Acting President and Prime Minister Han Duck-soo said on Apr. 14 that South Korea and the United States will hold a virtual meeting within the next two days to discuss the Alaska liquefied natural gas (LNG) project. The talks are expected to mark the beginning of a broader trade negotiation aimed at easing tariffs that the United States unilaterally imposed on South Korea.
Speaking at a meeting of the Economic Security Strategy Task Force at the prime minister’s official residence in Samcheong-dong, Seoul, Han said the two countries had agreed to strengthen cooperation across three sectors—shipbuilding, LNG, and restoring trade balance. “We’ve created favorable momentum for further dialogue,” he said. “With the upcoming discussions on the Alaska LNG project, the government will work to reduce the burden of tariffs.”
Han added that a negotiation team led by the Minister of Trade, Industry and Energy would be formed and dispatched to the United States in the near future to initiate formal discussions.
Han’s comments come after a shift in circumstances following a phone call with U.S. President Donald Trump on Apr. 8. The United States had announced on Apr. 2 (local time) that it would impose reciprocal tariffs on 57 countries, including South Korea, raising alarms in Seoul over the potential impact on its export-reliant economy.
According to officials, the Trump administration requested the Apr. 8 phone call, during which Han proposed launching negotiations focused on shipbuilding, LNG cooperation, and addressing the trade imbalance. Trump responded positively, suggesting a “one-stop shopping” approach that would also include talks on revising South Korea’s defense cost-sharing agreement for U.S. troops stationed on the peninsula.
Seoul sees the Alaska LNG project as a strategic entry point for discussions. The project, originally promoted during Trump’s first term, aims to extract natural gas from northern Alaska, transport it via a 1,300-kilometer pipeline to the southern coast, and export it to Asian markets, including South Korea and Japan. The initiative, spearheaded by a state-owned corporation in Alaska, requires $44 billion in investment and is expected to rely heavily on foreign capital.
South Korea had already begun reviewing the possibility of leveraging U.S. energy imports in trade talks after Trump’s re-election last November. When asked at the time whether increasing imports of U.S. energy and agricultural products could help reduce South Korea’s trade surplus, Han said, “If buying such products from the U.S. serves our national interest, then of course we should do it.”
Officials believe shifting energy imports—such as LNG or crude oil—from the Middle East to the United States could help address U.S. concerns over the trade deficit.
Still, the government has not committed to investing directly in the Alaska LNG project. Officials cited questions over the project’s profitability and potential financial risks if it fails. Instead, the administration is reportedly weighing the option of purchasing Alaska-produced LNG as an alternative to direct investment.
