US and SK Formalize Plans for $200B Investment Projects

The United States and South Korea have formalized plans for three major investment projects in a joint statement. The agreements are expected to top $200 billion, with South Korea contributing over $50 billion to an Alaskan liquefied natural gas (LNG) project. U.S. Commerce Secretary Howard Lutnick stated that the two countries will begin reviewing the energy initiative, subject to meeting commercial reasonableness under a memorandum of understanding signed in November last year.

The joint statement also covers $22.3 billion in Korean investment in a gas-fired power plant in Encinal, Texas, and up to $120 billion for eight nuclear reactors in the United States. Industry Minister Kim Jung-kwan expects a return on the plant of at least 15 percent, potentially yielding $45 billion over 20 years.

The nuclear power project could give Korean companies their first opening into the U.S. reactor market. Seoul and Washington will also work to transfer a $10 billion advance payment by the end of the year, subject to each side's legal requirements.