Trump Pressures South Korea on Alaska LNG

President Trump holding up an executive order during a support rally in Alaska (AFP=Yonhap News Agency)  United States President Donald Trump formalized Taiwan's participation in the Alaska liquefied natural gas (LNG) development project, once again mentioning South Korea's massive investment commitment. During a rally supporting the midterm elections held in Wasilla, Alaska, on Oct. 13 (local time), President Trump stated that Taiwan agreed to purchase 30% of the Alaska pipeline's production over the next 20 years and invest $4.4 billion (approximately 5 trillion 900 billion won). President Trump evaluated this agreement as one of the largest deals in history that guarantees the success of the project. In particular, he made South Korea's participation an established fact by explaining that Taiwan's investment is in addition to the $50 billion (approximately 67 trillion won) that South Korea has already promised. Previously, President Trump announced at the end of September that South Korea decided to invest more than $50 billion in the Alaska LNG project, but the South Korean government maintains a cautious stance that the investment has not been confirmed to date. Secretary of Commerce Howard Lutnick, who joined him on the rally stage, increased the level of pressure by specifying the scale of South Korea's investment more concretely. Secretary Lutnick claimed that President Trump elevated the LNG project to a federal-level project, asserting that South Korea promised to invest $50.1 billion in the construction of the gas pipeline. This figure is $100 million higher than the $50 billion previously mentioned by President Trump, which is interpreted as an intention to highlight that South Korea's investment was drawn out through tariff negotiations and other means. Regarding the background of the agreement with Taiwan, Secretary Lutnick also explained that it was the result of a week of consultations under the direction of President Trump. He emphasized that this project is a core federal government initiative by chanting the slogan 'build the gas pipeline' along with the audience. Behind President Trump's focus on the Alaska LNG project is the midterm election in November, which is approaching in three weeks. Alaska is currently a major battleground where the Republican Party and the Democratic Party are fiercely competing over a Senate seat. To support Senator Dan Sullivan, who is seeking reelection, President Trump set out to win over voters by introducing this project as the largest energy infrastructure project in Alaska's history. Specific ripple effects on the local economy were also presented. President Trump claimed that the construction of the gas pipeline would create more than 13,000 jobs and allow average households in Alaska to save more than $2,000 in energy costs annually. Highlighting that immediate construction is possible as all administrative permits have been completed, he also added a warning that the project would be suspended if the Democratic candidate is elected. Despite President Trump's repeated remarks confirming the investment, the South Korean government is currently maintaining a cautious attitude regarding whether an official agreement has been reached. In a situation where President Trump has applied pressure by stating he would charge greater costs if South Korea does not step up to invest, the future process of additional negotiations is expected to be a variable until the actual execution of the investment.