South Korea Puts $10B US Nuclear Payment Under Review

South Korea has said a planned $10 billion advance payment for a major US nuclear energy project will proceed only after a comprehensive commercial feasibility review, underscoring uncertainty surrounding Seoul's investment commitments to Washington.

Finance Minister Lee Hyoung-il told a parliamentary budget committee on Monday that the proposed transfer remained at a preliminary stage and would be carefully assessed before any funds were committed.

The payment forms part of South Korea's broader strategic investment framework with the United States, which includes nuclear power generation, energy infrastructure and shipbuilding.

Washington unveiled plans in September for the construction of eight large nuclear reactors in the United States, with a projected investment of $120 billion, including contingency funding.

The proposed $10 billion advance payment is intended to secure long-lead-time equipment needed for nuclear plant construction, including major reactor components.

However, Seoul has emphasized that the project's commercial viability and financial structure must be evaluated before the payment can proceed.

The announcement follows growing scrutiny of South Korea's overseas investment commitments and uncertainty over the implementation of bilateral economic agreements.

Industry Vice Minister Park Dong-il separately said the government would closely examine any potential participation in the Alaska liquefied natural gas project.

He stressed that no final investment decision had been made regarding the Alaska LNG development.

The nuclear and LNG projects form part of Washington's efforts to attract large-scale South Korean investment into American energy infrastructure.

Seoul's latest statements do not amount to a cancellation of either project but indicate that major financial commitments remain subject to further review.