As the economy becomes the central topic leading up to the crucial US midterms, President Donald Trump has announced plans proposed by South Korea to invest approximately USD 200 billion in the country.
However, as per Seoul’s version, the USD 54 billion pipeline for the Alaska LNG project hasn’t seen much progress.
The Wednesday announcement from the White House came under a broader USD 350 billion strategic investment package, which the East Asian country made as part of a trade agreement with Washington in 2025.
The package included USD 150 billion for shipbuilding and USD 200 billion for strategic investments.
“Thanks to the agreements my administration has secured with the Republic of Korea, they will invest up to USD 200 billion,” Trump said from the Oval Office.
As per the Republican, the investment would include the construction of eight large-scale nuclear power plants, a natural gas pipeline, and a six-gigawatt power generation facility in Texas.
The pipeline project could carry political significance in Alaska, where Republican Senator Dan Sullivan faces a competitive reelection race against Democrat Mary Peltola.
South Korea’s government, however, said the pipeline project would only go forward if certain commercial and legal conditions are met.
However, Seoul confirmed the remaining elements of Trump’s announcement, saying it would invest USD 22.3 billion in a gas power project in Texas to power AI data centers, as well as USD 120 billion to build the nuclear reactors.
“South Korea will begin reviewing the Alaska LNG project to assess its commercial viability and compliance with legal procedures,” Seoul’s industry ministry said in a statement.
“No decision has been made on whether to invest or on the size of the investment,” the department added.
There was a fair bit of controversy as well, with South Korea’s Industry Minister Kim Jung-kwan telling a media briefing that he had expressed regret to US Commerce Secretary Howard Lutnick over the White House announcement, as it went beyond what had been agreed between Washington and Seoul.
South Korean President Lee Jae Myung also said in a post on popular micro-blogging platform X that the commercial viability of both the LNG project and the nuclear reactors must be confirmed before they proceed.
The foreign ministry, from its part, said it hoped the investment announcement would lead to progress in discussions in security and other areas.
The Alaska LNG project involves the building of an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska’s southern coast, allowing the fuel to be shipped to Asian markets.
The project is designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, as per the White House.
While Trump has repeatedly promoted the project as a way to expand US energy exports and strengthen ties with allies, including South Korea and Japan, uncertainties over commercial viability, cost, and financing have affected the pipeline’s progress.
Japan’s two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined two million metric tons a year from Alaska LNG if it is built.
Glenfarne, Alaska LNG’s key developer, welcomed Trump’s investment announcement.
The venture has already lined up commitments for 13 million tons a year but needs another three million tons to support a final investment decision and make the commitments binding.
The eight nuclear plants would form part of Trump’s effort to expand US nuclear generation as electricity demand rises, including from data centers and manufacturing.
The Texas gas-fired power project, on the other hand, will be powering energy-intensive facilities, including semiconductor plants and data centers.