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By Joyce Lee
Sept 18 (Reuters) – South Korea and the United States are finalising the implementation of Seoul’s pledged $350 billion investment package under a trade deal struck last year that lowered US tariffs on South Korean goods to 15%.
Out of the $350 billion, $150 billion is earmarked for shipbuilding with details still being worked out for the remaining $200 billion in strategic investments.
Below are details of the projects under discussion, according to media reports and a South Korean lawmaker, although the country’s industry ministry has said details have not been set.
TEXAS GAS-FIRED POWER PLANT
The first project is a combined-cycle gas power plant in Encinal, Texas.
The 6.3 gigawatt project aims to supply electricity to AI data centres and semiconductor plants in Texas.
To reduce risk, the project is expected to be developed in stages, starting with 1.4 GW of gas turbine facilities, before later adding 4.9 GW of combined-cycle facilities, according to multiple South Korean media outlets, including JoongAng Ilbo.
The two sides agreed on investment of around $22.3 billion, and the use of a bilateral special-purpose investment vehicle going forward, the reports said.
EIGHT NUCLEAR REACTORS, WESTINGHOUSE STAKE
Seoul and Washington are discussing the construction of up to eight large nuclear reactors in the United States.
At about $15 billion per reactor, the nuclear sector could account for a significant portion of the investment package, according to the Korea Economic Daily newspaper and other outlets.
The two countries are negotiating for six reactors to use technology from US company Westinghouse and two using a South Korean design.
If built, the South Korean-designed units would be the first Korean reactors in the United States.
Separately, Seoul is negotiating to acquire a stake in US nuclear company Westinghouse. South Korea sought around a 15% stake to gain a board seat, but the US offered only 5% to 10%, media reports said.
The value of the investment would depend on Westinghouse’s valuation ahead of a planned initial public offering, but could amount to $15 billion to $20 billion, implying a 15% stake could be worth $2.25 billion to $3 billion, according to Korea Economic Daily.
Westinghouse’s stock is currently held by Canadian asset manager Brookfield and its partners with 51% and Canadian uranium miner Cameco with 49%.
ALASKA LNG PROJECT
Another project under discussion is South Korean participation in the Alaska liquefied natural gas project, a long-stalled pipeline and export scheme championed by US President Donald Trump.
The Alaska LNG development estimated to be worth $44 billion would transport gas drilled from northern Alaska via a 1,300-km (807 miles) pipeline to Nikiski, for export to Asian countries.
South Korea has approached the plan cautiously and Industry Minister Kim Jung-kwan told parliament last November that Alaska LNG was a “high-risk business”.
South Korean media has said Seoul has sought to include the Alaska LNG project in the US investment memorandum without a binding commitment.
NUCLEAR FUEL REPROCESSING
A fourth potential investment concerns Washington seeking South Korean support on reprocessing spent nuclear fuel, according to South Korean ruling party lawmaker Yoon Hu-duk.
The US is linking this proposal to South Korea’s push to build nuclear-powered submarines and secure fuel, Yonhap news agency said.
The United States has proposed a project involving processing 4,000 tons of spent nuclear fuel, the lawmaker said.
At a leaders’ summit last November, the two countries agreed on a joint factsheet in which Washington approved South Korean plans to build a nuclear-powered submarine and to work closely with Seoul on fuel procurement.
CARBON CAPTURE
A fifth potential project involves carbon capture, utilisation and storage (CCUS), according to South Korean lawmaker Yoon.
This is an area where major US energy firms have already attracted large-scale investment.
Reporting by Joyce Lee Editing by Ed Davies and Shri Navaratnam
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