[Econ & Biz] First U.S. investment project: How far have talks come?

대미투자 1호 프로젝트 가시권, 막판 쟁점은?

Seoul and Washington appear to be nearing a deal on the first project under Korea's U.S. investment plan.
With an announcement expected soon, our economic correspondent Kim Jun-hong joins us to break down the key issues in the final talks.
Welcome Jun-hong.

Good evening, Dami.

The announcement was initially expected this week, but it now appears to have been delayed, what happened?

That's right.
The government has delayed a planned briefing to the National Assembly on its investment talks with the U.S.
The Industry Ministry was due to brief lawmakers today, but the meeting has now been rescheduled for next week at the Ministry's request.
Officials said talks with Washington are still underway, with more time needed to narrow the remaining differences.
Seoul says it will continue negotiations with its national interests as a priority.
An official announcement of the first investment project was expected to be announced on Friday, following a briefing to lawmakers.
Industry Minister Kim Jung-kwan also traveled to the U.S. last week for final-stage negotiations.

"We've come close to an agreement on many issues, but there are still points to work out. In any negotiation, it's not over until the final deal is signed."

Talks appear to need more time, with the investment MOU signing now also likely to be delayed.


So, what projects are being considered for the first round of investment?

Nothing has been officially announced yet, but what's furthest along is a natural gas power project in Encinal, Texas.
The plan calls for a 6-point-3 gigawatt facility to meet growing electricity demand from AI data centers and advanced chip facilities across Texas.
Initially estimated to have a budget of 20 billion U.S. dollars, the project is now reportedly being discussed at around the 22 billion mark.

A potential follow-up project is a 120 billion-dollar plan to build eight large nuclear reactors in the U.S.
That plan would include six reactors from U.S. nuclear firm Westinghouse and two Korean-designed reactors.
Another project Washington wants Korea to invest in is the 67 billion-dollar Alaska LNG project.
U.S. President Donald Trump has actively promoted the project to leaders around the world, but potential investors have remained cautious due to high costs and logistical challenges.


Then what's keeping the two sides from reaching a final deal?
And what does Korea need to secure in the final talks?

Differences remain over the terms of the projects we just looked at.
There are three main sticking points.
For the Texas gas power plant, Korea wants guarantees on power demand and Korean supplier participation, while the U.S. is reluctant to put them into the contract.
On nuclear power, a key issue is the early inclusion of Korean-designed reactors since their entry into the U.S. market could challenge America's own leading model.
Westinghouse's investment is another sticking point.
Korea is seeking around a 15 percent stake with voting rights, while the U.S. favors 5 to 10 percent without voting rights.

Another key issue is how profits and losses are handled.
The U.S. reportedly wants each project treated separately, rather than pooling returns across projects.
That could limit Korea's ability to offset losses in one project with profits from another.
The government has stressed that any deal must make commercial sense for both sides.
Experts say there is good reason to take a cautious approach.

"The first project will set an important precedent. So even if it takes more time, Korea needs enough information on the project's outlook and costs, and a process that ensures its views are heard. And since the joint fact sheet covers broader areas beyond investment, including security, the decision needs to be made carefully with the bigger picture in mind."

Meanwhile, Foreign Minister Cho Hyun said Thursday the delay was more about domestic procedures than differences with Washington.
He said Seoul will make clear what it can and cannot accept, with attention now turning to how those positions will be reflected in the final deal.

We'll have to wait for the final deal to take shape. Thank you, Jun-hong.

Thank you.

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2026-09-17, 20:00 (KST)