South Korea Refutes Media Report on $22.3B Texas Gas Plant Investment

South Korea's Industry Ministry has refuted a domestic media report claiming a deal had been finalized for Seoul to invest approximately $22.3 billion in a Texas natural gas power plant. The ministry clarified that consultations with Washington are ongoing and that specific details of any potential investment have not been confirmed.

Details of the Reported Project

Korean media outlet Edaily reported on Monday that the two countries had agreed on the investment size for a new power facility in Encinal, Texas, citing unidentified officials. According to the report, the project involved:

• The construction of a 6.3-gigawatt natural gas-fired power plant.
• A stated purpose of meeting the surging electricity demand from artificial intelligence (AI) data centers.
• The investment would be Seoul's first under a major trade agreement signed last year.

The report did not specify whether South Korea would be responsible for the entire cost of the project.

Official Response and Broader Context

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In an official statement, South Korea’s Industry Ministry described the media reports on the Texas gas project as "inaccurate." The ministry emphasized that it is difficult to confirm specifics while consultations with the U.S. are still in progress and that a formal announcement will be made only after negotiations are complete and procedures like parliamentary approval are considered.

This potential investment is part of a larger trade deal where Seoul pledged $350 billion in U.S. investments in exchange for favorable U.S. tariffs on South Korean goods. The ministry also issued a separate statement denying that any decision had been made regarding other potential projects mentioned in media reports, such as building a nuclear power plant in the United States.

What This Means for Markets

While the official denial injects uncertainty, the report highlights the immense capital being directed toward infrastructure to support the AI industry's energy needs. A project of this magnitude would represent a significant foreign direct investment into the U.S. energy sector and strengthen economic ties between the two allies. For now, investors and energy market participants will await an official conclusion to the ongoing negotiations.