South Korea signs contracts with the U.S. for the design of four AP1000 nuclear power plants

Recently, Hyundai Engineering & Construction Group and Fermi America officially signed a Front-End Engineering Design (FEED) contract. Under the agreement, Hyundai E&C will undertake the design and related pre-construction work for four large-scale nuclear power plants in the United States—a concrete step forward in energy cooperation between the two countries. The signing of this contract marks an industry milestone: it signifies the first time a Korean company has broken through the market entry barriers for designing and constructing large-scale nuclear power plants in the U.S., securing formal contractual authorization for such projects. Historically, large-scale nuclear plant construction in the U.S. has been dominated by domestic or European firms; Korea’s entry is expected to reshape the competitive landscape of the U.S. nuclear engineering market. From the perspective of the project sponsor, Fermi America is a U.S.-based private energy firm focused on developing new-energy infrastructure. Its flagship initiative is a comprehensive energy hub project near Amarillo, Texas—totaling $500 billion in investment. Designed to be the world’s largest privately owned grid and supporting infrastructure cluster, the project aims to deliver stable, high-efficiency electricity specifically tailored to next-generation artificial intelligence (AI) infrastructure. As AI data center computing demands surge, conventional grid systems are increasingly unable to meet requirements for stability and capacity; this private grid will be engineered explicitly to support the high-load, continuous-operation characteristics of AI facilities.

U.S.–South Korea trade agreement finalized: South Korea pledges $350 billion in U.S. investment in exchange for tariff reductions and nuclear technology concessions

South Korea and the United States have signed a memorandum of understanding (MOU) under which Seoul commits $350 billion in investment in exchange for tariff concessions and key defense technology accommodations. This agreement provides greater certainty for South Korean automakers’ and chipmakers’ export plans. According to the agreement, the U.S. will impose a 15% cap on tariffs levied on South Korean goods; automobile tariffs will be reduced from the current 25%, though they remain far higher than the 2.5% rate under the previous free trade agreement. In return, South Korea must purchase $25 billion worth of U.S. military equipment by 2030 and contribute $33 billion to support U.S. Forces Korea. The agreement also includes critical defense concessions long sought by South Korea—including accelerated progress toward indigenous nuclear submarine construction, as well as expanded rights in uranium enrichment and nuclear fuel reprocessing. The $350 billion investment framework: Shipbuilding and semiconductors as priority sectors The $350 billion investment program will channel Korean capital into strategic U.S. industries—including shipbuilding, energy, semiconductors, pharmaceuticals, critical minerals, artificial intelligence, and quantum computing. According to media reports, Lee Jae-myung emphasized that investments will be limited to commercially viable projects, directly addressing public concerns that the plan might amount to aid or incur unrecoverable losses. Per the joint document, the U.S. agrees to cap South Korea’s annual dollar outflows at $20 billion and offers flexibility in timing adjustments when necessary to prevent currency market instability. The South Korean government plans to establish a dedicated fund via special legislation, financed either by returns on existing foreign exchange reserves or by issuing foreign-currency bonds—not by purchasing dollars domestically. Project selection will continue until the end of former President Trump’s term in January 2029. South Korea must disburse funds within no fewer than 45 business days after receiving formal U.S. notification of approved investment targets. Reports indicate that a central ‘Investment Special Purpose Vehicle’ will oversee individual projects, pooling risks so that losses from any single project can be offset by gains from others. Profits will be shared on a 50:50 basis until principal and interest are fully repaid; thereafter, revenue distribution will shift to a 90:10 split favoring the United States.

Texas Power Plant, Nuclear Projects Discussed in South Korea's US Investment Package

4 days ago

South Korea and the US are finalizing a $350 billion investment package that includes a Texas gas-fired power plant and negotiations for up to eight nuclear reactors. Discussions also cover potential stakes in Westinghouse, the Alaska LNG project, and carbon capture initiatives.

reuters

2026-09-18

Texas Power Plant, Nuclear Projects Discussed in South Korea's US Investment Package

Texas Power Plant, Nuclear Projects Discussed in South Korea's US Investment Package

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