South Korea's Ministry of Economy and Finance published joint South Korean and U.S. plans for three projects under the bilateral strategic investment memorandum of understanding. The governments will formally advance a USD 22.3 billion Texas gas power project, establish a framework covering up to USD 120 billion for eight U.S. nuclear reactors and begin reviewing participation in the Alaska liquefied natural gas project. The plans follow the 2025 bilateral trade agreement and strategic investment memorandum. Project Star, the first strategic investment project, will build a 6,472-megawatt combined-cycle gas power plant in Encinal, Texas, to supply artificial intelligence data centers directly. Initial commercial operations are targeted for 2029 and full operation for 2032, with South Korean companies expected to participate in equipment supply, engineering, construction, operations and maintenance. Project Power provides for two South Korean APR1400 reactors and six Westinghouse AP1000 reactors, supported by up to USD 100 billion in construction funding and USD 20 billion in contingency funding. Specific sites, structures and schedules remain undecided, and each project will require a commercial reasonableness assessment and domestic procedures. The parties are also considering an initial payment of up to USD 10 billion by year-end for long lead items, subject to those conditions, and South Korean companies may pursue an equity investment in Westinghouse. Under Project North, the governments will assess the Alaska LNG pipeline and export terminal before deciding whether commercial and legal conditions support investment. If the project proceeds, the United States plans to provide favorable participation terms for South Korean suppliers, tariff reductions for required equipment including steel, long-term LNG purchase arrangements on economic terms and priority access to the LNG produced. All strategic projects will use a common investment company and wholly owned project vehicles. Profits will remain split 50:50 until South Korea recovers all principal and deemed interest, while a legally binding operating agreement will incorporate the annual USD 20 billion and total USD 200 billion investment limits, tax gross-up protection, information rights and consent rights over material changes.
South Korea's Ministry of Economy and Finance unveils three US strategic investment plans, including USD 22.3 billion power project and up to USD 120 billion nuclear framework
South Korea's Ministry of Economy and Finance published bilateral plans for a USD 22.3 billion Texas power project, a nuclear framework of up to USD 120 billion covering eight reactors and a review of the Alaska LNG project. The Texas project will be the first strategic investment, while specific nuclear and Alaska investments remain subject to commercial and domestic approvals. A common investment structure will preserve a 50:50 profit split until South Korea recovers its principal and deemed interest.