Trump Warns South Korea of Higher Costs if It Rejects Alaska LNG Investment

US President Donald Trump has warned that South Korea could face higher costs if it declines to participate in the proposed Alaska liquefied natural gas (LNG) project, despite Seoul maintaining that its involvement has not yet been finalised.

Speaking to reporters at the White House, Trump defended his earlier announcement that South Korea would participate in the Alaska project. When asked about reports that Seoul had not formally approved the investment, he said he would be prepared to “charge” South Korea more if it decided against joining the project.

Trump subsequently told reporters to convey to Seoul that if it did not agree soon, he would “double it up”. He did not explain what specific charge or financial obligation he was referring to.

The comments came two days after Trump announced a package of South Korean investment projects in the United States under the countries’ bilateral trade agreement. The package includes the Alaska LNG project, a gas-fired power plant in Texas and plans for eight large-scale nuclear power plants.

South Korean officials, however, have said the Alaska LNG investment remains subject to further review, including assessments of its commercial viability and compliance with domestic legal procedures. Seoul has therefore not confirmed the investment in the terms announced by Trump.

US Commerce Secretary Howard Lutnick has put the potential South Korean investment in the Alaska project at more than $50 billion. The broader investment package announced by Trump forms part of a much larger economic arrangement between Washington and Seoul.

The Alaska LNG project is designed to transport natural gas from Alaska’s North Slope through a roughly 1,300-kilometre pipeline to a liquefaction and export facility in southern Alaska. The LNG would then be shipped to Asian markets, including South Korea and Japan.

The project has faced questions over its commercial viability. Reuters reported that its estimated cost of roughly $44.5 billion to $54.5 billion would make it substantially more expensive per unit of capacity than comparable LNG projects on the US Gulf Coast.

Meanwhile, a senior White House official has stressed the importance of closer shipbuilding cooperation with South Korea and Japan as Washington seeks to expand the US commercial shipbuilding sector and strengthen its naval-industrial capacity.

Russell Vought, director of the White House Office of Management and Budget, made the remarks at a forum in Washington, while also arguing that companies investing in US-based manufacturing and infrastructure should receive incentives.

The dispute over the Alaska LNG project comes as Washington and Seoul continue to work through the details of their broader trade and investment arrangements, with differences emerging over which proposed projects have been formally agreed and which remain subject to further negotiations.