▲ Minister of Trade, Industry and Energy Kim Jeong-kwan explains the U.S. investment projects announced by U.S. President Donald Trump at the Government Complex-Sejong in Sejong City on October 1.
Minister of Trade, Industry and Energy Kim Jeong-kwan emphasized today (October 1) that commercial rationality must be a prerequisite for pushing forward with U.S. investment projects, including the Alaska LNG project.
During a briefing held at the Government Complex-Sejong this afternoon, Minister Kim stated, "South Korea and the United States share the understanding that the Alaska project will not be pursued without commercial rationality."
He explained that he expressed regret to U.S. Secretary of Commerce Howard Lutnick regarding U.S. President Donald Trump's announcement earlier in the day, which included unagreed-upon details such as formalizing South Korea's participation in the Alaska project.
Minister Kim stated, "I raised a strong objection to Secretary Lutnick," adding, "He responded by saying he understands South Korea's concerns and will do his best to ensure the project proceeds properly."
Among the U.S. investment projects, the only one confirmed to proceed is the construction of a USD 22.3 billion combined-cycle gas turbine power plant, while the construction of eight large-scale nuclear power plants in the U.S. and the Alaska project require further consultations, according to the government's stance.
In particular, regarding the Alaska project, the two countries have only reached an agreement at the level of "initiating a review" on whether to proceed with the venture.
The joint fact sheet released by the governments of both countries also notes, "The United States and South Korea have agreed to initiate a review of the Alaska LNG project, conditioned on commercial rationality and the fulfillment of all relevant domestic legal requirements pursuant to the strategic investment MOU."
Minister Kim drew a line, stating, "The contents agreed upon by the two countries regarding the Alaska project are entirely limited to the three sentences in the fact sheet," and "Numbers (investment scale) or expressions that sound definitive go far beyond what was agreed upon."
Previously, the Ministry of Trade, Industry and Energy also stated, "The Alaska LNG project means initiating a review based on commercial rationality and relevant domestic legal procedures under the memorandum of understanding (MOU)," adding, "Nothing has been determined regarding whether to invest or the scale of investment."
Minister Kim added, "The U.S. side has promised to take measures to enhance commercial viability and we have expectations," explaining that they are waiting for materials from the U.S. side reflecting this.
Should the project move forward, the U.S. is set to create favorable conditions for South Korean companies to participate, including benefits such as tariff reductions on related equipment like steel, while granting South Korea preferential access to LNG produced from the project.
The chronic obstacles to project progress, namely permitting and labor supply issues, are expected to be resolved by the federal government stepping in directly as the project operator rather than the private sector.
Minister Kim stated, "If the federal government can resolve the chronic issues of permitting and labor, we judge that there is room for project viability to improve compared to before, and we are waiting for the data."
Minister Kim explained that the construction sites for the nuclear power project have not been decided yet.
He said, "Various locations are being mentioned, which are states that want to build nuclear power plants," and added, "We expect them to be sent to us when the project progresses concretely. We will carefully examine profitability and impact to see which site is best."
Regarding this U.S. investment project, Minister Kim stated, "Beyond mere capital investment, we will make this an opportunity to expand new business opportunities for our companies, elevate industrial cooperation to the next level, and ultimately strengthen industrial competitiveness," adding, "We will continue to put national interests first and do our utmost to develop South Korea-U.S. trade relations into a stable and predictable relationship."
(Photo: Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.