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Trade, Industry and Energy Minister Kim Jung-kwan. / Park Sang-sun

The Encinal combined-cycle gas power plant in Texas has been confirmed as the inaugural project under South Korea's $200 billion investment package in the U.S. Follow-up projects reportedly include a $120 billion initiative proposed by the U.S. to build eight large nuclear power reactors, alongside the Alaska LNG project. The government's plan is to lock in the initial project first while continuing negotiations on the second and third initiatives.

Minister of Trade, Industry and Energy Kim Jung-kwan delivered the government's first report on the U.S. investment plan to the National Assembly on the 22nd. Both ruling and opposition lawmakers voiced agreement that commercial rationality must be thoroughly verified given the commitment of public funds, stressing that the briefing should not be treated as a mere rubber-stamp formality to execute the investment.

Under the Korea-U.S. Strategic Investment Act, the government is required to report to relevant parliamentary standing committees before opening formal consultations with the U.S. on U.S.-bound investments. In line with this mandate, closed-door briefings were held before both the Trade, Industry, Energy, SMEs, and Startups Committee and the Economy and Finance Committee. Deputy Prime Minister and Minister of Economy and Finance Lee Hyoung-il attended the Economy and Finance Committee, while Minister Kim appeared before the Trade and Industry Committee.

During the committee session, Minister Kim stated, "I am reporting on one project that the government has formally decided to pursue, as well as implementation plans for two additional projects that reflect the mutual interests of both countries, though specific decisions to move forward have yet to be finalized."

Minister Kim confirmed the Encinal gas-fired combined-cycle power project in Texas as the first investment project in the U.S. On the key point of contention regarding the timing of capital remittances, the timeline was reportedly outlined as within 45 days of signing the agreement.

Regarding the widely anticipated stake acquisition in U.S. nuclear firm Westinghouse, the government presented a target range of 5% to 10% rather than a fixed figure. This reflects ongoing consultations with the U.S. on an exact equity percentage, weighing factors such as resolving intellectual property disputes and advancing global cooperation on nuclear reactor exports. The government plans to accelerate discussions on the nuclear project to iron out remaining differences.

The government also reaffirmed its policy cap ensuring that annual investments in the U.S. do not exceed $20 billion. Within the mutually agreed boundaries of $200 billion in total and $20 billion annually, capital will be deployed sequentially after assessing the feasibility and profitability of each individual project.

Minister Kim remarked, "The government has engaged in rigorous negotiations with the U.S. to advance commercially viable projects. We must approach U.S. investments from the standpoint of national interest, ensuring they go beyond mere capital deployment and recovery to expand opportunities for our domestic enterprises in the U.S. market and serve as a springboard for global expansion."

                                                                                                             Kim So-young