South Korea, US near $100 billion energy deal

South Korea is seeking a major energy investment deal worth $100 billion in the United States, aimed at powering the AI boom amid growing global competition.

South Korea is seeking a major energy investment deal worth $100 billion in the United States, aimed at powering the AI boom amid growing global competition.

Under the deal, South Korea would finance the construction of up to eight nuclear power plants, according to sources cited by The Wall Street Journal.

The first nuclear reactors would use designs from US firm Westinghouse Electric, while some subsequent reactors could use designs from South Korea’s KEPCO.

An investment of $20 billion would be used for a natural gas power plant in Texas to help power AI data centres.

The investments from South Korea are expected to be made over many years.

Speaking about the details of the investment in the US, Seoul’s trade ministry said the contents of the deal have not yet been finalised. The White House has not yet responded to the report.

Last October, President Donald Trump and South Korean President Lee Jae Myung finalised a trade deal under which South Korea committed $350 billion in investments in US manufacturing. In return, Washington capped tariffs on Korean imports at 15 per cent.

However, implementation has faced various difficulties, with the biggest challenge coming from Trump’s threats to raise tariffs on some countries.

The announcement comes after South Korea faced a snub from the US last month when Washington decided to scale back military drills due to Seoul’s lack of support for the war in Iran.