(ATTN: UPDATES throughout with details)
SEOUL, Sept. 22 (Yonhap) -- South Korea has chosen the construction of a large-scale gas-fired power plant in Texas as its first investment project under its US$350 billion investment commitment to the United States, parliamentary sources said Tuesday.
The Ministry of Trade, Industry and Resources reported the plan to the parliamentary trade committee during a closed-door session, the sources said, following months of negotiations to execute a South Korea-U.S. joint fact sheet (JFS) on South Korean investment pledges in return for lower U.S. import tariffs.
As the second and third projects, the ministry said it has drawn up plans for the construction of eight large-scale nuclear reactors in the United States and for a liquefied natural gas project in Alaska, according to the sources.
Industry Minister Kim Jung-kwan briefs the parliamentary trade committee on the details of South Korea's investment plans for the United States at the National Assembly in Seoul on Sept. 22, 2026. (Yonhap)
The JFS was adopted after a summit between President Lee Jae Myung and U.S. President Donald Trump last year. It outlines Seoul's investment pledge, including $150 billion for shipbuilding cooperation, as well as security arrangements related to South Korea's push to develop nuclear-powered submarines and secure rights to enrich uranium and reprocess spent nuclear fuel.
The power plant in Texas would be built in the city of Encinal with a total installed capacity of 6.3 gigawatts, committee officials said, amid the electricity demands of a growing number of semiconductor plants and artificial intelligence (AI) data centers in the state.
The project is valued at $22.3 billion, with the government estimating revenues of up to $45.4 billion over the next 20 years to more than recover the principal and interest, the officials said.
Unlike the first project, the second and third projects will need to undergo further consultations with the U.S., especially as Washington has reportedly balked at Seoul's interest in securing a stake of around 20 percent in U.S. energy firm Westinghouse to build the eight nuclear reactors.
Industry Minister Kim Jung-kwan reportedly told lawmakers the two sides are in talks over a 5-10 percent stake, which he said would be enough to give South Korea voting rights.
"The government has been negotiating intensely with the U.S. in order to pursue commercially viable projects," the minister was quoted as saying. "We needed to approach this in a balanced manner from the standpoint of the national interest so that the investments in the U.S. would expand our businesses' entry into the U.S. market and establish a foothold to enter the global market."
Kim also reportedly emphasized the government's position that no investment will proceed if it exceeds the $200 billion limit.
He did not offer a timeline for when a memorandum of understanding (MOU) will be signed to finalize the project, saying additional talks are needed with U.S. Commerce Secretary Howard Lutnick later in the day.
A committee member said the MOU will likely be announced personally by Trump at a politically expedient time ahead of the U.S. midterm elections in November.
hague@yna.co.kr
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