Westinghouse voting rights could ease nuclear exports, while South Korea remains cautious on Alaska LNG

South Korea is preparing an initial transfer of about $2.2 billion in investment to the United States while weighing whether a stake in Westinghouse could improve its position in future nuclear exports.

The government is reportedly planning the first remittance for the 29th or 30th. It expects to use foreign-exchange reserves entrusted by the Bank of Korea and the Foreign Exchange Stabilization Fund, raise about $1.2 billion through those reserves and secure roughly $700 million through government-guaranteed bonds issued by a public corporation. It may obtain the remaining funds through bank loans from global financial institutions, avoiding the market shock that could result from raising a large amount of foreign currency at once.

Seoul is negotiating with the U.S. Commerce Department and others over a possible purchase of shares in Westinghouse, currently owned by a Canadian private-equity fund. The United States has reportedly proposed a joint acquisition. South Korean officials believe securing voting rights could create shared interests in U.S. nuclear projects and help resolve intellectual-property issues affecting Korean nuclear exports. They believe a stake of more than 20% could allow board participation, although Washington reportedly opposes an excessive increase in South Korea’s share.

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The private-equity fund that currently owns Westinghouse will try to sell the stake at a high price, and the United States will want a larger share than South Korea. We could pay a high cost and end up effectively serving as a subcontractor.

Experts question whether the deal would be worth the cost. Dongguk University professor Park Jong-woon said the private-equity owner would seek a high price, while the United States would want a larger stake than South Korea. He warned that South Korea could pay heavily and still function mainly as a subcontractor. Lee Jeong-yoon of Nuclear Safety and Future said a previous full acquisition of Toshiba did not provide access to U.S. technologies such as reactor design, suggesting the gains could be limited.

The government is also cautious about the $67 billion Alaska LNG project proposed by Washington. The plan involves a 1,250-kilometer pipeline from northern Alaska oil and gas fields to the south and an LNG terminal at Nikiski capable of processing and transporting 20 million tonnes a year. Seoul is reviewing its commercial logic and feasibility, so a planned announcement may say only that both countries will consider pursuing the project.

The Texas Encinal gas-fired power project has made the most progress. The 6.5-gigawatt plant near the Mexican border would supply nearby AI data centers. Seoul believes the project has commercial logic, though it remains at an early stage and needs continued review. The United States has reportedly made no specific demands over Samsung Electronics or SK Hynix semiconductor investments.

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Even when Toshiba was fully acquired in the past, we were not allowed anywhere near U.S. technologies such as reactor design. There may not be much we can obtain.