South Korea nears $100B deal to build nuclear plants in U.S.

South Korea is in the final stages of negotiating a major energy investment in the United States worth more than $100 billion, a deal that would mark the first concrete outcome of the sweeping trade agreement the two countries struck last October, the Wall Street Journal News Corp ↘ 0.42% reported on Thursday.wsj

The arrangement envisions Seoul financing the construction of up to eight nuclear power plants on U.S. government-owned land, along with a roughly $20 billion natural gas power plant in Texas designed to supply electricity to artificial intelligence data centers. If the deals proceed as planned, South Korea is prepared to make an initial payment exceeding $2 billion by the end of September.qz+3

Nuclear Ambitions and Reactor Designs

The first reactors would use the AP1000 design from Westinghouse Electric Cameco Corporation ↘ 1.61%, with some subsequent units potentially built using the APR1400 design from South Korea's state utility KEPCO ↘ 1.72%. The nuclear component alone could reach tens of billions of dollars, with the overall figure potentially surpassing $100 billion.news.sbs+3

An agreement on both the nuclear and gas projects could come as early as next week, with negotiations now in their final stages, according to the Journal's sources. However, details and timing remain subject to change as talks continue. South Korea's Trade Ministry said no decisions have been finalized, and the White House declined to comment.qz+1

Trade Deal Under Pressure

The investments stem from the trade deal President Trump and South Korean President Lee Jae Myung signed last October, under which Seoul pledged $350 billion in U.S. manufacturing investments and $100 billion in American energy purchases in exchange for Washington capping tariffs on Korean imports at 15 percent. South Korean lawmakers approved the pact in March.rigzone+1

Progress had stalled for months, prompting Trump to threaten in January to restore higher tariffs. Bloomberg reported on Tuesday that South Korea had already identified the Texas gas-fired power project — located in Encinal with a planned capacity of 6.3 gigawatts — as the first investment under the deal.qz+1

Broader Context

Of the $350 billion commitment, roughly $150 billion is earmarked for U.S. shipbuilding, with the remainder directed toward semiconductors, nuclear energy, and biopharmaceuticals. South Korea's annual investment is capped at $20 billion under the agreement. In a statement Tuesday, Seoul's Industry Ministry said total investment "will not exceed $200 billion under any circumstances," pushing back on reports that Washington had requested commitments beyond the original $350 billion.news.jkn+1

The deal follows a period of friction between the allies. The United States scaled back joint military exercises with South Korea last month over Seoul's lack of support in the Iran conflict, adding urgency to Seoul's efforts to deliver on its economic pledges.thenews