South Korea’s $200 billion investment in the United States, which President Donald Trump said would change the country “for generations,” is not a complete deal.
South Korea’s investment plans include a nuclear power plant, a natural gas power facility in Texas, and the possibility of a long-planned Alaska LNG project.
President Trump posted on his U.S. side Truth social late Wednesday that the two countries had agreed to work on the Alaska LNG project, setting its value at $50 billion, drawing a response from South Korean President Lee Jae-myung, who stressed that involvement in some projects was still subject to commercial consideration.
Lee told XPost on Thursday local time that participation in the Alaska LNG project depends on financial viability and regulatory compliance. He added that investing in nuclear power plants would also require an assessment of the commercial feasibility of each power plant.
President Trump welcomed the South Korean investment late Wednesday in his post in the United States, saying the two countries had agreed to work on the Alaska LNG project, whose value is set at $50 billion.
However, a joint statement earlier Wednesday said work on the project would be subject to “commercial rationality” and did not highlight details of the allocation to the project.
The Alaska LNG project aims to transport natural gas about 1,300 kilometers from oil fields on Alaska’s northern slopes to the southern part of the state, where it will be liquefied and exported to markets including Asia, Yonhap News reported. The project has long faced questions about its economics, given the large upfront investment required.
Industry Minister Kim Joong-kwan last year described it as “high risk” and said it would be difficult to participate unless sufficient cash flow could be generated.
In all, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power generation facility in Encinal, Texas, to power a co-located data center. The project will be led by affiliates of the developer and U.S. utility NextEra Energy, with the first phase expected to begin commercial operations in 2029, with the entire facility coming online in stages by 2032.
President Trump said the investment would turn South Korea’s pledge into a “massive construction project” that would create “tens of thousands of American jobs.”
“These are big energy projects that will add to America’s power capacity,” President Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”
The two countries said they aim to expand the participation of Korean companies in the Texas project in the areas of equipment supply, engineering, construction, and long-term operation and maintenance. The United States also intends to give South Korean companies the opportunity to supply turbines and other equipment for similar projects in the country.
Another $120 billion has been earmarked for plans for eight large nuclear reactors in the United States. Of that amount, $100 billion will go toward construction costs and $20 billion will go toward contingency reserves.
In addition to the governments of both countries, the nuclear power agreement was signed by Westinghouse Electric, Korea Electric Power Corporation, and Korea Hydro and Nuclear Power. The plan also calls for the Korean company to pursue a potentially significant minority investment in Westinghouse, the terms of which are subject to commercial negotiations.
