South Korea Confirms Texas Gas Plant as First Project Under $350 Billion US Pact

South Korea has confirmed the first project under its $350 billion investment agreement with the United States, selecting a gas-fired power plant in Texas while weighing two further proposals, a lawmaker said on Tuesday.

The announcement came as Industry Minister Kim Jung-kwan briefed legislators behind closed doors on the implementation of the trade deal struck in November last year, which lowered US tariffs on South Korean goods to 15%.

Chung Chin-ook, a lawmaker present at the briefing, said Seoul had chosen the Texas gas project and was also considering investment in two South Korean-designed nuclear reactors as part of a wider nuclear initiative. The confirmed plant, a 6.3-gigawatt facility in Encinal, Texas, is valued at more than $20 billion and would supply electricity to AI data centres and chip factories, according to media reports.

Further options under discussion include the purchase of a 5% to 10% stake in US nuclear technology firm Westinghouse, Chung said. No decision has been taken on participating in the long-delayed Alaska liquefied natural gas project.

The two countries have also been discussing the construction of as many as eight large nuclear reactors in the United States, according to a source briefed on the negotiations. Two would use Korea's APR1400 model, with the remaining six built on Westinghouse's AP1000 design. A separate source said Seoul was seeking to cap annual investment at $20 billion to limit the effect on the won's exchange rate.

Kim told reporters after the briefing that the plans require approval from a US government investment committee and further negotiation with US Commerce Secretary Howard Lutnick. The final announcement on the investment package would be made by President Donald Trump, according to Yonhap.

Lawmaker Bae Jun-young said a "significant" payment would fall due by the end of September following a formal announcement, and Yonhap reported that funds could be remitted within 45 days if requested by Washington. South Korea would provide the full investment for the Texas gas project, with ownership split equally with US partners, the agency reported.

Washington has pressed Seoul over the pace of implementation, particularly in comparison with countries such as Japan, and Trump had threatened higher tariffs as a result. Seoul is also seeking to avoid further friction after Trump criticised South Korea for not assisting over the Iran war and US officials raised concerns about the treatment of US companies, including US-listed Coupang.

President Lee Jae Myung said on Friday that commercial viability had become a sticking point as negotiators shifted from a broad agreement to the details of individual projects, adding that Seoul had sought to ensure "commercially reasonable" investments.

Opposition conservative lawmakers told reporters they had raised concerns about the commercial viability of the investments, but the government said it believed the Texas project would be viable under a 20-year profit-return structure. The lawmakers have demanded closer parliamentary scrutiny. Under South Korean legislation on US strategic investment, the government does not need parliamentary approval but must brief the chamber on projects deemed commercially reasonable. Projects pursued on national security or supply chain grounds despite lacking commercial feasibility would require parliamentary consent.

Hyun Jung Je, a Washington-based senior fellow at the Korea Economic Institute of America, said the first project's announcement would be a meaningful initial step showing both governments had identified an opportunity serving their interests. "Ultimately, the deal will need to be judged by its implementation and results, rather than the commitment itself," she said.

Kim Yong-jin, a management professor at Sogang University, said the Texas plant could help other Korean companies enter the US market with their technologies. A deal to build Korean-designed reactors and secure a stake of around 10% in Westinghouse would also help South Korea protect its intellectual property. "That will be the best-case scenario because there is a high possibility that it will open up markets in Europe and the Middle East as well," he said.