President Trump on Wednesday announced plans for South Korea to invest $200 billion in U.S. projects, including a $54 billion liquefied natural gas initiative in Alaska and a $20 billion power plant in Texas.
The deals are the first major projects under a broader $350 billion strategic investment package that South Korea committed to as part of a deal with the Trump administration to secure lower U.S. tariffs on its automobiles, auto parts and other key exports. Of the total investment package, South Korea agreed to spend $150 billion on shipbuilding projects in the U.S.
In exchange, the Trump administration agreed to cap its tariffs on South Korean exports at 15%.
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Mr. Trump said the money involved in the Alaska and Texas projects is so large that if it wasn’t for the tariff deal, they likely would not have happened.
“They paid to get [tariffs] reduced and part of that money is going to this project. Otherwise, this project is so big, I don’t know, maybe the money wouldn’t be very easily available,” Mr. Trump said at an Oval Office event announcing the projects. “We make great deals.”
The announcement was made as part of a series of economic investment deals Mr. Trump is highlighting ahead of the November election. Mr. Trump is trying to emphasize economic wins to combat voter frustration over high gas prices and increased cost of living.
Sen. Dan Sullivan, Alaska Republican, attended the event in the Oval Office to highlight what the gas project means for his state. Mr. Sullivan is in a tough race for his seat against former Rep. Mary Peltola, a Democrat.
Ahead of Mr. Sullivan’s remarks, the president hailed him as “a spectacular senator.”
“He’s not just great for Alaska, he’s great for the world, for our country,” Mr. Trump said. “He’s got my ear.”
The Alaska LNG project would include an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska’s southern coast, enabling fuel to be shipped to Asian markets. It is expected to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.
The project has been in limbo for years because of concerns over its cost, financing and commercial viability. South Korea’s investment answered all those questions, with Seoul saying last year that its U.S. investments must meet certain commercial viability standards.
In Texas, South Korea is planning to build a 6-gigawatt gas power plant in the city of Encinal to supply electricity to AI data centers and semiconductor plants.
South Korea expects the plant to generate returns of about $43 billion to $45 billion, according to the country’s Yonhap News Agency. Ownership will be split equally between the U.S. and South Korea.
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