Seoul aims to unveil first US investment project this week

South Korea could announce its first project as part of a $200 billion US strategic investment program as early as this week, Industry Minister Kim Jung-kwan said Sunday, upon his return from three days of talks in the US.

“We have yet to reach a final decision, so it is difficult to say anything definitive at this point,” Kim told reporters after arriving at Incheon Airport. “We plan to make an attempt sometime this week, and if we reach a final agreement, we hope to make an announcement within the week as well.”

Kim met US Commerce Secretary Howard Lutnick and other officials from Thursday through Saturday to discuss prospective projects, investment amounts and terms. He traveled to the US directly from Europe after accompanying President Lee Jae Myung on his state visit to France.

“I came to wrap up the ongoing US investment negotiations,” Kim told reporters at Newark Liberty International Airport on Thursday, adding that talks should be considered ongoing until a final agreement is signed.

Kim said the latest round had produced substantial progress. “It is true that we made significant progress on many issues,” he said. “But negotiations are not over until the final signature.”

The Encinal combined-cycle gas power plant project in Texas and nuclear power projects have emerged as leading candidates. The Ministry of Trade, Industry and Resources, however, said no specific project has been finalized and consultations with Washington are still underway.

Asked whether details of the Texas gas project and follow-up nuclear power projects had been settled, Kim said it was “still difficult to discuss specifics.” He gave a similarly cautious response when asked about an Alaska liquefied natural gas project.

The ministry recently gave lawmakers a closed-door update on follow-up negotiations. A National Assembly official who received the briefing said the two projects were understood to be “nearly certain,” although the government has yet to announce a final decision.

Kim is expected to report the outcome of the latest talks to the National Assembly on Thursday, potentially offering a clearer picture of which projects will move forward first and the timetable for carrying out the investment package.

Korea committed to $350 billion in US investments during tariff negotiations with Washington last year, including $150 billion for shipbuilding cooperation and $200 billion for strategic investments.

The growing list of prospective projects has raised concerns that their combined cost could exceed the $200 billion set aside for strategic investments. Up to eight large-scale nuclear reactors, the Texas gas power project and Alaska LNG have all been floated as possible candidates.

Kim said the ceiling would be respected.

“The $200 billion investment ceiling and the annual cap of $20 billion were set when we reached the original agreement with the United States,” he said. “I do not expect us to exceed those limits.”

Alongside the choice of projects, attention is turning to safeguards written into the memorandum of understanding governing the program.

Under the memorandum, only projects deemed commercially reasonable are to be recommended to the US president. That means a project should be expected to generate enough cash flow during the investment period to repay principal and interest.

An investment committee chaired by the US commerce secretary is to recommend projects after consultations with the Korean side, while US President Donald Trump has final authority over project selection.

Korea’s annual strategic investment is capped at $20 billion, and funds are to be transferred no earlier than 45 business days after Washington notifies Seoul of its selection.

The two sides also agreed to establish an umbrella special-purpose vehicle to oversee the program and manage risks across individual projects.

Recent reports, however, have suggested that profits and losses could be settled separately for each project, raising questions over how much risk can be shared across the broader structure. The government has not announced a final arrangement.

The Encinal project has also drawn attention following reports that Washington sought to raise its cost from around $20 billion, with the two sides said to be discussing a figure in the $22 billion range. Seoul has said no amount has been finalized.

Reports that roughly 3 trillion won ($2.2 billion) could be transferred to the US by the end of this month have also raised questions, as such a timeline would appear to conflict with the minimum 45-business-day waiting period. The government says no transfer schedule has been decided.