The inaugural project under Korea's large-scale investment agreement with the United States has been confirmed: a gas-fired power plant valued at over $20 billion is planned for Texas, with its electricity output primarily earmarked for local AI data centers and semiconductor fabrication facilities.

On September 22, it was reported that Seoul has verified this gas plant as the first undertaking under the bilateral investment deal, while simultaneously engaging in further discussions with Washington regarding nuclear power and liquefied natural gas ventures. The Korean government indicated that the investment still requires approval from the U.S. Committee on Foreign Investment, additional negotiations with U.S. Commerce Secretary Howard Lutnick, and a final announcement by President Donald Trump.

According to earlier reporting, South Korean President Lee Jae-myung held a press conference on November 14 at the Yongsan presidential office, unveiling the "Joint Fact Sheet" that finalized tariff and national security consultation outcomes between the two nations. The document released that day showed both leaders endorsing the "Korea Strategic Trade and Investment Agreement" announced in July, confirming that the pact includes $150 billion in Korean investment in U.S. shipbuilding, along with an additional $200 billion commitment under the Strategic Investment Memorandum of Understanding.

The confirmation of this initial project signals that the massive investment pledges under the trade deal are transitioning into concrete execution. However, domestic debate in Korea over the project's commercial viability persists, with opposition lawmakers also calling for enhanced parliamentary oversight.

First project unveiled: Texas gas plant to supply AI data centers

According to reports, the confirmed Korean project is situated in Encinal, Texas, with a generating capacity of 6.3 gigawatts and a valuation exceeding $20 billion. The electricity produced will primarily serve local AI data centers and chip plants.

South Korean lawmaker Chung Chin-ook stated following a briefing by the industry minister that Korea will provide full financing for the project, with each side holding a 50% equity stake alongside its American partner. Lawmaker Bae Jun-young noted that once the project is formally announced, a "substantial" payment must be delivered by the end of September; if the U.S. side requests expedited transfer, funds could be remitted within 45 days.

Kim Yong-jin, a management professor at Sogang University, believes the Texas plant project could serve as a gateway for Korean enterprises to enter the U.S. market, potentially attracting more Korean firms to bring technology and capital for investment in America.

Beyond the gas plant, Korea is also advancing an even larger nuclear power investment initiative. Reports citing informed sources indicate that discussions are underway to construct up to eight large-scale nuclear reactors in the United States, with two using Korea's domestically designed APR1400 reactor type and the remaining six utilizing Westinghouse's AP1000 design.

Chung Chin-ook added that Korea is also exploring the acquisition of a 5% to 10% stake in Westinghouse. As for participation in the long-shelved Alaska liquefied natural gas project, no decision has been made yet. Kim Yong-jin suggested that advancing Korea's own reactor design and securing roughly 10% of Westinghouse would help Korea protect related intellectual property while expanding into European and Middle Eastern markets.

Ongoing Trump pressure and commercial feasibility take center stage

This investment arrangement stems from the trade agreement reached between the two countries last November. Under that deal, Washington agreed to reduce tariffs on Korean goods to 15%, yet U.S. officials have continuously criticized the pace of Korean investment, with Trump having also threatened to raise tariffs.

As negotiations shift from framework agreements to specific projects, Korea has grown more concerned about the commercial returns on its investments. President Lee Jae-myung stated last Friday that ensuring "commercial rationality" for projects has emerged as a key point of divergence in current talks. An informed source told reporters that Korea is seeking to cap annual investment in the U.S. at $20 billion to mitigate pressure on the Korean won's exchange rate from large-scale capital outflows.

Domestic skepticism over project returns is also intensifying. Opposition lawmakers are demanding stronger parliamentary oversight, while the Korean government maintains that the Texas gas plant is commercially viable within its 20-year profit cycle. Under Korea's Strategic Investment in the United States Act, projects deemed commercially rational do not require parliamentary approval; however, if a project lacks commercial feasibility yet proceeds on grounds of national security or supply chain stability, legislative consent becomes mandatory.

Hyun Jung Je, a senior fellow at the Korea Economic Institute of America in Washington, observed that the confirmation of the Texas project demonstrates both sides are identifying mutually acceptable investment opportunities, though the ultimate test of this investment pact will come through the implementation and actual outcomes of individual projects.