Trump may tout potential $54 billion Korean investment in Alaska despite Seoul’s doubts
Trump is expected to highlight a potential $54 billion Korean investment in an Alaska LNG pipeline project as a done deal to sway voters despite Seoul's unresolved concerns over its commercial viability.
U.S. President Donald Trump speaks to the media at the White House driveway following a luncheon for tech leaders in the East Room in Washington on Sept. 29.REUTERS/YONHAP
A $54 billion investment in an Alaska liquefied natural gas (LNG) project that Korea has yet to approve could soonbe publicly touted by U.S. President Donald Trump in an attempt to appeal to Alaska voters.
Trump is expected to unveil the investment as early as Wednesday, even though Seoul has left the project open for further negotiations with Washington amid questions about its commercial viability. That has fueled concerns that Trump could treat the unresolved proposal as a done deal and trumpet it to Alaska voters ahead of the November midterms.
Trump is scheduled to make an announcement with U.S. Commerce Secretary Howard Lutnick in the Oval Office at 3:30 p.m. Wednesday, according to a schedule released by the White House on Tuesday.
The White House offered no details on the announcement. But Bloomberg and Reuters reported, citing multiple sources, that Trump is set to unveil Korea’s $200 billion U.S. investment plan, centered on $54 billion for the Alaska LNG project. Alaska Republicans, including Sen. Dan Sullivan, Rep. Nick Begich and Gov. Mike Dunleavy, are also expected to attend the announcement event.
At the heart of the Alaska LNG project is a roughly 1,300-kilometer (808-mile) pipeline that would carry natural gas from the North Slope to the ice-free port of Nikiski near Anchorage for liquefaction and export.
“We […] launched a massive Alaskan pipeline project to export natural gas to Asia,” Trump said on Jan. 20. “We made a deal with South Korea and with Japan that gives us money the likes of which nobody’s ever seen before.”
In return for a tariff cut from 25 percent to 15 percent, Korea pledged last year to invest $350 billion in the United States, including $150 billion in shipbuilding and $200 billion in strategic sectors. The Trump administration has repeatedly pointed to the Alaska LNG project as a potential destination for a substantial portion of the strategic investments pledged by Seoul and Tokyo under their trade agreements with Washington.
However, the Korean government has taken a more guarded approach to the project. It instead named a $22.3 billion combined-cycle gas power plant project in Encinal, Texas, as the first project under its $200 billion investment package for the United States on Sept. 22.
Minister of Trade, Industry and Resources Kim Jung-kwan speaks at a resource security meeting held in central Seoul on Sept. 23.YONHAP
By contrast, the Alaska LNG project and the construction of eight large nuclear reactors, both strongly pursued by Washington, were left for later negotiations.
Seoul is still analyzing whether the Alaska LNG project makes commercial sense. Building a new pipeline across the bitterly cold state, along with liquefaction facilities, would push costs into the tens of billions of dollars. Securing steady LNG buyers for years to come poses another hurdle.
Korean Minister of Trade, Industry and Resources Kim Jung-kwan even described the Alaska LNG project as a “high-risk venture” at the National Assembly last year.
“Washington pressed hard for the Alaska LNG project, but my understanding is that the [memorandum of understanding] simply commits the two sides to ‘explore the possibility’ of pursuing it,” said a lawmaker on the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee. “Korea has left itself the option of not investing if the commercial case does not hold up.”
If Trump puts the LNG project at the center of his announcement, analysts say electoral politics may have been factored into the calculus. Trump won Alaska by 13 percentage points in 2024, but Republicans cannot take the state for granted this November because Sen. Sullivan, a Republican seeking a third term, is running neck and neck with Democrat Mary Peltola.
A render of the liquefied natural gas facility sought by the United StatesALASKA LNG
“You have Japan, you have South Korea,” Trump said on Sept. 2. “You have all of these people now going to Alaska to load up with fuel, load up with oil, build pipelines, everything else.” The remarks were made as Trump said he would go to Alaska personally to support Sullivan’s re-election bid.
“The planned announcement marks the latest example of Trump leveraging the power of the presidency — and his international dealmaking — to bolster Republicans ahead of the November midterm elections as candidates face major headwinds thanks to voter dissatisfaction with the economy,” Bloomberg reported.
Trump made a similar announcement on Monday when he unveiled plans by Mesabi Metallics, a unit of India’s Essar Group, to build a $15 billion steel mill in Iowa. Trump won Iowa by a wide margin in the last presidential election, but both its Senate and House races are closely contested between Republicans and Democrats this year.
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.
