South Korea to Brief Lawmakers on $350 Billion US Investment Plan Amid Profitability Concerns

The South Korean government is scheduled to brief lawmakers on Tuesday regarding a $350 billion investment package in the United States, a critical step in finalizing a bilateral trade deal. The briefing comes amid growing concerns from officials and lawmakers over the commercial viability and potential financial risks of the proposed projects.

Details of the Investment Package

The investment commitment is a cornerstone of a trade agreement reached last year, where Seoul pledged to invest in U.S. manufacturing in exchange for Washington lowering tariffs on South Korean goods to 15%. The briefing to the National Assembly’s trade committee is seen as one of the last hurdles before a formal announcement can be made.

Of the total $350 billion package:

• $150 billion has been allocated for the shipbuilding industry.
• $200 billion is designated for other strategic investments, the details of which are still under negotiation.

According to South Korean media reports, projects under discussion include a $22.3 billion, 6.3-gigawatt gas-fired power plant in Texas to supply AI data centers, the construction of up to eight large nuclear reactors, and a potential stake in the U.S. nuclear firm Westinghouse.

Profitability Becomes a Sticking Point

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President Lee Jae Myung stated on Friday that commercial viability has become a significant obstacle as negotiators delve into the specifics of individual projects. He noted that Seoul is pushing to ensure the agreement specifies "commercially reasonable" investments, addressing questions about returns, profit-sharing, and the handling of potential losses.

These concerns are echoed by opposition lawmakers who have called for closer parliamentary scrutiny. Kim Sung-won, chair of the trade committee, said Monday that worries have intensified over the terms for proposed nuclear and power generation investments, warning that South Korea could be exposed to disproportionate financial risks.

Trade and Geopolitical Context

Further delays in implementing the investment plan could create renewed friction with Washington. The source material notes that U.S. President Donald Trump had previously threatened South Korea with higher tariffs over the pace of the agreement's implementation.

The briefing's timing is significant, as President Lee traveled to the United States on Monday to attend the UN General Assembly. He is reportedly seeking meetings with President Trump and other leaders, adding urgency to the ongoing negotiations.