Donald Trump Unilaterally Claims South Korea Will Make an Additional $8.4 Billion Investment; Boasts of Achievement at Rally

[Financial News] Ahead of the November midterm elections, U.S. President Donald Trump has begun campaigning across the country and boasted about investment commitments secured from South Korea. He claimed that South Korea would make an additional $8.4 billion investment in addition to its investment in a liquefied natural gas (LNG) project. At the same time, he threatened to double tariffs if South Korea did not invest in the LNG project.
On the 2nd (local time), Donald Trump posted on Truth Social, "I am pleased to announce that negotiations with South Korea continue to get better," and wrote, "$8.4 billion for an Enhanced Oil Recovery project." Enhanced oil recovery is a technology that injects carbon dioxide and other substances into an oil field to increase internal pressure and boost oil production. In Alaska's North Slope region, where oil development began in 1968, natural gas produced during oil extraction is reinjected underground to accelerate oil production. The local energy industry plans to build a new natural gas pipeline in addition to the north-south oil pipeline completed in the 1970s, convert surplus natural gas into LNG, and sell it. However, construction has been delayed for decades because of economic viability and other issues.
In an announcement on the 30th of last month, Donald Trump unilaterally claimed that South Korea would invest $54 billion in the gas pipeline and LNG projects. The South Korean government said the next day that the matter was still under review. Speaking to reporters on the 2nd about the investment announcement, Trump said, "I did not announce it prematurely." He added, "I mean, they were there, and their representatives were also present," and emphasized, "We'll see. If they don't want to do it, that's fine with me. I'll just charge them more." Trump continued, "Tell them that if they don't sign soon, I'll double it." Based on the context, the remark appeared to refer to higher tariffs and other measures. Last year, the Trump administration lowered tariffs on imports from South Korea from 25% to 15% in exchange for South Korea's $350 billion investment in the United States.
Trump's tariff threats continued on the 3rd. Speaking at a rally in Ohio that day, he referred to foreign companies' investments in the United States. Trump said, "We give them a brief window of about a year and a half to build factories here," adding, "If they don't, we impose tariffs of 150, 200, 250, or 300%." He continued, "Ultimately, they are all building factories here," and said, "All of this is very simple, and we have carried it out at a level no one has ever seen."
Meanwhile, MOTIE said on the 4th regarding Trump's $8.4 billion investment remark, "Although the exact circumstances have not yet been confirmed, the strategic investment agreement between South Korea and the United States is set out in the Joint Fact Sheet." The project was not included in the joint fact sheet and press release issued by the two countries on the 1st. Shortly after Trump's remarks, the South Korean government had asked the United States through trade channels about the circumstances surrounding them. As the exact circumstances remain unconfirmed, the government has maintained that the official agreement between South Korea and the United States consists of the contents set out in the Joint Fact Sheet.



[email protected] Park Jong-won and Park Ji-young Reporter