South Korea's six major economic groups welcomed the announcement of strategic investment projects by the U.S. and South Korean governments. They believe that the realization of investment cooperation defined in last year's trade agreement will reduce trade uncertainties and expand business opportunities for domestic companies in the U.S.
On October 1, the economic groups issued a joint statement praising the efforts of both governments to solidify mutually beneficial economic cooperation despite challenging trade conditions.
On the same day, the U.S. and South Korean governments announced plans for three strategic investment projects, including a gas-fired power plant in Texas, a framework for cooperation on U.S. nuclear power, and a liquefied natural gas (LNG) project in Alaska. These initiatives are follow-ups to the U.S.-Korea trade agreement signed in July 2025 and a strategic investment memorandum of understanding concluded in November of the same year.
The business community views this announcement as a pivotal step in moving U.S. investments from the agreement phase to individual projects. The economic groups stated, "This is significant as it reaffirms the commitment to implement the U.S.-Korea trade agreement and translates it into actual investment projects. We expect that trade uncertainties between the two countries will be alleviated, enhancing predictability for our companies' business environments."
The first project, the Texas Encinada gas-fired power plant, has a total investment of $22.3 billion. It will have a capacity of 6,472 MW and is designed to supply power directly to a nearby AI data center. The first phase of commercial operation is set to begin in 2029, with full operation targeted for 2032.
The business sector is also focusing on the potential for domestic companies to participate in energy infrastructure projects. As the power plant and nuclear and LNG projects gain momentum, opportunities for related industries, such as design, equipment, and construction, to enter the U.S. market may also increase.
The economic groups stated, "If our companies expand their participation in the U.S. market, it will contribute not only to the entry of related industries and an increase in exports to the U.S. but also to the industrial competitiveness and stability of supply chains between the two countries."
They emphasized the importance of commercial viability for subsequent projects, expressing hope that these initiatives will lead to tangible business outcomes based on commercial rationality and mutual benefits. They also expressed a desire for the U.S. and South Korea to further solidify their long-term and reliable industrial and supply chain partnership.
The business community is committed to collaborating to ensure that the U.S. investment projects lead to the expansion of domestic companies' operations. The economic groups stated, "We will actively cooperate to ensure that this investment deepens economic cooperation between the two countries, expands our companies' business in the U.S., and revitalizes our economy."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.