South Korea and the United States are reportedly closing in on a landmark agreement for South Korea's first major investment in the US, focusing on nuclear power and natural gas sectors totaling over $100 billion. According to a report by The Wall Street Journal (WSJ) on September 10 (local time), citing multiple informed sources, negotiations have entered the final stages, and an official announcement could be made as early as next week. However, sources noted that because talks are still ongoing, specific details and the exact timing of the announcement remain subject to change. 

The envisioned investment package primarily targets the construction of up to eight nuclear reactors within the United States and a natural gas power plant project in Texas. While exact construction schedules and specific sites have not been finalized yet, federal government-owned land in the US is being heavily discussed as potential locations. For the nuclear portion, American company Westinghouse's AP1000 reactor design is being considered for initial projects, alongside ongoing discussions regarding the potential adoption of South Korea's homegrown APR1400 reactor model. Total investment for the nuclear sector is projected to reach tens of billions of dollars and could potentially surpass $100 billion. Meanwhile, the Texas natural gas initiative is estimated to be around a $20 billion scale. 

Insiders also revealed that if the contract proceeds according to plan, South Korea is prepared to arrange an initial capital injection of over $2 billion before the end of this month. Notably, the Alaska LNG project, which the US side has previously urged South Korea to join, was not mentioned in this latest report. WSJ analyzed that this massive investment initiative will ultimately support surging power demands driven by the rapid expansion of the United States artificial intelligence (AI) industry. 

Domestically, South Korea's Ministry of Trade, Industry and Energy plans to brief the National Assembly on the detailed aspects of this inaugural US investment package on September 17. This development stems from a previous bilateral understanding where South Korea agreed to invest a total of $350 billion in the US and purchase $100 billion worth of American energy over four years, in exchange for the US lowering tariffs on South Korean products from 25% to 15%.

[Copyright (c) Global Economic Times. All Rights Reserved.]