South Korea and the United States are grappling with significant hurdles in their negotiations over a proposed $200 billion investment by Seoul in U.S. projects, with nuclear power at the heart of the divide. The two nations have yet to finalize an agreement, as key issues remain unresolved, including the choice of nuclear reactor designs and the timing of South Korea’s financial contributions.
Central to the discussions is the construction of eight nuclear reactors in the United States. The proposed plan includes six reactors based on Westinghouse’s AP1000 design and two utilizing South Korea’s APR1400 technology. However, U.S. officials and Westinghouse have resisted the inclusion of the Korean-designed APR1400, complicating efforts to conclude a deal. South Korea has expressed interest in acquiring a 15% to 20% stake in Westinghouse, along with voting rights and a board seat, while Westinghouse reportedly seeks to limit Seoul’s ownership to below 10%.
Further complicating negotiations are differences over South Korea’s potential role in a U.S. project for processing spent nuclear fuel and a proposed liquefied natural gas project in Alaska. Concerns about construction costs and long-term returns have made these projects contentious points.
Funding schedules are another sticking point, with Washington reportedly requesting over $9 billion from South Korea by year-end. Conversely, Seoul had planned to contribute a smaller sum in 2026, with increased annual investments beginning in 2027. The method of calculating investment returns also remains contentious. South Korea favors using profits from successful projects to offset losses, while the U.S. side prefers separate calculations for each project.
The framework under discussion would allow the United States to receive 90% of net profits after recovering principal and interest. South Korea has raised concerns that this project-by-project accounting could result in the U.S. benefiting from profitable ventures while Seoul bears the brunt of unsuccessful ones.
Despite these ongoing challenges, both governments are committed to continuing negotiations. South Korea’s Industry Ministry has stated that the specific projects, funding structures, and investment arrangements are still under discussion and have not yet been finalized.