'First US Investment': Texas Power Plant Project ... "Up to USD 4.5 Billion Recoverable Over 20 Years"

Government: "First Investment Project Secures Commercial Viability"

Closed-Door Report to National Assembly's Strategy and Finance, and Industry Committees

No Separate Parliamentary Approval Required

Updates Also Provided on US Nuclea

The government has selected a combined-cycle power plant project in Texas as the first initiative under the Korea-U.S. Strategic Investment Partnership, which is worth a total of 350 billion dollars. The government assessed that the project has "commercial viability," expecting that up to 45 billion dollars could be recovered over the next 20 years. As a result, instead of requiring parliamentary approval, only a report was submitted to the relevant standing committees.

On the 22nd, the government briefed ruling and opposition lawmakers who are members of the National Assembly’s Planning and Finance Committee and the Industry, Trade, and Small and Medium-sized Enterprises Committee in a closed-door meeting. The first project, a combined-cycle power plant in Texas, was reported, and the government also explained the progress of upcoming projects under consideration for the second and third rounds, which include nuclear power plant construction involving an equity investment in Westinghouse in the United States, as well as an Alaska development project.

According to the Korea-U.S. Strategic Investment Special Act, the government can proceed with investment projects it deems commercially viable by simply reporting to the National Assembly, without requiring separate parliamentary approval.

Kim Sungwon, chairman of the Industry, Trade, and Small and Medium-sized Enterprises Committee, is striking the gavel at the plenary session. Photo by Yonhap News Agency

Kim Sungwon, chairman of the Industry, Trade, and Small and Medium-sized Enterprises Committee, told reporters immediately after the briefing, "The government decided to invest 22.3 billion dollars in the Texas combined-cycle power plant, and expects to recover between 43 billion and 45 billion dollars over the next 20 years, concluding that the project is commercially viable."

However, the People Power Party raised concerns that, since the project is still at the development stage, variables may arise in terms of profitability and the process of recouping the investment. Chairman Kim stated, "Although the government explained that commercial viability has been secured, (from the perspective of the opposition) significant concerns were expressed," adding, "We requested that future negotiations with the U.S. be conducted in a way that best serves the national interest."

The timing of the report to the National Assembly also drew criticism from the opposition. Bae Joon-Young, the People Power Party's secretary on the Planning and Finance Committee, remarked, "Parliamentary deliberations should be sufficiently conducted and all impacts carefully examined, yet the report was only submitted a day before the official announcement," adding, "I have no choice but to express regret over the way this is being presented to us as a fait accompli." He also stated that the opposition would scrutinize future investment remittances and follow-up procedures on the parliamentary level.

Oh Ki-Hyung, secretary of the ruling Democratic Party on the Planning and Finance Committee, stated, "We received information from the government about the first project and its commercial viability, and since the project is still in its early stages, I conveyed the need for thorough monitoring going forward." Regarding the opposition's criticism, he added, "I understood their remarks to mean that commercial viability should be assessed even more strictly," noting that "there could be various variables affecting the scheduling of the briefings."

After reporting to the National Assembly, the government plans to further specify the details of the project through consultations with the Korea-U.S. Investment Committee. The timing of the official announcement by both governments has not been disclosed.

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