Lee Ties Alaska LNG Talks to Proof of Commercial Viability

Distances Seoul From U.S. Unilateral Announcement, Stressing Profitability Checks "Profits Split 50-50 Across All Projects Until Principal and Interest Are Repaid" Praises Industry Minister Kim Jung-kwan for "Good Results"

Politics|
| Updated 2026.10.01. 13:02:22
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By Song Jong-hojoist1894@sedaily.com
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President Lee Jae-myung delivers a commemorative address at the ceremony marking the 78th Armed Forces Day, held on the runway at Gyeryongdae in Gyeryong, Chungcheongnam-do, on Oct. 1. Photo by Kwon Wook - Seoul Economic Daily Politics News from South Korea
President Lee Jae-myung delivers a commemorative address at the ceremony marking the 78th Armed Forces Day, held on the runway at Gyeryongdae in Gyeryong, Chungcheongnam-do, on Oct. 1. Photo by Kwon Wook

Lee disclosed the outcome of the U.S. investment negotiations in a post on X (formerly Twitter) the same day. Citing investment in U.S. nuclear power plants as well, Lee said, "Here too, commercial viability must be guaranteed on a specific plant-by-plant basis." On profit distribution, he explained, "To minimize investment losses and guarantee repayment of principal and interest, profit distribution for all investment projects will be maintained at 50-50 — including for projects whose principal and interest have already been repaid — until the principal and interest of all investment projects have been recovered."

Under the existing agreement, investment profits were to be split 50-50 between the United States and Korea before repayment of principal and interest, and 90-10 afterward, suggesting that more favorable terms were secured in the area of distribution conditions. Lee also stressed, "I ask for your support for Industry, Trade and Resources Minister Kim Jung-kwan and the Office of the Trade Negotiations, who did their utmost in the U.S. investment negotiations under difficult circumstances and delivered good results."

Earlier, on Nov. 30 local time, U.S. President Donald Trump announced that Korea would invest more than $50 billion in the Alaska LNG project and participate in the construction of eight large nuclear power plants. The Korean government, however, has only confirmed a $22.3 billion project to build the Encinal combined-cycle gas power plant in Texas as its first project, leaving the Alaska and nuclear power projects as matters for later consultation. The Ministry of Trade, Industry and Energy also said the same day of the Alaska LNG project that "nothing has been decided regarding whether to invest or the scale of investment," adding, "We are beginning a review."

Original reporting by Song Jong-ho for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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