South Korea’s planned $200 billion investment in U.S. energy projects is not yet fully committed, with Seoul saying participation in some projects will depend on their commercial viability.
The package, announced by the two countries on Wednesday, includes nuclear power plants, a natural gas facility in Texas and a potential investment in the long-planned Alaska liquefied natural gas project.
President Donald Trump said in a Truth Social post that the U.S. and South Korea had agreed to work on the Alaska LNG project, putting its value at $50 billion. South Korean President Lee Jae Myung, however, said Thursday that participation would depend on financial viability and legal compliance.
Lee also said investments in U.S. nuclear power plants would be assessed individually based on their commercial viability.
Alaska LNG Project Remains Subject to Review
The joint statement from the two countries said work on the Alaska LNG project would proceed only if it met standards of “commercial reasonableness.” It did not specify how much of the investment package would ultimately be allocated to the project.
The proposed Alaska LNG development would transport natural gas about 1,300 kilometers from Alaska’s North Slope to the southern part of the state, where it would be liquefied for export to markets including Asia. The project has faced longstanding concerns over its economics because of the large upfront investment required.
South Korea’s Industry Minister Kim Jung-kwan described the project as “high-risk” last year and said participation would be difficult unless it could generate sufficient cash flow.
The distinction matters because the headline $200 billion figure represents a broader investment plan rather than $200 billion in fully committed spending across every project.
The package includes $22.3 billion for a 6,472-megawatt natural gas power facility in Encinal, Texas, which will provide electricity to co-located data centers. Related Cos. and NextEra Energy will lead the project, with the first phase expected to begin commercial operations in 2029 and the full facility scheduled to come online in stages through 2032.
The countries also said they would seek greater participation by Korean companies in equipment supply, engineering, construction and long-term operations and maintenance for the Texas project.
Another $120 billion is allocated to plans for eight large-scale nuclear reactors in the U.S., including $100 billion for construction and $20 billion in contingency reserves.
The nuclear agreement was signed by both governments, Westinghouse Electric, Korea Electric Power Corp. and Korea Hydro & Nuclear Power. Korean companies are also expected to pursue a potential significant minority investment in Westinghouse, although the terms remain subject to commercial negotiations.
