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Korean trade deal investment to start with nuclear power plants, White House says

Published: 03 Dec. 2025, 17:59 Updated: 03 Dec. 2025, 19:35

U.S. Secretary of Commerce Howard Lutnick, far right, speaks alongside U.S. Secretary of Defense Pete Hegseth, center, and U.S. President Donald Trump, left, during a cabinet meeting in the Cabinet Room of the White House in Washington on Dec. 2. [AFP/YONHAP]

U.S. President Donald Trump’s administration announced Tuesday that it plans to use investment funds from trade agreements with Korea and Japan to build nuclear power plants in the United States.

As the AI boom drives a surge in data center construction and electricity demand, Washington appears to be doubling down on nuclear energy.

At a cabinet meeting at the White House on Tuesday, U.S. Secretary of Commerce Howard Lutnick highlighted trade agreements with Korea, Japan, the European Union and Britain as achievements of the Trump administration.

“Japan and Korea; they [offered] us $750 billion in cash to build in America at the president's direction,” said Lutnick during the meeting. “And we're going to start, as an example, nuclear.”

The $750 billion figure cited by Lutnick appears to combine $200 billion in cash investment from Korea — excluding the $150 billion earmarked for shipbuilding cooperation in Seoul's total pledge of $350 billion — and Japan’s $550 billion investment pledge.

U.S. President Donald Trump, center, attends a cabinet meeting with U.S. Secretary of Defense Pete Hegseth, fifth from right, U.S. Secretary of State Marco Rubio, fifth from left, U.S. Health and Human Services Secretary Robert F. Kennedy Jr., third from left, U.S. Interior Secretary Doug Burgum, fourth from left, and U.S. Commerce Secretary Howard Lutnick, fourth from right, at the White House in Washington on Dec. 2. [REUTERS/YONHAP]

'U.S. needs a nuclear energy arsenal'

“We need to have a nuclear arsenal in America of power, the generation of power,” Lutnick said. “So, we're going to build [with] hundreds of billions of dollars financed by the Japanese and the Koreans, meaning they give us the money, we build it here and we split the cash flow 50-50.”

He added that $150 billion would also be invested in the shipbuilding industry to construct vessels in the United States.

Korea’s total $350 billion investment comprises $200 billion in direct cash investment and $150 billion in shipbuilding cooperation, including foreign direct investment, guarantees and ship financing by Korean companies, according to the memorandum of understanding signed by Seoul and Washington.

Under the agreement, investment returns will be split 50-50 until the principal is repaid. After that, the revenue split will shift to 90 percent for the United States and 10 percent for Korea.

U.S. Secretary of Commerce Howard Lutnick, left, listens as U.S. President Donald Trump speaks in the Oval Office at the White House in Washington on Sept. 19. [REUTERS/YONHAP]

Japan to invest '$332 billion for energy'

A joint fact sheet released in late October on U.S.-Japan investment stated that Japan would support up to $332 billion in energy-related infrastructure, including large-scale and small modular nuclear reactors, transmission grids, substations and power networks.

The Trump administration’s decision to prioritize nuclear plant construction with Korean and Japanese investment reflects its belief that nuclear energy is essential to winning the future AI race, as nuclear energy is often viewed as the most viable option for delivering stable, 24-hour power to meet skyrocketing demand from data centers.

In May, Trump signed an executive order titled “Reinvigorating the Nuclear Industrial Base,” which set a goal of beginning construction on 10 new large nuclear reactors by 2030. This initiative is part of a long-term plan to quadruple the country’s nuclear power generation capacity from the current 95 to 100 gigawatts to 400 gigawatts by 2050.

It is estimated that building 10 new nuclear plants will cost at least $75 billion, much of which is expected to come from Korean and Japanese investments. The United States currently operates 94 nuclear reactors. However, following high-profile reactor core meltdowns in the past, public opposition to nuclear power grew, and only three new large reactors have been added since the 1990s.

U.S. President Donald Trump gestures as he departs Walter Reed National Military Medical Center following his annual physical exam, in Bethesda, Maryland, on Oct. 10. [REUTERS/YONHAP]

'Massive power needed to win AI race'

U.S. Energy Secretary Chris Wright said on Nov. 18 that the federal government’s recent approval of a $1 billion loan to Constellation Energy, the country’s largest nuclear power firm, would help expand the U.S. manufacturing base and “win the AI competition.”

“In order for the U.S. to win the AI race, we need computing power and energy,” Wright said.

At the same cabinet meeting on Tuesday, Trump also criticized Korea and Japan, implying that they had taken advantage of the U.S. before he imposed tariffs.

“I imposed historic tariffs that are now bringing in so much money that we've never... nobody's ever seen anything like it,” said Trump. “And countries that were ripping us off, including allies, but they were ripping us off for years. I won't use the names, I won't mention Japan. I refuse to mention Korea. I will not mention names, but they were ripping us off like nobody's ever been ripped off before and taking horrible advantage of your country, but now we're making a lot of money.”

Trump also boasted that the United States is now making enormous sums thanks to his aggressive tariff policy.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM HYOUNG-GU [[email protected]]