Seoul:South Korea has transferred $2.4 billion to Washington as part of its investment in a Texas energy project, confirmed Finance Minister Lee Hyoung-il on Tuesday. This funding is part of an agreement between the two countries under Seoul's investment initiative.
According to Yonhap News Agency, during a parliamentary audit, Finance Minister Lee responded affirmatively to a lawmaker's inquiry about the transfer, noting that approximately 10 percent of the project's estimated budget was sent to the United States last Thursday. The project, known as "Project Star," involves the construction of a 6,472-megawatt gas-fired combined-cycle power plant for AI data centers, with a total cost of $22.3 billion.
The Ministry of Trade, Industry and Resources recently introduced three projects included in South Korea's investment pledge to the U.S., which was announced last year in exchange for lower tariffs. The investment commitment totals $150 billion for shipbuilding cooperation and $200 billion for various strategic sector projects.
Lee addressed the necessity of parliamentary approval for the project, asserting its commercial viability in response to concerns from Rep. Lim Lee-ja of the main opposition People Power Party. Additionally, Lee mentioned "Project North," which focuses on exploring the construction of a pipeline and terminal for the LNG industry in Alaska. This project is still under review to determine its commercial viability.
The U.S. administration under President Donald Trump previously announced South Korea's planned $54 billion investment in the Alaska LNG project as part of a broader $200 billion commitment to U.S. energy projects. However, South Korea's industry ministry stated that the Alaska LNG project has not been finalized, emphasizing that its commercial viability needs thorough assessment before proceeding.
The LNG project proposes a 1,298-kilometer pipeline from the North Slope to southern Alaska, aiming to liquefy the gas for shipment to Asia. U.S. Vice President JD Vance mentioned on Monday that both countries still need to finalize details of the Alaska project but expressed optimism about its future progress, citing strong Asian demand for American gas.