Seoul: South Korea's inaugural investment project in the United States, under a bilateral trade agreement, is expected to focus on the establishment of a power plant, as per government sources. The announcement follows Industry Minister Kim Jung-kwan's statement that the two nations are finalizing discussions centered on the energy sector, with comprehensive details anticipated to be revealed as soon as early next month.

According to Yonhap News Agency, the initial investment is projected to be a combined cycle power plant in the U.S., designed to address the rising electricity needs of artificial intelligence (AI) data centers. This move aligns with the bilateral trade agreement from last year, where South Korea pledged to invest $350 billion in the U.S., with an annual investment limit of $20 billion.

Discussions between South Korea and the U.S. have been ongoing to identify suitable investment projects under the framework of the trade deal. The focus on energy infrastructure reflects the increasing demand for reliable power sources to support technological advancements and data-driven industries.