The South Korean government will invest $200 billion in energy projects in the United States. This investment particularly includes $54 billion for a liquefied natural gas (LNG) pipeline project in Alaska, which U.S. President Donald Trump announced on Wednesday.
Liquefied Natural Gas Pipeline Project in Alaska
However, on Thursday, the Seoul government announced that a final decision on the Alaska LNG pipeline project has not yet been made, and this project will only proceed if certain conditions are met. The South Korean Ministry of Trade stated: "No decision has been made regarding investment in this project or the scale of any potential investment."
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Other Projects in Texas and Nuclear Energy Production
Trump also announced that South Korea will support a $22.3 billion project to build a natural gas power plant in Texas. This power plant is designed to supply electricity to artificial intelligence data centers. Meanwhile, South Korea has confirmed plans to invest $120 billion in the construction of eight nuclear reactors.
The South Korean Minister of Industry, Kim Jong-kwan, referred to his discussions with U.S. Secretary of Commerce, Howard Lutnick, and expressed regret that Trump's announcement has come forward. Additionally, South Korean President Lee Jae-myung stated in a post on social media platform X that the commercial viability of the LNG project and the nuclear reactors must be confirmed for these projects to proceed.
Last month, Lee described the negotiations regarding these projects as "very complex and difficult" and mentioned that some of Washington's conditions were "hard to accept" for him, although he did not provide further details.
The South Korean Ministry of Foreign Affairs has also expressed hope that the investment announcement will lead to progress in negotiations in other areas, particularly security. In this context, Trump referred to Seoul's insufficient support for the war with Iran and also mentioned his "very good relations" with North Korean dictator Kim Jong-un.
The trade agreement signed in July 2025 allows South Korea to invest $350 billion in the United States and increase purchases of U.S. energy products, while the United States has imposed a 15% tariff on South Korean imports to the U.S.
This announcement is the first set of major projects under that trade agreement, which includes $200 billion for strategic investments and $150 billion for shipbuilding. This announcement comes ahead of the November midterm elections, which are expected to reflect voters' concerns about high gasoline prices and the U.S. and Israel's war with Iran.
If the Alaska LNG project moves forward, an 800-mile (1300 kilometers) pipeline will transport natural gas from the northern slopes to a liquefaction facility near Anchorage on the southern coast of Alaska for shipment to Asian markets.
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