By Joyce Lee and Heejin Kim
SEOUL, Sept 22 (Reuters) – South Korea’s industry minister said on Tuesday that the government had selected the first project to pursue under its $350 billion investment deal with the US and would brief lawmakers on two others that were under consideration.
Seoul had not yet decided whether to proceed with the two others, but they reflect the “interests of both countries”, Kim Jung-kwan told lawmakers, without elaborating.
The briefing is a key step as Seoul and Washington seek to finalise implementation of a trade deal that cut US tariffs on South Korean goods to 15%.
Lawmakers have described the briefing as one of the final steps before the two allies can agree terms and make a formal announcement.
The investment commitment was made under a trade agreement struck last year under which Seoul pledged to invest in US manufacturing in exchange for lower tariffs on imports from South Korea.
Of the $350 billion package, $150 billion has been earmarked for shipbuilding. Details for the remaining $200 billion in strategic investments have yet to be finalised.
South Korea’s Industry Ministry would brief lawmakers on a gas-fired power plant in Encinal, Texas, as the first potential project in the package, a source familiar with the negotiations said.
According to South Korean media reports, the 6.3-gigawatt gas-fired power plant valued at $22.3 billion is intended to supply electricity to AI data centres and chip factories.
Seoul and Washington are also discussing construction of as many as eight large nuclear reactors in the United States, media reports said.
South Korea has also explored buying a minority stake in the US nuclear firm Westinghouse, while the possibility of participating in a long-delayed Alaska liquefied natural gas project has been raised.
The source familiar with the negotiations said that there was no agreement yet on a Westinghouse investment and that South Korea was seeking to cap annual investment at $20 billion to limit the impact on local currency markets.
The briefing to the National Assembly’s trade committee was postponed last week while negotiators sought to bridge differences between US and South Korean demands, officials and media reports said.
President Lee Jae Myung said on Friday that commercial viability had become a sticking point as negotiators moved from broad agreement to the details of individual projects.
Lee said Seoul had sought to ensure the agreement referred to “commercially reasonable” investments, amid questions over returns, profit-sharing and how losses from unprofitable projects would be handled.
Opposition lawmakers have demanded closer parliamentary scrutiny, warning that Seoul could be exposed to disproportionate financial risks in energy projects.
Kim Sung-won, chair of the trade committee, said on Monday concerns had grown over terms for nuclear and power generation investments.
Further delay in the implementation of the trade deal risks renewed friction with Washington. US President Donald Trump threatened South Korea with higher tariffs earlier this year over the pace of implementing the agreement.
Lee travelled to the United States on Monday to attend the UN General Assembly, where he is seeking meetings with Trump and other leaders.
(Reporting by Joyce LeeEditing by Ed Davies)
