Key facts
- South Korea and the US are finalizing details of a $350 billion investment package.
- The package aims to lower US tariffs on South Korean goods.
- Discussions include a 6.3 GW gas-fired power plant in Texas for AI data centers.
- Up to eight large nuclear reactors are under discussion for construction in the US.
- South Korea is negotiating to acquire a stake in US nuclear company Westinghouse.
- South Korean President Lee Jae Myung stated he would not deploy military assets to the Middle East.
South Korea and the United States are in the final stages of implementing a $350 billion investment package agreed upon last year, which is intended to reduce US tariffs on South Korean goods. Discussions have been delayed by procedural issues and concerns over commercial viability, but both sides aim to finalize the deal to benefit bilateral relations.
Key projects under discussion include a 6.3-gigawatt combined-cycle gas power plant in Encinal, Texas, designed to supply electricity to AI data centers and semiconductor plants. Discussions also involve the potential construction of up to eight large nuclear reactors in the US, with six using technology from US company Westinghouse. South Korea is negotiating to acquire a stake in Westinghouse, seeking a board seat, though the US has offered a smaller stake.
South Korean President Lee Jae Myung stated he would not deploy military assets to the Middle East in a way that could draw the country into conflict, but Seoul is reviewing its role in safeguarding navigation in the region. US Secretary of State Marco Rubio stressed the swift execution of South Korea's investment commitments, while both sides agreed to maintain communication to ensure ongoing consultation plans bear fruit. Rubio and Cho also pledged collaboration in strategic sectors like semiconductors and underscored the need for a fair business environment for US companies in South Korea. They also reaffirmed commitment to North Korea's denuclearization.