Korea Pushes Back on Trump’s Alaska LNG Investment Announcement

South Korea has officially objected to U.S. President Donald Trump's announcement of a proposed $50 billion liquefied natural gas (LNG) investment project in Alaska, unless the project's commercial viability is assured. This response came just one day after Trump's declaration of a large-scale investment plan, which Korea had treated as finalized.

Kim Jung-kwan, the Minister of Trade, Industry and Energy, expressed concern during a briefing on October 1 that Trump's announcement exceeded the agreed-upon parameters of the Korean-US strategic cooperation. He lodged a strong objection with U.S. Secretary of Commerce Howard Lutnick, who reportedly acknowledged the Korean concerns.

The South Korean government's caution stems from the project's uncertain profitability and structural risk factors, including difficulties in securing workers due to Alaska's harsh climate and delays in licensing and permitting. The U.S. side has indicated its intention to shift the project structure to involve direct federal government participation, but these changes are still being assessed for their impact on the project's viability.

Meanwhile, discussions are ongoing about constructing eight nuclear reactors, with the APR1400 reactors planned to be pursued first. The project's site has not yet been determined, with several U.S. states expressing interest. To mitigate risks, the government has implemented a "risk pooling" structure, ensuring profit distribution until the investment principal and interest are recovered.

The Encinal gas combined-cycle power plant project in Texas is confirmed as the first project, with a $2.4 billion initial remittance already in progress. The negotiation process will be guided by national interest and historical context, according to Minister Kim.