A view of Alaska (Image courtesy of Pixabay/CCL)
SEJONG, Jan. 21 (Korea Bizwire) — President Donald Trump’s comments suggesting that South Korean investment funds could be used for an ambitious Alaska natural gas development project have sparked unease in Seoul, raising concerns that political rhetoric in Washington could complicate ongoing bilateral investment negotiations.
Speaking at the White House on Tuesday to mark the first anniversary of his return to office, Mr. Trump touted what he described as a major breakthrough in launching an Alaska pipeline project, saying that trade agreements with South Korea and Japan had secured “unprecedented levels of funding.”
The remarks appeared to refer to a $350 billion U.S.-bound investment package agreed to by the two governments last November. Of that amount, $150 billion is earmarked for shipbuilding, while the remaining $200 billion is intended for investments to be selected through a joint consultation process.
Mr. Trump’s comments were widely interpreted as signaling that a portion of those funds could be steered toward the long-stalled Alaska liquefied natural gas project — a centerpiece of his energy agenda.
The project envisions transporting gas from Alaska’s Prudhoe Bay through a roughly 1,300-kilometer pipeline to the southern port of Nikiski, where it would be liquefied and shipped to Asian markets. Initial cost estimates exceed $45 billion, though analysts say actual expenses could climb significantly due to the region’s permafrost terrain and environmental challenges.
The plan has been repeatedly delayed for decades amid cost concerns and environmental opposition, and major U.S. energy companies, including Exxon Mobil, have previously withdrawn from the venture, citing weak commercial viability.
South Korean officials have long categorized the project as high-risk and have resisted U.S. pressure to participate.
At a parliamentary hearing last year, Industry Minister Kim Jung-kwan described the Alaska pipeline as “a high-risk project,” saying Korea’s investment principles limit participation to ventures capable of generating stable cash flow.
Under the bilateral framework, investment targets are to be recommended by a U.S.-led investment committee only after prior consultation with a joint body chaired by South Korea’s industry minister, with explicit emphasis on “commercially viable projects.”
President Lee Jae-myung and U.S. President Donald Trump walk and talk as they move to the summit venue at the Gyeongju National Museum on Oct. 29. (Photo provided by the Presidential Office.)
Still, experts warned that Mr. Trump’s public remarks could create implicit pressure during working-level negotiations.
“His statement feels more like political messaging than the result of detailed consultations,” said Heo Yoon, a professor at Sogang University’s Graduate School of International Studies. “But it could resurface as leverage when investment discussions with the U.S. Commerce Department begin.”
South Korea’s government has sought to downplay the remarks, stressing that no formal proposal has been presented.
“Thus far, there has been no official request or agenda item raised through the investment committee,” an official at the Ministry of Trade, Industry and Energy said. The official added that even preliminary engineering data for the project had yet to be released, making substantive evaluation impossible.
“For now, there is simply no basis on which to assess participation,” the official said.
The episode underscores the growing tension between political signaling and commercial decision-making as Seoul navigates economic cooperation with Washington under the Democratic Party–led administration, while seeking to protect national investment principles amid shifting U.S. priorities.
M. H. Lee (mhlee@koreabizwire.com)
