Finance Minister Lee Hyoung-il takes an oath during a National Assembly audit in western Seoul, on Oct. 6.YONHAP
Korea has transferred $2.4 billion to Washington as part of its funding for a Texas energy project agreed upon by the two countries under Seoul's investment initiative, the finance minister confirmed Tuesday.
Responding to a lawmaker's question about whether the transfer had been made during a parliamentary audit, Finance Minister Lee Hyoung-il replied “yes,” acknowledging around 10 percent of the project's estimated budget was sent to the United States on Thursday.
The gas-fired combined-cycle power plant project in Texas, dubbed “Project Star,” calls for the construction of a 6,472-megawatt power plant for AI data centers at a cost of $22.3 billion.
The Ministry of Trade, Industry and Resources recently announced three projects under Korea's investment pledge to the United States, unveiled last year in return for lower tariffs. The pledge comprises $150 billion for shipbuilding cooperation and $200 billion for projects in various strategic sectors.
Lee said the Texas project met the requirement for commercial viability, responding to Rep. Lim Lee-ja of the main opposition People Power Party, who argued parliamentary approval would be necessary if the project were not commercially viable.
Touching on “Project North,” which centers on reviewing the possible construction of a pipeline and a terminal for the liquefied natural gas (LNG) industry in Alaska, Lee said the project is currently under review.
U.S. Vice President JD Vance speaks to reporters before boarding Air Force Two to travel to Alaska, at Joint Base Andrews, Maryland in the United States, on Oct. 5.REUTERS/YONHAP
“A review of [Project North] is currently in progress, and we need to assess its commercial viability,” Lee said.
The Donald Trump administration announced Korea would invest $54 billion in the Alaska LNG project as part of a broader $200 billion investment in U.S. energy projects.
Korea's industry ministry, however, said it had not yet decided whether to invest in the Alaska LNG project, stressing that the project's commercial viability and other factors would need to be reviewed first.
The LNG project involves the construction of a 1,298-kilometer (807-mile) pipeline from the North Slope, which has massive proven natural gas reserves, to southern Alaska, where the gas would be liquefied for shipment to Asia.
U.S. Vice President JD Vance later said Monday that the United States and Korea still need to “work out” details of the Alaska project while expressing confidence that the project will ultimately move forward amid strong Asian demand for U.S. gas.
