Editorial: Gas power and nuclear plants lead South Korea’s first US investments, but commercial logic must prevail

South Korea’s first proposed US investment project is a $22.3 billion gas-fired combined-cycle power plant in Encinal, Texas. The second project under discussion is a $120 billion plan to build eight nuclear reactors in the United States, including two Korean-designed units.

The government presented the plans at a closed-door ruling party and government meeting on the 7th. They outline how Seoul could deploy about 70% of the remaining $200 billion in planned US investment, excluding shipbuilding, in American energy projects.

Last year, the South Korean and US presidents agreed on a $350 billion investment package that included $150 billion for shipbuilding. The agreement also included a proposal to reduce the US reciprocal tariff on South Korean goods from 25% to 15%.

Texas offers abundant natural gas and rising electricity demand as semiconductor facilities and artificial intelligence data centers expand. Supplying power could provide stable returns, but uncertainty remains. Energy projects require large sums of capital over long periods, making the editorial’s demand for commercial rationality central to the investment plans.