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South Korea has reportedly agreed to invest $22.3 billion in a gas-fired power plant in Texas, part of a broader trade deal with the Trump administration. This marks South Korea’s first major investment under the agreement, as reported by Reuters citing Korean media sources. The plant will have a capacity of 6.3 GW and will supply power to data centers in Texas.
As part of this deal, South Korea has committed to investing a total of $350 billion in the United States, with some funds potentially allocated to a nuclear power plant project or Alaska LNG, according to Korean media reports. The trade deal also includes a 15% tariff reduction on South Korean imports, originally threatened at 25%, to secure this investment. Additionally, South Korea has pledged to purchase $100 billion worth of U.S. liquefied natural gas (LNG) and other energy commodities, a move praised by President Trump for benefiting American workers and energy producers.
Later, South Korea also signaled plans to import more crude oil from the U.S., accelerated by geopolitical tensions, including the U.S.-Israeli war against Iran, which disrupted energy exports to Asia. Spot market prices for LNG surged to nearly $26 per million British thermal units due to escalating tensions in the Persian Gulf, raising doubts about resumed tanker traffic. South Korea remains the world’s third-largest importer of LNG, after China and Japan, while Qatar extended its force majeure on exports.
