As South Korea and the United States focus their investment projects on the nuclear and energy sectors, domestic industries are experiencing mixed reactions. Companies in heavy industry, such as gas turbine and nuclear equipment manufacturers, are optimistic about potential contracts from the U.S., while the semiconductor sector, which has already committed over 60 trillion won to U.S. investments, is increasingly concerned about reduced subsidies and tariff burdens.
According to industry sources, the South Korean government is in the final stages of negotiations for a $350 billion investment project in the U.S. The first project under consideration involves the construction of a 6.3 GW gas combined cycle power plant and a large nuclear power plant in Encinada, Texas.
Industry experts predict that domestic companies will see expanded business opportunities, particularly in gas turbines, power and nuclear equipment, and plant EPC (engineering, procurement, and construction). Doosan Enerbility is expected to be the biggest beneficiary, as large gas turbines and nuclear equipment are its core business areas.
Doosan Enerbility is the only company in South Korea capable of independently developing and producing large gas turbines for power generation. It has recently secured multiple gas turbine supply contracts in the U.S., demonstrating its recognized product technology and quality. Industry estimates suggest that if 12 to 14 gas turbines are ordered for this project, the potential contract value could reach approximately 3.6 trillion to 4.2 trillion won.
Further benefits are anticipated from subsequent nuclear projects. Doosan Enerbility possesses the capability to manufacture key components such as reactors and steam generators and has established partnerships with U.S. small modular reactor (SMR) companies.
Other power equipment manufacturers, including HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric, are also optimistic about securing new contracts. The construction of power plants will necessitate the establishment of transmission and distribution networks to deliver generated electricity to demand centers like AI data centers, leading to increased demand for transformers and circuit breakers.
Opportunities in the LNG sector are also expected to expand. Samsung E&C is poised to benefit in the areas of liquefaction and gas processing plant design, procurement, and construction (EPC), while the shipbuilding and steel industries are likely to gain from LNG carrier construction and related steel supply.
In contrast, the semiconductor industry is on high alert regarding uncertainties stemming from U.S. investments. Samsung Electronics and SK Hynix are accelerating the construction of local fabs in Texas and Indiana, but negotiations for practical support measures, including delays in semiconductor law subsidies and potential tariff burdens, are proving challenging.
Particularly, the Trump administration has intensified pressure for local production by prioritizing tariffs over subsidies, increasing the burden on companies. Recently, President Trump stated, "If we impose high tariffs without providing subsidies, companies will build factories in the U.S. on their own," indicating a negative stance toward the existing subsidy system.
Domestic companies that have already committed substantial local investments now face the prospect of reduced subsidy benefits alongside the possibility of additional tariffs on domestically produced products.
Heo Jun-young, a professor at Sogang University, noted, "While uncertainties remain regarding tariffs for semiconductors, significant investments by domestic companies in the U.S. are already underway, providing ample future business opportunities. However, it is crucial to see how much of the investment plans discussed between South Korea and the U.S. translate into actual projects." He emphasized the importance of preventing further pressure from the U.S. that could destabilize existing investments and negotiations.
* This article has been translated by AI.
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