Joint statement from six major economic bodies on Korea-US strategic investment projects

'Trade deal reaffirmed and translated into real investment projects'

Energy infrastructure seen as gateway for Korean firms to expand in US market

Business groups stress 'commercial viability and mutual benefit' for follow-up projects

US President Donald Trump announced Wednesday (local time) a $200 billion Korean investment plan for the United States, including the Alaska LNG development project. Criticism has mounted that including the Alaska LNG project — which the South Korean government said it had only "begun reviewing" — was a strategy to win Alaska votes in the midterm elections. Trump shakes hands with Sen. Dan Sullivan (R-Alaska) during the announcement. [UPI]
US President Donald Trump announced Wednesday (local time) a $200 billion Korean investment plan for the United States, including the Alaska LNG development project. Criticism has mounted that including the Alaska LNG project — which the South Korean government said it had only "begun reviewing" — was a strategy to win Alaska votes in the midterm elections. Trump shakes hands with Sen. Dan Sullivan (R-Alaska) during the announcement. [UPI]

South Korea's major business groups welcomed the Korea-US strategic investment project plan announced by the two governments, expressing hope that large-scale investment commitments will translate into concrete projects, easing trade uncertainty and opening new opportunities for Korean companies in the US market.

Six major economic organizations issued a joint statement Thursday, saying the business community "regards the announcement of the Korea-US strategic investment project plan as meaningful and highly commends both governments' efforts to build a framework for mutually beneficial economic cooperation despite a challenging trade environment."

They described the announcement as significant "in that it reaffirms the commitment to implementing last year's Korea-US trade agreement and translates it into actual investment projects."

The groups identified reducing trade uncertainty as the aspect companies are watching most closely. "We expect this to ease trade uncertainty between the two countries and improve the predictability of the business environment for Korean companies," they said.

The two governments unveiled Thursday the implementation plans for three projects — a gas-fired combined-cycle power plant in Texas, a Korea-US nuclear power cooperation framework, and the Alaska LNG project — as follow-up measures to the strategic investment MOU signed last year.

The first project, "Project Star," involves building a gas-fired combined-cycle power plant for AI data centers in Encinal, Texas, at a total project cost of $22.3 billion. With a generation capacity of 6,472 megawatts, the plant is set to begin Phase 1 commercial operations in 2029 and reach full operation by 2032.

A "Korea-US Nuclear Framework" is also being established to build eight large nuclear power plants in the United States. Whether each individual plant will actually be built will be decided separately based on project structure and economic viability. The Alaska LNG project is not a finalized investment commitment either; it remains at the stage of reviewing commercial viability.

The business community expressed hope that these energy infrastructure projects would serve as a springboard for Korean companies to expand their presence in the US market.

"We believe that expanded participation by Korean companies in the US energy infrastructure sector will not only bring related industries along and boost exports to the United States, but also contribute to enhancing industrial competitiveness in both countries, stabilizing supply chains, and strengthening economic security cooperation," the six groups said.

At the same time, the groups made clear that follow-up projects must be assessed for commercial viability.

"We hope that future follow-up projects will also yield tangible business results grounded in commercial viability and mutual benefit for both countries, and contribute to strengthening energy security," the six groups said. "We also hope this will further solidify a long-term, reliable industrial and supply chain cooperation partnership between Korea and the United States."

They added that "the Korean business community will actively cooperate to ensure this investment deepens economic cooperation between the two countries, expands Korean companies' business in the United States, and ultimately helps restore vitality to the Korean economy."


kwater@heraldcorp.com