Factbox-Texas power plant, nuclear projects under discussion in South Korea’s US investment package

South Korea and the United States are negotiating details of a $350 billion investment package set to be rolled out under a trade agreement signed last year. This agreement reduced US tariffs on South Korean goods to 15%, and currently, $150 billion is allocated for shipbuilding, while the remaining $200 billion is earmarked for strategic investments.

Among the projects under discussion are a 6.3 gigawatt combined-cycle gas power plant in Encinal, Texas. This plant aims to provide electricity for AI data centers and semiconductor plants in Texas. The project is expected to be developed in stages, starting with 1.4 gigawatts of gas turbine facilities, followed by the addition of 4.9 gigawatts of combined-cycle facilities.

According to media reports, talks are also underway for up to eight large nuclear reactors in the US. If constructed, these reactors could account for a significant portion of the investment package. South Korean and US negotiators are considering six reactors using technology from Westinghouse and two utilizing a South Korean design. If successful, the South Korean-designed reactors would mark the first of their kind in the United States.

Additionally, Seoul is exploring the possibility of acquiring a stake in US nuclear company Westinghouse. Initially, South Korea sought a 15% stake for a board seat, but the US only offered 5% to 10%. The value of the potential investment, contingent on Westinghouse's valuation before an anticipated initial public offering, could range from $15 billion to $20 billion, making a 15% stake worth $2.25 billion to $3 billion.

Another area of negotiation is South Korea's participation in the Alaska liquefied natural gas project, a $44 billion pipeline and export scheme championed by US President Donald Trump. South Korea has approached this cautiously, with Industry Minister Kim Jung-kwan describing it as a high-risk business. Seoul has sought to include the Alaska LNG project in the US investment memorandum without a binding commitment.

Lastly, Washington is seeking South Korean support for reprocessing spent nuclear fuel, a proposal linked to South Korea's nuclear-powered submarine program and fuel procurement. The US has proposed processing 4,000 tons of spent nuclear fuel, a plan that aligns with South Korea's push for nuclear-powered submarines and fuel security.