The United States and South Korea announced a "historic" investment by South Korea into the U.S. U.S. President Donald Trump stated that this new investment of $200 billion will help the U.S. transform "for generations to come."
South Korean investments include nuclear power plants, a natural gas power generation facility in Texas, as well as potential involvement in the long-term planned LNG project in Alaska.
Trump said at the White House on Wednesday, "We are very pleased to announce one of the largest investments in energy infrastructure in U.S. history," and added that South Korea will invest up to $200 billion.
Whether South Korea will participate in the Alaska LNG project has not been finally decided. The joint statement stated that this will depend on "commercial viability," but no details regarding the funding allocation for the project were provided.
However, later on Wednesday local time in the United States, Trump posted on Truth Social stating that the two countries had agreed to advance the Alaska LNG project, setting its value at $50 billion.
Due to concerns about commercial viability, South Korea has not made any commitments regarding this project yet. Last year, Korean Industry Minister Kim Jung-gwan described it as "high-risk" and stated that participation would be difficult unless sufficient cash flow could be generated, according to a report by Yonhap News Agency.
According to Yonhap News, the LNG project in Alaska will transport natural gas from gas fields on the northern slope of Alaska over a distance of about 1,300 kilometers to the southern part of the state, where it will be liquefied and then exported to markets including Asia. Due to the need for substantial upfront investment, the project has long faced economic doubts.
A joint statement stated that the United States will assist Korean suppliers and contractors to participate in the project beneficially.
The overall investment plan includes the construction of a 6,472 megawatt natural gas power generation facility in Ein卡尔, Texas ( Encinal ), with an investment of 22.3 billion US dollars. This facility will supply power to a data center located at the same site. The project will be led by the developer Related Companies and the American Electric Power Company NextEra Energy. The first phase is expected to begin commercial operation in 2029, and the entire facility will be fully operational in phases by 2032.
Trump stated that these investments will transform South Korea's commitments into "giant construction projects" and create "tens of thousands of American jobs."
"These are all large-scale energy projects that will increase the United States' power supply capacity," Trump said, "This is about new construction, new manufacturing, and good jobs for American workers."
Both countries stated that they will seek to expand the involvement of Korean companies in projects in Texas, covering equipment supply, engineering and construction, as well as long-term operation and maintenance. The United States also intends to provide opportunities for Korean companies to supply equipment for similar projects in the US, including turbines.
An additional $120 billion has been allocated for the plan to build eight large nuclear reactors in the United States. Of this, $100 billion is for construction costs, and $20 billion is set aside as an emergency reserve.
This nuclear energy agreement was jointly signed by the governments of both countries, as well as Westinghouse Electric, Korea Electric Power Corporation (KEPCO), and Korea Hydro & Nuclear Power Co., Ltd. The plan also proposes that Korean companies may make a potential significant minority equity investment in Westinghouse Electric, with the specific terms depending on commercial negotiations.
