The discussion surrounding South Korea's investment in the Alaska liquefied natural gas (LNG) project continues to reveal differences between the U.S. and South Korea. While the U.S. has reiterated its commitment to the project, the South Korean government maintains that it will assess the commercial viability separately, even if a final investment decision (FID) is made.
According to local media Alaska Public Media, South Korean officials met with state legislators in Anchorage on October 7 to explain the government's review policy.
The report cited a participating lawmaker, Bill Velehowski, a Democrat in the Alaska State Senate, who stated that it was clear that South Korea had not yet decided to invest in the project.
In contrast, U.S. officials have expressed optimism about the project's potential. President Donald Trump highlighted the Alaska LNG project as part of South Korea's investment initiatives during an announcement on September 30. U.S. Secretary of Commerce Howard Lutnick also mentioned that investments exceeding $50 billion would be made in Alaska.
However, the official documents released by both countries indicate that they are 'beginning their review.' According to the strategic investment memorandum of understanding (MOU) between the U.S. and South Korea, the decision to proceed depends on meeting commercial rationality and domestic legal conditions. Glenfarne, the developer, must also finalize investment structures and complete the necessary procedures for the FID.
The South Korean government's key criterion is 'commercial rationality.' Minister of Trade, Industry and Energy Kim Jeong-kwan emphasized during a National Assembly audit on October 6 that 'our primary criterion is commercial rationality,' noting that this applies to negotiations with the U.S. and the U.S. investment law. This means that considerations of U.S.-Korea relations and energy security must be weighed alongside the risks and expected returns of the investment.
While the U.S. acknowledges the need for further discussions, it remains committed to the project. Vice President JD Vance visited Alaska on October 5, stating, 'We need to coordinate additional details with South Korea,' but expressed confidence, saying, 'We will get this done.' The following day, he appeared on local television, asserting, 'We will complete this project, whether under the current South Korean government or the next one.'
* This article has been translated by AI.
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