Trump Announces South Korean Energy Investments as Seoul Urges Caution
The financing conditions highlight the gap between White House export ambitions and foreign investors seeking to limit exposure to costly infrastructure projects.
President Donald Trump announced on Wednesday that South Korea will invest up to 200 billion dollars in United States energy projects, including a proposed liquefied natural gas venture in Alaska. Speaking from the Oval Office, Trump said the funds would support eight nuclear reactors, a Texas power plant, and an Alaskan pipeline.
South Korean officials reacted cautiously to the remarks, noting that no final investment decision had been made regarding Alaska. The Ministry of Trade, Industry and Energy in Seoul stated that it must first verify the legal standing and commercial viability of the Alaska venture. South Korean Industry Minister Kim Jung-kwan said he conveyed regret to U.S. Commerce Secretary Howard Lutnick because the White House remarks went beyond prior bilateral understandings.
The Alaska LNG development includes an 807-mile pipeline running from the North Slope to a coastal export terminal. The terminal would produce up to 20 million metric tons of fuel per year for export, mainly to Asian buyers. U.S. officials estimate the cost of the pipeline and terminal at about 54 billion dollars.
The project has struggled for years to attract sufficient capital and commercial commitments. Developer Glenfarne Group has secured preliminary agreements for about 13 million tons per year. The company said it still needs additional firm customer agreements to reach a final investment decision.
The funding originates from a broader trade framework negotiated between Washington and Seoul in November 2025. That pact called for 350 billion dollars in South Korean spending, split between 150 billion dollars for shipbuilding and 200 billion dollars for strategic sectors. In exchange, Washington reduced tariffs on South Korean automobiles and parts to 15 percent.
Seoul confirmed its commitment to other projects covered by the pact. Those include 120 billion dollars for eight American nuclear reactors and 22.3 billion dollars for a natural gas power plant in Texas. South Korean investments under the broader package are capped at 20 billion dollars annually under bilateral terms.
Republican Senator Dan Sullivan of Alaska attended the White House presentation. Sullivan faces a competitive reelection campaign in November. Trump credited Sullivan for advancing the state project and stated the initiative would generate domestic construction jobs.
South Korean officials said technical teams will now conduct formal reviews of the pipeline proposal before deciding whether to submit funding requests to parliament.
