with Washington in late July. Experts are now calling for a reassessment of this investment plan, which aimed to facilitate reciprocal tariff reductions.

In exchange for the investment pledge, the U.S. agreed to lower its tariffs on South Korean goods, which had been proposed at 25 percent, now set to decrease to 15 percent. Kim emphasized that despite calls for South Korea to support local companies while facing the full tariff, the government remains focused on negotiating a mutually beneficial agreement with the U.S. He remarked on the shifting dynamics of U.S. policy, suggesting that the country has evolved significantly over the past two decades, likening the current negotiations to a challenging yet strategic game of ping pong.

Discussions between the two nations have revealed differences concerning the planned investment's financial structure and profit-sharing. South Korea aims to leverage loans and credit guarantees, while the U.S. is advocating for direct investments. Amid these negotiations, Kim reassured stakeholders that the investment projects would ultimately benefit Korean companies.

Domestically, Kim stressed the urgency of advancing plans to construct two new nuclear power plants and a small modular reactor to meet projected energy demands. These projects were affirmed under the 11th basic plan for electricity supply and demand, yet recent comments from the environment minister have raised concerns about potential delays due to calls for public reviews.

As the government reorganizes, transferring energy policy responsibilities from the industry ministry to the environment ministry, Kim reiterated the need for new nuclear facilities to stabilize energy prices and ensure supply. In light of the controversial settlement deal between Korea Hydro Nuclear Power Co. and U.S. firm Westinghouse, which may limit future bidding opportunities for the Korean firm, an investigation is underway to ensure procedural compliance.

Beyond tariff negotiations, Kim highlighted the importance of fostering artificial intelligence (AI) transformation within Korea's manufacturing sector, emphasizing that this technological advancement will play a pivotal role in the country's industrial future. The government recently unveiled a roadmap aimed at developing humanoid robots, autonomous vehicles powered by AI, and establishing 500 AI factories by 2030.