A plan is underway to invest $19.8 billion in constructing gas-fired combined-cycle power plants in Texas and other parts of the United States as the first major investment project in the U.S. The scope of investment is expanding from manufacturing sectors such as semiconductors and batteries to energy infrastructure. This move could help ease U.S. dissatisfaction over Korea's delayed implementation of investments compared to Japan and serve as a catalyst for restoring Korea-U.S. relations, which have been strained by the Coupang issue and various security concerns.
Gas-fired combined-cycle power plants have emerged as an alternative to nuclear power and renewable energy amid surging electricity demand in the U.S. driven by the spread of AI data centers. They can be built in a relatively shorter timeframe than nuclear plants, allow for flexible output adjustments, and help compensate for the intermittency of renewable energy. Considering rising electricity prices and the possibility of long-term power purchase agreements (PPAs), this is a project worthy of thorough review from a profitability standpoint.
Japan has already followed a similar path. Japanese companies have participated in U.S. LNG projects, with Mitsui & Co. and Mitsubishi Corporation expanding investments in gas and power infrastructure. Subsequently, they broadened their scope to include hydrogen, ammonia, carbon capture, and other areas, extending their investment reach across the entire energy value chain. The first major Korean investment project is not significantly different from this trend.
Power and energy infrastructure are sectors that do not directly confront issues such as technology leakage, supply chain competition, or subsidy disputes, unlike semiconductors or batteries. The U.S. urgently needs power supply due to the return of AI data centers and manufacturing industries, while Korea can find opportunities in the construction and operation of power facilities, equipment supply, and financial funding. This investment is also expected to play a key role in reshaping supply chains and industries in the U.S., particularly in energy, shipbuilding, and semiconductors.
However, large-scale investments in the U.S. inherently carry exchange rate risks. If $19.8 billion flows out of Korea, demand for dollars will increase, potentially leading to downward pressure on the won. Changes in U.S. gas prices and policy environments also pose variables. Given annual investment capacity, the pace of investment should be adjusted gradually, and funding methods must be structured to minimize burdens on the macroeconomy.
Investments in the U.S. should not merely succeed as business deals. Above all, they must lead to conclusions that align with national interests. Beyond securing profitability, these investments should help revive Korea-U.S. relations and serve as an opportunity for Korean companies to expand their foothold in the United States.
in OPINION
