South Korea’s “historic” $200 billion investment commitment to the United States, which President Donald Trump said would reshape the country “for generations,” is not yet fully finalized.
The package covers nuclear power plants, a natural gas facility in Texas and possible participation in the long-planned Alaska LNG project.
In a Truth Social post late Wednesday in the United States, Trump said the two countries had agreed to pursue the Alaska LNG project and valued it at $50 billion. South Korean President Lee Jae Myung later stressed that participation in some of the projects would depend on commercial considerations.
In a post on X early Thursday local time, Lee said South Korean involvement in Alaska LNG would hinge on the project’s financial viability and compliance with legal requirements. He also said investments in nuclear plants would need to be evaluated individually for their commercial feasibility.
Trump had highlighted the proposed investments in his Wednesday post, saying the countries had agreed to work together on the Alaska LNG project, which he valued at $50 billion.
However, a joint statement issued earlier that day said work on the project would proceed only if it met standards of “commercial reasonableness.” The statement did not specify how much of the investment package would be allocated to Alaska LNG.
The Alaska LNG project would move natural gas about 1,300 kilometers from fields on Alaska’s North Slope to the southern part of the state, where it would be liquefied and exported to markets including Asia, Yonhap reported. The plan has long faced questions over its economics because of the substantial upfront investment required.
Industry Minister Kim Jung-kwan called the project “high-risk” last year, saying South Korea’s participation would be difficult unless it could generate sufficient cash flow.
The broader package includes $22.3 billion for a 6,472-megawatt natural gas power facility in Encinal, Texas. The plant will provide electricity to data centers located at the site and will be developed by Related Companies and U.S. power company NextEra Energy. Its first phase is expected to begin commercial operations in 2029, with the full facility scheduled to come online in stages by 2032.
Trump said South Korea’s commitments would lead to “huge construction projects” and create “tens of thousands of American jobs.”
“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”
The two governments said they would work to expand South Korean companies’ role in the Texas project, including equipment supply, engineering, construction and long-term operations and maintenance. The United States also plans to give Korean companies opportunities to supply equipment, including turbines, for similar projects nationwide.
A further $120 billion is earmarked for plans to build eight large-scale nuclear reactors in the United States. The allocation includes $100 billion for construction and $20 billion in contingency reserves.
The nuclear agreement was signed by the two governments, Westinghouse Electric, Korea Electric Power Corp. and Korea Hydro & Nuclear Power. It also calls for South Korean companies to explore a potentially significant minority investment in Westinghouse, though the terms remain subject to commercial negotiations.
