The South Korean government indicated in its report to the National Assembly that a Texas power plant-centered proposal would be its first investment in the United States. Investment in Alaska LNG was also added for consideration, and an umbrella investment structure was presented to ensure commercial viability.
The day’s report to the National Assembly included a proposal, under a nuclear power framework, to build 8 large nuclear power plants in the United States and acquire a stake in Westinghouse. The total project cost is estimated at approximately $120 billion. The proposal under discussion comprises 6 Westinghouse AP1000 units and 2 Korean APR1400 units.
The APR1400 had previously been considered difficult to introduce into the US market, but a proposal to allow its entry is now under discussion in connection with the US investment negotiations. While the acquisition of a Westinghouse stake is proceeding with a target of securing 5–10%, the US side had expressed reservations about the initial target of securing at least 20%.
Investment in Alaska LNG is also under consideration, with the construction of an approximately 1,300-kilometer gas pipeline and an LNG terminal envisaged. The large initial investment and uncertainty over the project’s commercial viability were identified as challenges, and the South Korean government has been carefully discussing participation in the investment.
The report described an umbrella investment structure under which SPVs would be established beneath an I-SPV, with total project income distributed 50:50 between South Korea and the United States, and allocated 10% to South Korea and 90% to the United States after recovery of principal and interest. It was explained that, if annual investment reaches $20 billion and total investment exceeds $200 billion, no additional investment would be made.