Donald Trump revealed that South Korea will invest $200 billion in various U.S. projects, including building a natural gas pipeline in Alaska, but South Korea argued that the matter has not been finalized.
On 1 Oct 2026, U.S. President Donald Trump announced that South Korea will invest up to $200 billion in various U.S. projects as part of a $350 billion trade agreement, covering the construction of eight nuclear power plants, a natural gas pipeline in Alaska, and a 6-gigawatt gas power plant in Texas.
This is expected to be Trump's effort to highlight economic and investment achievements ahead of the U.S. midterm elections in November, aiming to ease pressure from oil price issues and the Iran war, as well as boost Republican support in Alaska.
However, following Trump's announcement, the South Korean government quickly clarified that the $54 billion Alaska LNG pipeline project “has not been finalized” and requires evaluation of commercial feasibility and legal issues first.
Kim Jong-gwan, South Korea's Minister of Trade, Industry and Energy, stated they expressed dissatisfaction with the U.S. Secretary of Commerce because the White House disclosed information beyond the discussed agreement. Similarly, President Lee Jae-myung emphasized that cost-effectiveness must be confirmed before proceeding.
Other projects that South Korea has confirmed for actual investment include a $22.3 billion gas power plant in Texas aimed at supplying electricity to AI data centers and semiconductor manufacturing plants.
Another project involves building eight nuclear power plants with an investment of $120 billion to meet the increasing electricity demand in the U.S.
Analysts believe that discrepancies in the agreement details between the U.S. and South Korea could lead to disputes and conflicts between the allied countries when implementing the plans.
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Source:cna