Nuclear Power and Shipbuilding Selected as Investment Destinations
Japan Already Specified Nuclear Power in Investment MOU
Howard Lutnick, U.S. Secretary of Commerce, announced that a portion of the U.S.-bound investment under the Korea-U.S. tariff agreement will be used for the construction of nuclear power plants in the United States.
At a cabinet meeting held at the White House on the 2nd (local time), Secretary Lutnick addressed the allocation of the total $750 billion in cash investments pledged by Japan ($550 billion) and Korea ($200 billion), stating, "For example, we will start with nuclear power." He added, "We need to have a 'nuclear arsenal' for power generation in the United States. We will build it with hundreds of billions of dollars funded by Japan and Korea." This is interpreted as an intention to prioritize the use of part of the Japan-Korea investment for building nuclear power plants in the United States.
Previously, in the memorandum of understanding (MOU) signed with Japan, the United States specified large-scale nuclear power plants and small modular reactors (SMRs) as concrete projects. President Lee Jaemyung also announced the conclusion of the Korea-U.S. negotiations on November 14, stating, "The two countries will establish an unprecedented cooperative partnership, ranging from traditional strategic industries such as shipbuilding and nuclear power to future cutting-edge industries such as artificial intelligence (AI) and semiconductors."
According to the MOU on U.S.-bound investment signed between Korea and the United States, the total investment of $350 billion consists of $200 billion in cash investments and $150 billion in shipbuilding cooperation investments, including direct investment (FDI) by Korean companies, guarantees, and ship financing. The investment returns will be distributed equally between Korea and the United States (50:50) until the principal and interest are repaid, after which the ratio will shift to 1 (Korea) to 9 (United States).
Secretary Lutnick stated, "We will build here and split the cash flow 50:50," adding, "We will build ships in the United States with $150 billion."
Secretary Lutnick's remarks were made as each cabinet member took turns outlining their recent achievements during the meeting.
On the same day, President Trump pointed out Korea and Japan, claiming that until he imposed tariffs, other countries-including allies-were taking money from the United States. He said, "I won't name the countries. I won't mention Japan. I refuse to mention Korea," and continued, "I won't name them, but they took advantage of us in ways no one has ever experienced, and they exploited your country terribly. But now, thanks to the tariffs pouring in, we are making tremendous amounts of money."
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