Trump Announces $200B South Korean US Investment, but Seoul Holds Back on Alaska Pipeline

President Trump said Wednesday that South Korea will invest up to $200 billion in US projects, including eight large nuclear power plants, a natural gas pipeline and a 6-gigawatt power facility in Texas. It is the first batch of major projects under the $350 billion package Seoul agreed to in last year’s trade deal, which also set aside $150 billion for shipbuilding.

Seoul Confirms Nuclear and Texas Projects

South Korea backed two parts of the plan: $120 billion for eight nuclear reactors and $22.3 billion for a Texas gas power plant in Encinal that would supply AI data centers, chip plants and other heavy users. President Lee Jae Myung said the commercial viability of the reactors must still be confirmed.

Alaska LNG Pipeline Investment Doubts

The $54 billion Alaska pipeline is where Seoul pulled back. Its industry ministry said no decision has been made on whether to invest or how much, and a review of commercial and legal terms will come first. Analysts in Seoul warned that differences over details could cause disputes between the allies.

Alaska LNG Project Details

The project would run an 807-mile pipeline from the North Slope to a liquefaction plant on Alaska’s southern coast. It is designed to carry about 3.9 billion cubic feet of gas a day and produce up to 20 million metric tons of LNG a year. Developer Glenfarne has commitments for 13 million tons annually and needs 3 million more before a final investment decision. Japan’s JERA and Tokyo Gas have signed preliminary deals for 2 million tons a year.

Political Stakes Before the Midterms

Trump is promoting deals like this ahead of November’s midterms, as voters worry about the Iran war and high gasoline prices. Alaska Senator Dan Sullivan, who faces Democrat Mary Peltola in a close race, attended the announcement.