South Korea’s planned $200 billion investment in the United States is not fully guaranteed, despite US President Donald Trump describing the package as a transformation that would benefit America “for generations”. South Korean President Lee Jae Myung has said participation in several major projects, including the long-planned Alaska LNG development and nuclear power plants, remains dependent on commercial considerations.
Trump said in a Truth Social post late on Wednesday that the United States and South Korea had agreed to work on the Alaska LNG project, which he valued at $50 billion. But Lee, writing on X on Thursday, said South Korean participation would depend on the project’s financial viability and compliance with legal requirements. He also said investments in nuclear power plants would have to be assessed individually for their commercial viability.
The qualification was reflected in the joint statement issued by the two countries earlier on Wednesday, which said work on the Alaska LNG project would be contingent on “commercial reasonableness”. The statement did not specify allocations for the project, despite Trump subsequently highlighting the $50 billion figure.
The Alaska LNG project is intended to transport natural gas about 1,300 kilometres from fields on Alaska’s North Slope to the southern part of the state, where it would be liquefied for export to markets including Asia, according to Yonhap. The project has faced longstanding concerns over its economics because of the large upfront investment required. South Korea’s Industry Minister Kim Jung-kwan described the project as “high-risk” last year and said participation would be difficult unless it could generate sufficient cash flow.
The broader investment package includes $22.3 billion for a 6,472-megawatt natural gas power facility in Encinal, Texas. The plant is intended to supply electricity to data centres located alongside the facility. The project will be led by Related Companies and US power company NextEra Energy, with its first phase expected to begin commercial operations in 2029 and the full facility scheduled to come online in stages by 2032.
Trump said the commitments would become “huge construction projects” and create “tens of thousands of American jobs”. “These are massive energy projects, adding power capacity in the United States,” he said. “This is new construction, new manufacturing, and great jobs for American workers.”
The United States and South Korea also agreed to seek greater participation by Korean companies in the Texas project, including equipment supply, engineering and construction, as well as long-term operations and maintenance. Washington also intends to provide Korean companies with opportunities to supply equipment, including turbines, for similar projects elsewhere in the United States.
The largest allocation is $120 billion for plans to build eight large-scale nuclear reactors in the United States. Of that amount, $100 billion is designated for construction costs and $20 billion for contingency reserves. The nuclear agreement was signed by the two governments alongside Westinghouse Electric, Korea Electric Power Corp. and Korea Hydro & Nuclear Power.
The nuclear plan also includes pursuing a potential significant minority investment in Westinghouse by Korean companies, although the terms of that investment remain subject to commercial negotiations.
