Seoul Slows Its $350 Billion US Investment Pledge, Project by Project

Only one project in South Korea's $350 billion US investment package has firm Korean funding: a $22.3 billion, 6,472-megawatt gas plant in Encinal, Texas. Everything else is under review, non-binding or disputed. Finance Minister Lee Hyoung-il told a parliamentary budget committee on Nov. 9 that a planned $10 billion advance for US nuclear reactors would proceed "only proceed after a full review of its business feasibility." The same day, Industry Vice Minister Park Dong-il said no decision had been made on the Alaska LNG project.

The $350 billion pledge was the price Seoul paid for a 15% ceiling on US tariffs. It splits into $200 billion of strategic cash investment, capped at $20 billion per calendar year, and $150 billion for shipbuilding cooperation that includes loan guarantees. The commitments must be announced by January 2029.

What did South Korea actually sign?

The deal was agreed on Oct. 29, 2025 at the Gyeongju summit. The US cut its country-specific tariff and its Section 232 tariff on Korean cars and parts to 15%, from 25%, and capped future semiconductor tariffs. In return Korea committed $350 billion.

The tariff picture has shifted since. The Supreme Court struck down the IEEPA tariffs on Feb. 20, 2026. A temporary 10% global tariff under Section 122 expired in July. On July 23, the administration imposed a 12.5% Section 301 tariff on most Korean goods. The 15% auto rate survived; steel and aluminum still face 50%.

Korea's National Assembly passed a special act on March 12, 2026. It created the Korea-U.S. Strategic Investment Corporation with about $1.3 billion, or 2 trillion won, of capital. Korea pays each project in cash tranches within 40 days of instructions from a US Investment Accelerator. Funding comes from Bank of Korea foreign-exchange reserves and government-guaranteed bonds. Each project must be commercially feasible.

How does the money split?

The $200 billion strategic pool is paid on request in capped annual amounts. Profits go 50:50 between the two countries until Korea recovers principal and interest. The split then moves to 10:90 in the US's favor. Chief policy officer Kim Yong-beom said in October 2025 the terms can be adjusted if Korea cannot recover its money within 20 years.

The $150 billion shipbuilding pool, branded MASGA, mixes equity with loan guarantees from the Export-Import Bank of Korea and K-SURE. It has not taken shape. A trade ministry official told Korea JoongAng Daily that "ultimately, companies must make their own investment decisions first." Shipbuilders want government funds secured first.

Currency was a central worry. With $416.3 billion in reserves at end-August 2025, Seoul proposed an unlimited currency swap; none was agreed. The won closed at 1,528.9 per dollar on June 11, 2026, near its weakest since 2009. Then-Finance Minister Koo Yun-cheol said in January that currency conditions limited 2026 outlays to well below the cap.

Which projects have been named?

• Project Star, Encinal, Texas: $22.3 billion combined-cycle gas plant for AI data centers. Related Companies and NextEra Energy lead development; Lewis Energy Group supplies land, gas and water. First 1,952-megawatt phase due 2029, full capacity 2032. Power contracts to be finalized in 2027.
• Project Power: eight reactors — six Westinghouse AP1000s, two APR1400s — at up to $120 billion. KEPCO and Korea Hydro & Nuclear Power participate; Korea would take 5% to 10% of Westinghouse. Non-binding, per Brookfield. The $10 billion advance is now behind Lee's feasibility review.
• Project North, Alaska LNG: developer Glenfarne estimates up to $54.5 billion. Trump announced $54 billion of Korean backing; Industry Minister Kim Jung-kwan said the announcement went "far beyond what was agreed." Seoul will hire a foreign consultant to review the economics.
• $8.4 billion oil recovery: Trump's Oct. 2 Truth Social claim. Seoul says it is not in the agreement and has asked Washington for clarification.

Where does shipbuilding stand?

Hanwha bought Philly Shipyard for $100 million in 2024 and pledged $5 billion to expand it, targeting up to 20 ships a year from fewer than two. On Nov. 1 it signed a $269 million contract with TOTE Services for a US Navy landing ship medium, its first Navy order. The expansion has been delayed because the MASGA fund has not formed, Baird Maritime reported. HD Hyundai Heavy Industries works with Huntington Ingalls; Samsung Heavy Industries signed a maintenance pact with Vigor Marine.

What do the midterms change?

Democrats won both chambers on Nov. 3. Analysts told Reuters allies could slow-walk tariff-driven pledges. Sogang University economist Heo Yoon said Democrats see the commitments as imposed, easing pressure. Others expect Trump to push harder; he has threatened to "double" the 15% tariff if Seoul does not sign Alaska LNG "shortly." In Texas, Governor-elect Gina Hinojosa has pledged to suspend new data center approvals. The next markers are the $10 billion reactor advance, the Alaska LNG consultant's verdict, and the Texas plant's 2027 contracts.