The Democratic Party of Korea on the 1st called the strategic U.S. investment project formally announced by Seoul and Washington "a meaningful achievement that protected the national interest on the basis of commercial rationality." With a $22.3 billion gas-fired combined-cycle power plant in Texas set as the first project, the party said it would use the National Assembly to verify whether the safeguards agreed by the two countries — covering recovery of invested funds, profit-sharing and protection against shocks to the foreign exchange market — actually function once the project is under way.
Kwon Chil-seung, chair of the party's policy committee, said at a policy coordination meeting at the National Assembly that day: "The strategic U.S. investment project was officially announced early this morning. At a time when U.S. trade pressure and uncertainty in the global trade environment persist, this agreement is a meaningful achievement that protected the national interest on the basis of commercial rationality through intense consultations between South Korea and the United States."
The two governments confirmed the construction and operation of the Encinal gas-fired combined-cycle power plant in Texas as the first strategic investment project in the United States. Total project costs come to $22.3 billion for a 6,472-megawatt plant that will supply electricity to facilities including artificial intelligence data centers, with commercial operation to begin in stages from 2029. The government expects to recover the principal and interest on the investment over the life of the project.
"We expect principal and interest to be recoverable within 20 years of the start of commercial operation," Kwon said. "We have also put in place a safeguard that allows the two countries to discuss adjustments to profit-sharing and other terms through consultations should a serious problem arise in the course of the project."
Kwon also stressed that the investment should be linked to Korean companies' entry into the U.S. market. "This is significant in that the investment in the United States is not a simple transfer of funds but is being used as an opportunity for our companies to enter the U.S. market and expand industrial cooperation," he said. "In the energy and nuclear power sectors, our companies will be able to expand their presence in the U.S. market through participation in building and operating power plants and through equipment exports."
Along with the Texas gas plant, the government agreed on a basic direction for pursuing construction of a large nuclear power plant in the United States, while deciding to conduct further review of the economics of an Alaska liquefied natural gas project. The Democratic Party is also watching the possibility that experience gained in the U.S. market will lead Korean companies into third countries.
Still, the party said it would continue to verify whether the large-scale investment translates into actual national benefit. "The protective mechanisms agreed between South Korea and the United States — annual investment caps, recovery of principal and interest, profit-sharing and foreign exchange market safeguards — must be managed so that they work faithfully as the project proceeds," Kwon said. "The National Assembly will also continue to check whether the strategic U.S. investment is being carried out in line with the principles and procedures set out in the original agreement and the special act."
On a separate pilot program to overhaul community primary care, Kwon called it "the first step toward a Korean-style family doctor model." Launched on the 29th of last month at 120 neighborhood clinics nationwide, the program covers residents aged 50 and over and provides not only treatment of illness but also prevention, health management and links to care services.
"With medical cost burdens rising sharply amid rapid population aging and an increase in chronic disease, strengthening primary care is an unavoidable task," he said. "The role of primary care must be expanded from a focus on treatment to a focus on prevention and management." The government plans to run the pilot program for about three years using a multidisciplinary approach that involves not only doctors and nurses but also dietitians, physical therapists, occupational therapists and social workers.
