South Korea and the United States have agreed to set aside up to $20 billion, or about 27 trillion won, as a cost-overrun buffer for eight nuclear reactors planned in the U.S. under Seoul’s strategic investment package. The broader framework carries an estimated project cost of $120 billion and includes six AP1000 units from Westinghouse Electric Co. and two Korean-designed APR1400 units. If the reactors are completed within the $100 billion construction budget and the reserve is unused, Washington would still count the $20 billion as Korean investment in the U.S. If costs rise, additional expenses would be allocated according to fault under contracts between the project operator and engineering, procurement and construction contractors. The Korean government would not automatically have to provide more funds, even if overruns exceed $20 billion. The arrangement reflects concerns highlighted by Japan’s earlier U.S. investment talks, where responsibility for overruns was not clearly defined. Seoul plans to assess the commercial rationale of each project before making final investment decisions.