"First U.S. Investment in Texas Gas Power Plant"... Nuclear and Alaska Also Planned

[Anchor]

The South Korean government has reported a $200 billion U.S. investment project to the National Assembly. As its first project, it plans to build a combined-cycle gas power plant in Texas, while also pursuing nuclear power plant construction in the United States and an LNG project in Alaska.

Son Hyeong-an reports.

[Reporter]

Minister of Industry and Trade Kim Jung-kwan visited the National Assembly on September 22 to deliver a closed-door briefing on U.S. investment projects.

[Kim Jung-kwan / Minister of Industry and Trade: "We have closely examined the projects based on the consistent principle of commercial viability. We would like to report on one project that the government has decided to pursue."]

The confirmed "Project No. 1" has been identified as a venture to construct a combined-cycle gas power plant in Encinal, Texas.

With a total project cost of $22.3 billion, the government reportedly briefed the National Assembly that it could earn up to $45 billion over the next 20 years, making it possible to recover the principal and interest.

Concerns were raised primarily among opposition lawmakers.

[Ku Ja-keun / People Power Party Lawmaker: "Since it is in the development stage, I conveyed that caution must be exercised regarding commercial viability."]

The briefing to the National Assembly also included what was described as "plans to pursue two projects that reflect the mutual interests of South Korea and the U.S., although they have not yet been finalized."

These are the construction of eight nuclear reactors in the U.S. and an Alaska LNG development project.

There have been ongoing assessments that both projects entail high risks relative to investment.

Regarding the nuclear power plant project, Minister Kim reportedly stated that negotiations are underway "with the goal of securing a 5 to 10 percent stake" in U.S. nuclear firm Westinghouse, adding that voting rights could also be secured. Regarding the Alaska LNG investment, he reportedly noted that "it is too early to assess commercial viability as the project has not yet taken concrete shape."

The government is also reported to have clearly laid out the principle that the total execution volume of U.S. investments will not exceed the $200 billion ceiling of the U.S. investment fund.

(Video by Lee Seung-hwan and Shin Dong-hwan | Video editing by Wi Won-yang)
※ Please note: This article was translated by AI and may contain errors.