South Korea-U.S. Strategic Investment Framework Sets Course for Eight Nuclear Reactors and First LNG Project in Texas

South Korean officials and U.S. counterparts are preparing to sign a bilateral strategic investment framework. The document will embed a broad plan to pursue the construction of eight large nuclear reactors in the United States, with at least two using South Korea’s APR-1400 design. The framework also earmarks a liquefied natural gas (LNG) combined-cycle power plant in Encinal, Texas, as the first U.S. project funded through South Korea’s $200 billion investment pledge.

Korea, U.S. Plan Eight Nuclear Reactors; LNG Plant Comes First South Korea, US plan 8 nuclear reactors under investment pact South Korea to Pursue Construction of 8 Large Nuclear Reactors in U.S.; First Investment Targets Texas LNG Power Plant — BigGo Finance Korea, U.S. to Pursue Eight Nuclear Reactors; LNG Plant Comes First

The nuclear component follows a $350 billion U.S. investment package agreed in late 2024, which included a $200 billion cash commitment. Under that arrangement, Washington asked Seoul to allocate $120 billion toward nuclear power, while South Korea seeks to protect its semiconductor megaprojects at home. The APR-1400 design, already exported to the United Arab Emirates and the Czech Republic, has been a longstanding demand of Seoul, contrasting with the U.S. initial push for Westinghouse AP-1000 reactors.

Korea, U.S. Plan Eight Nuclear Reactors; LNG Plant Comes First

• July 7, 2025 – President Lee Jae Myung met President Donald Trump at an official dinner in Ankara, Turkey, underscoring high-level engagement.

Korea weighs $120 billion investment in 8 nuclear reactors in U.S. as part of tariff deal

• Sept 7, 2026 – A ruling-party lawmaker confirmed to AJP that the eight-reactor plan will be included in the upcoming memorandum of understanding.

Korea, U.S. to Pursue Eight Nuclear Reactors; LNG Plant Comes First

• Signing date – The memorandum is expected to be signed in September, formalizing the nuclear and LNG components.

Korea, U.S. to Pursue Eight Nuclear Reactors; LNG Plant Comes First

• A ruling-party lawmaker briefed the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee that the eight-reactor plan will be reflected in the forthcoming memorandum, emphasizing that the framework will set direction rather than lock in sites, technologies, or financing details.

Korea, U.S. to Pursue Eight Nuclear Reactors; LNG Plant Comes First

• Ministry of Trade, Industry and Resources officials indicated that the $120 billion nuclear allocation is part of the broader $350 billion U.S. investment package, and that Washington’s pressure will not affect Korea’s domestic semiconductor megaprojects.

Korea weighs $120 billion investment in 8 nuclear reactors in U.S. as part of tariff deal

• Park Jung-sung, chief of South Korea’s Trade Negotiation Headquarters, confirmed that the Encinal LNG project has been finalized and will be the first investment under the special act governing U.S. projects.

South Korea to Pursue Construction of 8 Large Nuclear Reactors in U.S.; First Investment Targets Texas LNG Power Plant — BigGo Finance

• Encinal cost figures: Sources differ on the final cost—one report cites $22.3 billion after negotiation, while another mentions a $25 billion figure proposed by the U.S. side before compromise.

South Korea to Pursue Construction of 8 Large Nuclear Reactors in U.S.; First Investment Targets Texas LNG Power Plant — BigGo Finance

• Total nuclear investment range: Estimates vary between $80 billion and $120 billion for eight reactors, reflecting uncertainty over reactor types, financing structures, and profit-sharing mechanisms.

South Korea to Pursue Construction of 8 Large Nuclear Reactors in U.S.; First Investment Targets Texas LNG Power Plant — BigGo Finance

• Project specifics: Locations, participating companies, and detailed financing splits for the eight reactors remain undecided, with the memorandum expected to contain only broad language.

South Korea to Pursue Construction of 8 Large Nuclear Reactors in U.S.; First Investment Targets Texas LNG Power Plant — BigGo Finance

• The memorandum of understanding is slated for signing in September, after which both governments will begin detailed consultations on reactor sites, technology choices, and financing models.

Korea, U.S. to Pursue Eight Nuclear Reactors; LNG Plant Comes First

• An investment special purpose vehicle (I-SPV) will be established to channel South Korean capital into individual U.S. projects, with profit-distribution formulas to be negotiated.

South Korea to Pursue Construction of 8 Large Nuclear Reactors in U.S.; First Investment Targets Texas LNG Power Plant — BigGo Finance

• Ongoing legislative oversight in South Korea’s National Assembly will monitor commercial viability and risk allocation for the nuclear and LNG components.

South Korea, US plan 8 nuclear reactors under investment pact