As South Korea approaches its first major investment agreement with the United States, the focus is on constructing nuclear power plants and natural gas power facilities to support artificial intelligence (AI) infrastructure, according to a report by the Wall Street Journal on September 10, citing sources. This initiative is expected to exceed $100 billion (approximately 134 trillion won) and could serve as a significant 'gift' to President Donald Trump, who has expressed dissatisfaction over delays in South Korean investments.
Negotiations between the two countries are reportedly in the final stages, with plans for the construction of up to eight nuclear power plants and a natural gas power plant in Texas. Sources indicate that an announcement could come as early as next week.
The nuclear power project aims to supply electricity for AI data centers and could potentially exceed several tens of billions of dollars, possibly reaching $100 billion. However, the timing and locations for construction have not yet been finalized. Some sources suggest that the nuclear plants may be built on government-owned land in the U.S. and could utilize Westinghouse's AP1000 reactors.
The investment in the Texas natural gas power plant is estimated at around $20 billion, also intended to provide power for AI data centers. Combined, the investments in nuclear and gas facilities are expected to surpass $100 billion.
If negotiations proceed as planned, South Korea could transfer an initial investment of over $2 billion to the U.S. by the end of this month, sources say.
This investment is part of a tariff agreement reached last year between the U.S. and South Korea, where the U.S. agreed to reduce mutual tariffs from 25% to 15%, while South Korea committed to investing $350 billion in the U.S. (with $150 billion in shipbuilding and $200 billion in key industries). South Korea's annual investment was capped at $20 billion.
As South Korea's first investment project in the U.S. nears confirmation, it is expected to be a significant development for President Trump, who has voiced frustration over the delays in South Korean investments.
Since the tariff agreement was reached over a year ago, the Trump administration has expressed dissatisfaction with South Korea's lack of announcements regarding investment projects. The Financial Times reported that if South Korea does not make a timely decision, it could provoke Trump's 'anger.'
One U.S. source stated that South Korea needs to "hurry" or risk inciting Trump's frustration. Another source noted that Trump's criticism of South Korea for not cooperating in the U.S. war against Iran was partly rooted in dissatisfaction over the investment delays.
Jennifer Lee, a partner at the Washington-based consulting firm Asia Group, remarked that "significant frustration has built up within the U.S. government," especially in comparison to Japan, which has been making consecutive investment announcements.
Japan had promised a $550 billion investment in the U.S. in exchange for reducing tariffs from 25% to 15% last July. Since then, Japan has rapidly announced specific projects, including a gas power plant in Ohio and small modular reactors in Tennessee and Alabama.
In November of last year, President Yoon Suk Yeol explained to the public that investments would only be made in commercially viable projects. Professor Min Jeong-hoon of the Korea National Diplomatic Academy stated, "Companies will not invest if there is no business viability. South Korea has to be cautious," adding that while Trump desires quick results, the positions of both sides differ.
Additionally, the U.S. Immigration and Customs Enforcement's (ICE) raid on Hyundai Motor and LG Energy Solution's battery plant in Georgia last September has also been cited as a factor that has made South Korean companies hesitant to invest in the U.S. President Yoon expressed concern that this incident could make South Korean firms "very reluctant" to invest in the U.S.
Troy Stangarone, senior director at the Korea Economic Institute, emphasized the urgency for South Korea to announce its initial investment project, warning that further delays could create the perception that the Trump administration is trying to evade its commitments. He also noted that Trump's recent mention of South Korea's deployment to the Strait of Hormuz might be aimed at promoting U.S. investment, but actual deployment may not resolve investment issues.
* This article has been translated by AI.
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