South Korea’s $22.3 Billion Power Plant Investment in Texas
Date: 22 September 2026
Author: Faisal Mahmud
South Korea has officially selected a $22.3 billion gas-fired power plant project in Texas as the first initiative under its ambitious $350 billion investment program in the United States. This announcement comes during South Korean President Lee Jae Myung’s visit to the US for the UN General Assembly, where he intends to engage with President Donald Trump.
Key Details:
- Project Location: Encinal, Texas
- Capacity: Approximately 6.3 gigawatts
- Investment Agreement: Reached on July 30, 2025, as part of a trade deal that included a reduction in tariffs on South Korean goods from 25% to 15%.
Industry Minister Kim Jung-kwan presented the project to the National Assembly’s trade and industry committee after all government reviews were successfully completed.
Financial Insights:
- The investment agreement was finalized on October 29 and formalized through a memorandum of understanding in November.
- Out of the $350 billion investment package, $200 billion is earmarked for strategic investments, while $150 billion focuses on shipbuilding cooperation.
Economic Impact:
With the rising demand for electricity in Texas, driven largely by the expansion of artificial intelligence data centers and advanced semiconductor plants, this development aims to effectively address these needs. The Korean government anticipates that the facility could generate between $43.29 billion and $45.4 billion in revenue over the next 20 years.
