Key facts
- South Korea confirmed its first project under a $350 billion U.S. investment pact: a gas-fired power plant in Encinal, Texas.
- The Texas power plant project is valued at over $20 billion and is expected to supply electricity to AI data centers and chip factories.
- Seoul is also considering investing in two South Korean-designed nuclear reactors and acquiring a 5% to 10% stake in Westinghouse.
- U.S. officials, including President Donald Trump, had criticized Seoul for the slow pace of investment implementation.
- South Korean President Lee Jae Myung noted that commercial viability had become a sticking point in negotiations.
South Korea confirmed its first project under a $350 billion U.S. investment pact on Tuesday, selecting a gas-fired power plant in Encinal, Texas, valued at over $20 billion. The move aims to bolster bilateral trade and address concerns from U.S. officials, including President Donald Trump, about the pace of implementation.
Industry Minister Kim Jung-kwan briefed lawmakers on the plan, which also includes potential investments in two South Korean-designed nuclear reactors and a 5% to 10% stake in U.S. nuclear technology company Westinghouse. The Texas plant is expected to supply electricity to AI data centers and chip factories. U.S. officials had previously criticized Seoul for moving too slowly compared to other nations, with Trump threatening higher tariffs.
South Korean President Lee Jae Myung had acknowledged that commercial viability was a challenge as negotiations moved from broad agreements to specific projects. The deal requires approval from a U.S. government investment committee and further negotiation with U.S. Commerce Secretary Howard Lutnick, with Trump expected to make the final announcement.