Korea’s $200 billion U.S. investment plan got a late overhaul as nuclear, Alaska LNG were added
Ministry documents show nuclear reactors and Alaska LNG replaced two reviewed projects in Korea's $200 billion U.S. investment plan without new feasibility studies.
Kim Jung-kwan, Korea's minister of trade, industry and resources, speaks during a meeting on resource security in central Seoul on Sept. 22.MINISTRY OF TRADE, INDUSTRY AND RESOURCES
Korea's government quietly replaced two of the three projects in its $200 billion U.S. investment plan with nuclear reactors and an Alaska liquefied natural gas (LNG) venture just months before briefing lawmakers, without putting the new additions through the feasibility reviews the original projects had undergone, according to ministry documents obtained by an opposition lawmaker on Tuesday.
The government had confirmed the construction of the Encinal gas-fired combined-cycle power plant in Texas as the first U.S. investment project during a briefing by First Vice Minister of Economy and Finance Lee Hyoung-il and Minister of Trade, Industry and Resources Kim Jung-kwan at the National Assembly behind closed doors on Sept. 22.
The briefing also said it was considering a “nuclear framework” that included the construction of eight large nuclear reactors in the United States as the second project and an Alaska LNG development project as the third.
But a review of Industry Ministry documents by Rep. Choi Soo-jin of the main opposition People Power Party found that the nuclear project and Alaska LNG development were not originally considered as potential U.S. investments.
Internal ministry documents show that the government formed a preliminary review team for Korea-U. S. strategic investment projects on March 18. It then commissioned an external advisory study on April 12 to assess the feasibility of the first project, the Texas power plant.
The government later requested a contract on May 28 for a feasibility review and negotiation support study covering three Korea-U. S. strategic investment projects. Once a contractor was selected on June 16, the government completed all administrative procedures — including an internal audit request, a response to the audit opinion and contract guidance — in a single day.
The feasibility review therefore began three months before the National Assembly briefing. But among the three projects covered by the study, the two undisclosed projects aside from the Texas power plant were not selected for U.S. investment.
Rep. Choi Soo-jin of the main opposition People Power Party speaks at a press briefing at the National Assembly in Yeongdeungpo District, western Seoul, on July 26.YONHAP
The original second and third projects, which had been undergoing feasibility reviews behind closed doors, were replaced within three months by the nuclear and Alaska LNG projects.
“Several projects were discussed as part of the U.S. investment plan, and during that process new projects were added while existing ones were dropped,” an Industry Ministry official told JoongAng Ilbo. “We cannot disclose what the two canceled projects were.”
“The government must report any major change during trade negotiations to the relevant National Assembly committee without delay under the Act on the Conclusion Procedure and Implementation of Commercial Treaties,” Rep. Choi said. “The Industry Ministry made major changes, including the last-minute addition of the Alaska LNG project even though it had not been included in the economic feasibility review, but did not report any of them to the National Assembly.”
Minister of Trade, Industry and Resources Kim Jung-kwan, left, and U.S. Secretary of Commerce Howard Lutnick pose for a commemorative photo at the G20 Innovation Ministers' Meeting held in Chapel Hill, North Carolina, on Sept. 2.MINISTRY OF TRADE, INDUSTRY AND RESOURCES
The lawmaker emphasized that the government also failed to disclose that two undisclosed projects had been pursued and then dropped.
“Putting projects that had not even undergone feasibility or economic reviews into a $200 billion U.S. investment plan amounts to a serious failure in trade policy and an abuse of administrative authority,” Rep. Choi added.
The Industry Ministry pushed back against the criticism.
“The two projects other than the Texas power plant have not yet reached the stage of a final investment decision, which is why they were not reported to the National Assembly,” an Industry Ministry official said. “If the nuclear and Alaska LNG projects are confirmed as follow-up projects, they will be reported to the National Assembly.”
Trump said at the White House on Wednesday that Korea would invest $54 billion in the Alaska LNG project. The project would transport natural gas about 800 miles from Alaska’s North Slope to the southern coast, where it would be liquefied and shipped to buyers in Asia.
The Korea-U. S. joint fact sheet, however, only says Korea will begin reviewing the project to determine whether it is commercially viable and complies with domestic law.
Seoul’s Trade Ministry later stressed that no decision had been made on whether Korea would invest in the pipeline or how much it might commit.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
