US President Donald Trump said the economic deal with South Korea has expanded to include an $8.4 billion investment in an enhanced oil recovery project, highlighting the initiative as part of his push for greater US energy production.
“The Republic of Korea Deal keeps getting BETTER! 8.4 Billion Dollars for an enhanced Oil Recovery Project,” Trump said in a post on Truth Social. “Producing more Oil and Gas means American Energy Dominance and Energy Security in the World for the Future!”
Trump's announcement comes against the backdrop of a broader investment and trade arrangement between Washington and Seoul, with South Korea expected to commit hundreds of billions of dollars to projects in the US.
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Reuters reported that Trump had on Wednesday outlined plans for South Korea to invest about $200 billion in US projects. The announcement included several major energy and infrastructure initiatives, including nuclear power plants, a natural gas pipeline and a 6-gigawatt power generation facility in Texas.
The latest oil recovery investment adds another energy component to the package, with Trump framing increased oil and gas production as a way to strengthen US energy security.
The announcement follows a broader strategic investment package worth $350 billion that South Korea agreed to as part of a trade agreement with the US last year. The package includes $150 billion earmarked for shipbuilding and another $200 billion for strategic investments.
One of the projects highlighted by Trump is an LNG pipeline in Alaska, which has an estimated value of $54 billion. However, Seoul has indicated that the project is not yet guaranteed.
South Korea's industry ministry said the Alaska LNG project would be reviewed for commercial viability and compliance with legal procedures. The project would proceed only if certain commercial and legal conditions are met, according to the Reuters report.
The Alaska project has also attracted political attention in the US. Its potential significance is particularly notable in the state, where Republican Senator Dan Sullivan is facing a competitive re-election race against Democrat Mary Peltola. Sullivan attended Wednesday's announcement.
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Trump has increasingly highlighted investment and energy-related announcements as part of his economic agenda. His latest Truth Social post puts the $8.4 billion oil recovery project at the centre of the latest update to the South Korea deal.
The project is aimed at enhanced oil recovery, a technique used to increase production from existing oil fields. Trump's statement linked the investment directly to his broader goal of boosting US oil and gas output.
The announcement also comes as concerns over energy prices and the economic impact of the Iran war remain part of the US political and economic debate.
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