Trump Announces $200bn South Korean Investment in US Energy Sector

President Donald Trump has announced $200 billion in planned investments from South Korea, including a major $54 billion liquefied natural gas (LNG) project in Alaska.

Trump made the announcement at the White House on Wednesday, September 30, 2026, as his administration seeks to highlight its economic record ahead of the November midterm elections.

The proposed investments are part of a broader trade and investment agreement between the United States and South Korea, under which Seoul committed to invest $200 billion in strategic sectors in the US.

“We’re thrilled to announce one of the largest energy infrastructure investments in American history,” Trump said during the White House event.

The president was joined by US Commerce Secretary Howard Lutnick, Interior Secretary Doug Burgum and Alaska Senator Dan Sullivan, a Republican who is facing a competitive Senate race in the November 3 election.

Trump praised Sullivan for his role in advancing the Alaska energy project, saying the senator had worked for years to move the proposal forward.

“Dan Sullivan, the senator of Alaska, has been a great senator, and he’s been working on this deal and other deals in Alaska, the pipeline, for almost 20 years. And we’re now getting it done,” Trump said.

The Alaska project involves the construction of a natural gas pipeline stretching approximately 1,300 kilometres (807 miles), connecting the gas-rich North Slope region near the Arctic Ocean to an LNG export terminal in the southern part of the state.

Sullivan said the project could provide relatively low-cost energy for decades and estimated that about 12,000 jobs would be created during its construction.

“This is going to be the biggest LNG project in our country,” Sullivan said, adding that the gas would first serve Alaskans and the US military before being supplied to American allies in Asia.

South Korean Investments Across the US

The newly announced investments form part of a $350 billion trade and investment agreement reached between Washington and Seoul last November.

Under the agreement, the United States reduced tariffs on South Korean automobiles, auto parts and other products, while South Korea committed $150 billion towards US shipbuilding and another $200 billion for strategic investments in the American economy.

South Korea is one of the world’s largest LNG importers, ranking behind China and Japan.

The White House announcement also included investment plans involving nuclear power plants and a proposed 6-gigawatt power generation facility in Texas.

The Texas project is planned for Encinal in the southwestern part of the state and was identified by South Korea’s Ministry of Trade, Industry and Resources as the first project selected under Seoul’s $200 billion strategic investment programme.

The announcement comes as political competition intensifies ahead of the US midterm elections, with Democrats seeking to gain control of both chambers of Congress.

Alaska and Texas are among Republican-leaning states where closely contested Senate races could influence the balance of power in Washington.

US-South Korea Relations

The investment announcement also comes amid changes in relations between Washington and Seoul.

South Korea has traditionally been one of the United States’ key allies in the Asia-Pacific region, particularly in efforts to counter security threats from North Korea and the growing influence of China.

However, relations have faced tensions in recent months, including disagreements over regional security and South Korea’s position on the US-Israel conflict with Iran.

Trump announced in August that his administration would reduce some military exercises with South Korea, citing several considerations, including concerns about Seoul’s level of support for US policy toward Iran.

Public sentiment towards the United States has also reportedly weakened in South Korea.

A Pew Research Center survey earlier this year found that a majority of South Koreans surveyed held an unfavourable view of the US, marking a significant change from previous years.

Despite these developments, some US lawmakers have called for Washington to maintain strong relations with Seoul as a strategic counterweight to China’s growing influence in the Asia-Pacific region.

Republican Congressman John Moolenaar of Michigan, in a letter issued ahead of Wednesday’s White House announcement, described the US-South Korea alliance as “indispensable” while urging greater attention to Seoul’s expanding ties with Beijing.

The latest investment commitments therefore come at a time when Washington is seeking to strengthen economic ties with South Korea while also navigating broader trade, energy and geopolitical interests in the Asia-Pacific region.

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