First investment of USD 22.3 billion in Texas power plant Government: “We’ll establish an umbrella-type special-purpose entity to manage profit and loss Could recover USD 43.2–45.4 billion over 20 years”
Minister of Trade, Industry and Energy Kim Jeong-gwan delivers an advance report on investment in the United States in accordance with the “Special Act on the Operation and Management of Strategic Investment between the Republic of Korea and the United States of America” at a plenary session of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee held at the National Assembly in Yeouido, Seoul, on the morning of the 22nd. 2026.9.22 News1
The government has finalized the Encinal gas-fired combined-cycle power plant project in the state of Texas, worth USD 22.3 billion (about KRW 31 trillion), as the first project under its investment program in the United States. As candidates for the second and third projects, it plans to review the construction of eight nuclear power units in the United States, with a scale of up to USD 120 billion (about KRW 160 trillion), and the Alaska liquefied natural gas (LNG) project.
Deputy Prime Minister and Minister of Economy and Finance Lee Hyeong-il and Minister of Trade, Industry and Energy Kim Jeong-gwan appeared separately before the National Assembly’s Strategy and Finance Committee and the Trade, Industry, Energy, SMEs and Startups Committee on the morning of the 22nd to report the results of negotiations on these U.S. investment projects. The government reported to the National Assembly that in the Encinal project it expects to recover approximately USD 43.2–45.4 billion over 20 years. It presented a goal of concluding a long-term power purchase agreement (PPA) for the electricity produced by this project in 2027.
Deputy Prime Minister and Minister of Economy and Finance Lee Hyeong-il smiles toward lawmakers offering congratulations on his appointment before delivering an advance report on investment in the United States under the “Special Act on the Operation and Management of Strategic Investment between the Republic of Korea and the United States of America” at the 4th plenary session of the 439th National Assembly (regular session) Strategy and Finance Committee held at the National Assembly in Yeouido, Seoul, on the 22nd. 2026.9.22 ⓒ News1
The U.S. nuclear power plant construction project under discussion involves investing up to USD 120 billion to build six AP1000 reactors, a design developed by U.S. company Westinghouse, and two Korean-designed APR1400 reactors. The acquisition of an equity stake in U.S. nuclear company Westinghouse is reportedly being discussed at a level of 5–10%, lower than the 15% stake requested by the Korean government. For the Alaska LNG project, the plan is reportedly to secure profitability while reducing the investment scale below the level requested by the United States.
The profits from investment in the United States will be centrally managed through the introduction of an umbrella-type special purpose vehicle (SPV). This mechanism is designed as a safeguard so that even if some projects fail to generate profits, Korea can still recover its principal by combining returns from other projects. The government also reaffirmed its policy that the scale of investment in the United States will not exceed USD 20 billion per year, with a total cap of USD 200 billion.
However, concerns were reportedly raised at the National Assembly over the decision to split ownership of the Encinal project 50:50 between Korea and the United States, even though Korea is providing the entire investment for the project.
Jo Kwon-hyung;Lee Seung-woo;Jeong Soon-gu
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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