Kim Jeongkwan Heads Straight to the U.S. from France... Final Coordination Underway for First Major U.S. Investment Project

Second Visit to the U.S. This Month... Focus on Project No. 1 Negotiations

Adjusting Investment Scale and Methods for Texas Gas Power Plant, Nuclear Energy Projects

Report to National Assembly Scheduled After Return

Yonhap News Agency

Minister of Trade, Industry and Energy Kim Jeongkwan headed to the United States immediately after accompanying President Lee Jaemyung on his state visit to France. As the final stage is underway for the selection of the first project in the $350 billion U.S. investment plan—a central issue in the Korea-U.S. tariff negotiations—Minister Kim is expected to finalize details with the U.S. side, including investment targets, scale, and timing of execution.

According to the Ministry of Trade, Industry and Energy on September 10, Minister Kim will travel to the U.S. via Belgium after completing his visit to France with President Lee (September 6-9). From September 10 to 12 (local time), he will be in the United States carrying out work related to U.S. investment. The Ministry is not disclosing detailed local schedules but is expected to engage with U.S. government officials, including U.S. Secretary of Commerce Howard Lutnick.

As the government has announced that it will confirm the first investment project within this month, focused discussions are expected during this visit on the scale of investment and means of capital deployment for Project No. 1. Matters to be settled by the government include not only specific investment destinations but also the size of the initial investment and the timing of remittance.

Currently, the leading candidate for the first project is the construction of the Encinal gas combined-cycle power plant in Texas. This project aims to build a gas-fired power plant with a capacity of about 6.3GW in Texas, where demand for electricity has surged with the establishment of advanced semiconductor plants and artificial intelligence (AI) data centers. As it has been reported that there were disagreements over project costs between South Korea and the U.S., the outcome of last-minute negotiations is drawing attention.

Not only the first project, but also subsequent investment projects are key variables in these negotiations. The U.S. side is said to have suggested allocating a significant portion of $200 billion of strategic investment toward nuclear power plant construction. While the construction of up to eight large-scale nuclear power plants in the U.S. has been mentioned as a candidate, applying the Korean-designed APR1400 reactor to some of these projects is reportedly under discussion. However, the Ministry has stated that “various negotiations are underway regarding nuclear power projects, but specific details have not yet been determined.”

Whether the Alaska liquefied natural gas (LNG) project will be included in the U.S. investment package is also attracting attention. While the U.S. has requested Korea’s participation, there are considerable concerns over the business feasibility due to the substantial initial investment outlay and the long period required to recoup the investment. The government, for its part, has stated that concrete investment destinations or timing have not been confirmed, and is maintaining a cautious stance.

Minister Kim has ramped up U.S. investment coordination with an intense travel schedule between the U.S. and Europe this month. He visited the U.S. from September 1 to 4, attending the G20 Innovation Ministers’ Meeting and participating in events such as the investment reporting ceremony, before returning to Korea. Only two days later, on September 6, he accompanied President Lee on the French state visit. After completing the European schedule, he is now making his second visit to the U.S. this month.

The upcoming schedule is also demanding. After his current U.S. schedule, Minister Kim is expected to return home and on or around September 17 report to the National Assembly regarding the first U.S. investment project. If the detailed coordination between Korea and the U.S. is completed, it is anticipated that as early as September 18, a final signing of a memorandum of understanding (MOU) related to the investment will take place. A Ministry official said, “Consultations between Korea and the U.S. on the investment project are ongoing,” adding, “We will provide explanations on specific investment targets, amounts, and timing once discussions are finalized and related procedures are completed.”

This content was produced with the assistance of AI translation services.