Negotiations between South Korea and the United States regarding a $200 billion investment package have hit roadblocks due to disagreements over nuclear projects and financial commitments. The ongoing discussions aim to address issues concerning nuclear reactor designs, investment schedules, and risk management.
Nuclear power has emerged as a significant point of contention. The two nations are considering the construction of eight nuclear reactors in the U.S., with six based on Westinghouse’s AP1000 design and two utilizing South Korea’s APR1400 technology. However, U.S. officials and Westinghouse are reportedly opposing the inclusion of the Korean-designed reactors, complicating the finalization of the nuclear component of the investment package.
Further complicating matters, South Korea is seeking to acquire a 15% to 20% stake in Westinghouse, along with voting rights and a board seat. In contrast, Westinghouse prefers to limit South Korea’s ownership to below 10%. Additionally, South Korea is exploring potential participation in a U.S. project for processing spent nuclear fuel and a proposed liquefied natural gas project in Alaska, though concerns about construction costs and returns remain.
Disagreements over funding schedules and investment returns have also added to the uncertainty. Washington has requested more than $9 billion from South Korea by the end of this year, whereas Seoul initially planned to contribute a smaller amount in 2026, ramping up investments from 2027. The two sides are also divided on how to calculate returns and losses, with Seoul advocating for a unified approach to offset losses with profits from successful projects, contrary to the U.S. preference for project-by-project accounting.
Despite these challenges, both governments continue to negotiate, with South Korea’s Industry Ministry emphasizing that the final details regarding projects, funding structures, and investment arrangements are still under discussion.