Trump Demands Faster South Korea Investment in Alaska LNG Project

U.S. President Donald Trump has ramped up pressure on South Korea to speed up investment in the Alaska liquefied natural gas (LNG) project, warning that delays could lead to higher costs. However, South Korea has yet to finalize a $54 billion commitment, citing concerns over the project's profitability, costs, and commercial viability.

Trump, speaking to reporters on October 2, suggested that South Korea could face increased financial obligations if an agreement isn't reached soon. “If they don’t want to do it, that’s OK with me. I’ll just charge them more,” he said, though he did not specify which costs would rise.

This latest move comes amid broader trade tensions between Washington and Seoul. Trump has previously threatened to raise tariffs on South Korean goods from 15% to 25%, while the U.S. Trade Representative is investigating certain South Korean products under Section 301 measures.

South Korea's Ministry of Trade, Industry and Energy has clarified that discussions have only covered the project's commercial viability, not a finalized investment. Trade Minister Kim Jung-kwan expressed concerns over discrepancies between Trump's public statements and the actual negotiations.

The Alaska LNG project involves a 1,300-kilometer pipeline connecting natural gas resources to export facilities. While it could diversify South Korea's energy supply, experts warn of potential cost overruns due to challenging terrain and labor shortages. Seoul is seeking contractual safeguards to ensure financial defensibility before committing further.

Industry analysts note that a 20% increase in construction costs could require over $10 billion in additional funding, further reducing investment returns. The outcome of the feasibility review and ongoing trade discussions will shape future investment decisions and bilateral relations.