Key points
- Trump could pick Korea's first US projects as soon as Wednesday
- About $54 billion could go to Alaska LNG, sources told Reuters
- Payment would come no sooner than 45 business days after notice
President Donald Trump could name the first projects to receive money from Korea's $200 billion US investment fund as soon as Wednesday. About $54 billion could go to Alaska LNG, Reuters reported on September 29, citing two people familiar with the talks. News1 (뉴스1) was among the Korean outlets that carried the report.
Korea committed the money under last year's trade deal, with cash payments capped at $20 billion a year. As we reported on September 20, none had been spent yet. A project announcement would start the next stage, but payment would still be weeks away.
What Korea has proposed
Korea has proposed starting with a gas-fired power plant in Encinal, Texas. The plant would have 6,472 megawatts of capacity and cost an estimated $22.3 billion.
The government outlined that proposal in a closed-door briefing to the National Assembly's industry committee on September 22. Eight large US nuclear reactors and Alaska LNG were listed as later projects requiring more talks, Asia Business Daily (아시아경제) reported.
The briefing completed that stage of Korea's review. As of September 28, Washington had not announced a selection, though the Korean government said no new issues had arisen.
When Korea would pay
Under the two countries' memorandum of understanding, a US investment committee recommends projects and Trump makes the final choice. Korea can give its views before that decision, including through a joint committee led by Industry Minister Kim Jung-kwan (김정관).
Payment would come no sooner than 45 business days after Korea receives notice of Trump's choice. A Korean steering committee must also approve the final investment and release of funds.
Why Alaska is the hard part
The Alaska LNG plan would carry natural gas by pipeline from northern Alaska to a port in the south, where it would be chilled into liquid and shipped to Asia. Reuters described the $54 billion as money from Korea's fund for the project. Our September 20 piece described the whole Alaska plan as a $44 billion project. The reports don't explain the difference.
Kim has called Alaska LNG a "high-risk business" and told lawmakers the costs make it hard to be sure the project makes commercial sense.
Kim Jung-kwan's comment is translated from Korean.
