If the U.S. wins the AI race against China, it might have South Korea to thank.
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it → win → Korea
On Thursday, The Wall Street Journal reported that the South Korean government would soon announce an investment of over $100 billion for eight nuclear power plants and a natural-gas project in Texas.
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government → report → Texas
The nuclear power plants will likely be built on federal land and use the AP1000 design by U.S.-based company Westinghouse Electric.
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plants → build → Electric
Both sides have discussed having "at least some of the reactors" be the APR1400, built by South Korean manufacturer Kepco, according to the Journal.
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some → discuss → Journal
It's the start of a string of strategic investments from Korea that could grow to include the Alaska Liquefied Natural Gas pipeline—an 807-mile project to transport natural gas from Alaska's North Slope—according to the Seoul Economic Daily.
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that → grow → Daily
The projects are part of the Trump administration's push to accelerate America's AI buildout, in this case, by developing the energy sources needed to sustain it.
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projects → accelerate → it
The initial trade agreement—reached in October 2025—said South Korea would invest $350 billion in the U.S. in exchange for the U.S. reducing its tariff rate from 25 percent to 15 percent on most imports from South Korea.
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U.S. → reach → Korea
That includes $200 billion for strategic investments—$100 billion of which was earmarked for energy projects—and $150 billion for the U.S. shipbuilding sector.
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billion → include → sector
No tangible investment followed in the months since the initial announcement.
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investment → follow → announcement
As the Journal reports, that put the East Asian nation in the doghouse with the Trump administration.
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that → report → administration
In January, President Donald Trump threatened to reimpose a 25 percent tariff rate because the South Korean National Assembly had not yet approved the deal.
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Assembly → threaten → deal
To get back in the president's good graces, the South Korean government announced the creation of a state-run corporation earlier this year to select, finance, and manage investments in the U.S. and make "recommendations to Trump," per the Journal.
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government → get → Journal
Dubbed the Korea-U.S. Strategic Investment Corporation, the organization will pursue "investments that create win-win outcomes for both countries," South Korea's Ministry of Finance and Economy said in June.
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Ministry → dub → June
It's unclear whether South Korea would maintain any semblance of influence over the projects, as a normal primary investor would.
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investor → maintain → projects
Yet, the Seoul Economic Daily reports that a memorandum of understanding for the energy deal could be finalized as early as September 18.
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memorandum → report → September
Last October, Japan's trade ministry announced it would invest $550 billion in the U.S. in return for lower tariffs.
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it → announce → tariffs
As part of its deal, Japan agreed to play a role in the Trump administration's $80 billion buildout of Westinghouse's AP1000 nuclear reactors across the United States, which could be financially lucrative for the federal government.
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which → agree → government
There's a particular irony in the president using tariffs to cudgel South Korea into investing billions in the U.S. when the initial trade agreement gives preference to Korean vendors and project managers, a move that would seemingly increase imports of goods and skilled workers from Korea.
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that → be → Korea
(It may also increase the trade deficit with South Korea, upending one of Trump's many justifications for imposing tariffs in the first place.)
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It → increase → place
But while the Journal has chalked up the deal as "a win for Trump," this victory could be particularly costly for one of America's closest trading partners.
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victory → chalk → partners
Given the realities of building a nuclear power plant in the U.S.—it cost $35 billion to build two AP1000s in Georgia—financing eight nuclear power plants and a natural-gas project will likely exceed the $100 billion that South Korea earmarked for American energy projects last October.
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Korea → give → projects
The two countries have already revised initial estimates for the energy projects, with expected costs for a natural-gas plant in Encinal, Texas, around $22 billion, up from $20 billion, and the eight nuclear power plants totaling $120 billion, per the Seoul Economic Daily.
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countries → revise → Daily
The outlet reports that "because including all of the projects requested by the U.S. could push the total beyond the $200 billion set aside for strategic investment, the government is also weighing adjusting the investment size for each project or excluding some of them."
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government → report → them
A multibillion-dollar investment in the domestic AI industry would be a coup for the Trump administration's stated objective to have America dominate the sector.
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America → state → sector
However, the president's victory could just as easily have come about from a trade agreement between the two countries that didn't involve the U.S. bullying South Korea with the threat of tariffs.
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U.S. → come → tariffs
The Aporia
