South Korea's $350B US Investment Plan Takes Shape With Texas Power Plant, Nuclear Projects

South Korea and the United States are finalizing the implementation of Seoul’s pledged $350 billion investment package, a key component of a trade deal struck last year. Details of the strategic investments are now emerging, with a focus on large-scale energy projects in Texas and the U.S. nuclear sector.

The Investment Framework

The comprehensive package, which followed a deal that lowered U.S. tariffs on South Korean goods, is still under review by a U.S. government investment committee, South Korea’s industry ministry told lawmakers. Of the total $350 billion, $150 billion is earmarked for shipbuilding, with the remaining $200 billion allocated for strategic investments like those now being detailed.

According to media reports and South Korean lawmakers, the first confirmed project is a more than 6-gigawatt combined-cycle gas power plant in Encinal, Texas. Seoul plans to invest over $20 billion in the facility, which is designed to supply electricity to AI data centers and semiconductor plants.

Nuclear Expansion and Strategic Stakes

A significant portion of the investment is targeted at the U.S. nuclear industry. Discussions are underway for the construction of up to eight large nuclear reactors, which could represent a substantial investment at an estimated cost of about $15 billion per reactor, according to the Korea Economic Daily.

Ad

The current proposal reportedly involves building six reactors using Westinghouse’s AP1000 technology and two using South Korea’s own APR1400 design, which would be a first for the Korean-designed reactors in the United States. Separately, Seoul is negotiating to acquire a 5% to 10% stake in the U.S. nuclear company Westinghouse, with the final value contingent on the company's planned initial public offering.

Other Potential Ventures

Several other large-scale projects are also under consideration as part of the investment memorandum, though decisions have not been finalized. These potential ventures include:

• Alaska LNG Project: South Korean participation in the long-stalled $50 billion Alaska liquefied natural gas pipeline and export terminal.
• Spent Nuclear Fuel: A U.S. proposal for South Korean support in reprocessing 4,000 tons of spent nuclear fuel, which Yonhap News Agency reports is linked to Seoul's ambitions to build nuclear-powered submarines.
• Carbon Capture: Investment in carbon capture, utilization, and storage (CCUS) technology, an area where major U.S. energy firms are active.