South Korea has agreed to invest $350 billion in the United States following pressure from President Donald Trump, who used tariffs as leverage. The decision comes despite initial resistance from Seoul, which saw the U.S. as its largest market and a critical ally. The investment will focus on three major projects: nuclear power, Alaska liquefied natural gas (LNG), and Texas gas combined cycle power generation.
Trade Minister Kim Jung-kwan expressed caution about the Alaska LNG project, noting that its business feasibility had not yet been secured. However, private sector voices argue that the investment presents an opportunity, particularly in the nuclear power plant market. The deal has lifted some export restrictions, allowing Korean companies to explore broader participation in the U.S. nuclear sector, including potential stakes in Westinghouse.
Private equity funds in Korea are already making behind-the-scenes moves to acquire shares in Westinghouse and expand investments in individual nuclear projects. The growing demand for 24/7 power supply in the AI era is driving interest in nuclear energy as an essential resource. Similarly, the Alaskan LNG project has seen the U.S. government upgrade it to a federal project, opening avenues for preferential purchase rights through future negotiations.
Minister Kim met with U.S. Commerce Secretary Howard Rutnick and attended the 9/11 memorial event to safeguard Korean interests. Analysts suggest that South Korea should view this investment as a long-term strategy rather than a mere response to tariff pressures, emphasizing the need to secure energy security and new market opportunities for Korean companies.