South Korea and the United States are working to finalize a major $350 billion investment package linked to a trade agreement that reduced U.S. tariffs on South Korean goods to 15%. The package includes shipbuilding, energy, nuclear power, and other strategic projects. Several proposals have now moved into detailed discussions, while others still need approval and further negotiations.
South Korea has committed $350 billion in investments under the trade deal. About $150 billion is set aside for shipbuilding. The remaining $200 billion covers strategic investments, although the final list has not yet been completed.
South Korea’s industry ministry told lawmakers on Tuesday that President Donald Trump is expected to make a final announcement. Before that happens, the package must go through review by a U.S. government investment committee. Negotiations with U.S. Commerce Secretary Howard Lutnick also remain part of the process.
Several projects have emerged through reports from South Korean media and briefings provided to lawmakers.
Texas Gas-Fired Power Plant
Instagram | dialogue_capital | South Korea plans to fund a $20 billion, 6-gigawatt Texas power plant built to fuel AI data centers and chip production.
The first confirmed project involves a large natural gas power plant in Encinal, Texas. The combined-cycle facility would have more than 6 gigawatts of generating capacity. Its main purpose would be to provide electricity for artificial intelligence data centers and semiconductor manufacturing plants.
South Korea plans to invest more than $20 billion in the project, according to the industry ministry. Lawmakers said the plant could generate returns of roughly $43 billion to $45 billion over about 20 years.
According to Yonhap News Agency, South Korea would provide the full funding at the start, while ownership would initially be divided equally between the United States and South Korea.
That structure could change. A South Korean lawmaker cited by Yonhap said U.S. officials are seeking a long-term arrangement in which the U.S. side would hold 90% and South Korea would retain 10%.
Lawmakers have described the Texas project as the first confirmed investment under the broader package.
Nuclear Reactors and Westinghouse
Nuclear power could account for a substantial share of the planned investment. Seoul and Washington are discussing as many as eight large nuclear reactors in the United States.
Media reports, including Korea Economic Daily, have placed the estimated cost at about $15 billion per reactor. Current discussions reportedly include six reactors based on Westinghouse’s AP1000 technology and two using South Korea’s APR1400 design.
If the APR1400 units move forward, they would mark the first deployment of South Korean-designed reactors in the United States.
South Korea is also discussing a possible investment in Westinghouse. Lawmakers said Seoul is considering a 5% to 10% stake while retaining voting rights, according to Yonhap.
The potential value depends on Westinghouse’s valuation before a planned initial public offering. Korea Economic Daily has estimated that the company could be valued at $15 billion to $20 billion. At those figures, a 15% stake would be worth about $2.25 billion to $3 billion.
Westinghouse is currently owned by Canadian asset manager Brookfield and its partners, which hold 51%, while Canadian uranium producer Cameco owns the remaining 49%.
Alaska LNG Still Under Review
Instagram | wealth | South Korea considers backing the long-delayed Alaska LNG project supported by Trump.
South Korea is also considering participation in the Alaska LNG project, a long-delayed natural gas development supported by Trump.
The proposed project carries an estimated value of $50 billion. It would move natural gas from northern Alaska through a 1,300-kilometer, or 807-mile, pipeline to Nikiski. The gas would then be prepared for export to Asian markets.
Seoul has taken a cautious position on the project. Industry Minister Kim described Alaska LNG as a “high-risk business” when speaking to parliament last November.
South Korean media reports indicate that Seoul has sought to include Alaska LNG in the investment memorandum without making a binding commitment. Lawmakers said discussions are continuing, and no final decision has been made.
Other Projects Being Discussed
Washington is also seeking South Korean involvement in spent nuclear fuel reprocessing, according to ruling party lawmaker Yoon Hu-duk. The proposed project could involve processing 4,000 tons of spent nuclear fuel.
The issue is connected to South Korea’s plans for nuclear-powered submarines and its efforts to secure fuel supplies, Yonhap reported. At a leaders’ summit last November, the United States approved South Korean plans to build a nuclear-powered submarine and agreed to work with Seoul on fuel procurement.
Carbon capture, utilization and storage, or CCUS, is another possible area of cooperation. Yoon said the two countries are discussing the sector, where major U.S. energy companies have already attracted significant investment.
The investment package remains partly unsettled. The Texas power plant has been identified as the first confirmed project, while the nuclear reactor plans, Westinghouse stake, Alaska LNG participation, spent fuel processing, and CCUS proposals remain at different stages of discussion.
South Korea’s $350 billion commitment covers a wide range of U.S.-based projects, from power generation and nuclear technology to shipbuilding and energy infrastructure. The final structure will depend on government review and ongoing negotiations.
Until those steps are completed, several investment figures, ownership arrangements, and project commitments remain subject to change.
