South Korea's Texas LNG Power Plant Hit with Last-Minute Snags Amid Tariff Pressure

South Korea's first major investment project in the US is facing last-minute snags amid pressure from the US administration to expedite the deal. The project, a liquefied natural gas (LNG) combined-cycle power plant in Texas with an initial capacity of 6.3GW, was expected to be announced as early as the end of this month.

However, Minister of Trade, Industry and Energy Kim Jung-kwan departed for Washington on August 16 after a US Commerce Department letter warned that if investment is not expedited, agreed reciprocal tariffs (15%) will be raised. The minister said, 'We've held video conferences and working-level contacts, but the situation requires a comprehensive review.'

The South Korean government secured a reduction in reciprocal tariffs from 25% to 15% last year in exchange for a $350 billion US investment commitment.