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South Korea has selected a $22.3 billion gas-fired power plant in Texas as the first project under its $350 billion investment program in the United States, officials said on Tuesday.
The announcement came as South Korean President Lee Jae Myung visits the United States for the UN General Assembly and seeks to engage with US President Donald Trump. The Korea JoongAng Daily reported that Industry Minister Kim Jung-kwan presented the plan to the National Assembly’s trade and industry committee after the project cleared government reviews.
Details of the Texas power project
The development will involve the construction of a combined-cycle gas-fired power plant in Encinal, Texas, with a total generation capacity of about 6.3 gigawatts.
The facility is intended to meet growing electricity demand in Texas as artificial intelligence data centers and advanced semiconductor plants expand across the state. South Korea’s government estimates that the plant could generate between $43.29 billion and $45.4 billion in revenue over 20 years.
Investment deal linked to tariff reduction
Seoul and Washington initially reached the investment agreement on July 30, 2025, as part of a trade deal. Under the agreement, the United States reduced reciprocal tariffs on South Korean goods from a proposed 25% to 15% in exchange for Korean investment and other commitments.
The terms were finalized on Oct. 29 and formalized through a memorandum of understanding in November. According to South Korea’s Yonhap News, $200 billion of the $350 billion package was allocated for strategic investments, while $150 billion was earmarked for shipbuilding cooperation.
