Trump announced a $54 billion energy investment from South Korea. South Korea says it took the plunge

South Korea has rebuffed a $54 billion investment announced by the Trump administration, turning a troubled plan to export Alaskan natural gas into another potential sticking point in long-running trade negotiations between allies.

On Wednesday, Trump touted the figure as part of a broader deal that would see Seoul invest $200 billion in U.S. energy in exchange for reduced tariffs on South Korean goods.

But South Korea later said it had made no firm commitments to the Alaska project.

“Giving numbers or using definitive language goes far beyond what has been agreed,” Minister of Trade, Industry and Resources Kim Jung-kwan said Thursday, according to South Korea’s Yonhap news agency.

According to a statement from the U.S. Department of Commerce released Wednesday, South Korea and the United States agreed to “commence work” on the Alaska project, “subject to commercial reasonableness.” He gave no figures on how much South Korea would invest in it.

CNN has contacted the US Department of Commerce for comment.

Asked about the apparent discrepancy, White House spokeswoman Taylor Rogers told CNN that “Wednesday’s joint announcement was historic for the great state of Alaska, the United States and the Republic of Korea.”

However, she did not directly respond to Jung-kwan’s comments.

“The President and Alaskans look forward to the construction and completion of this long-awaited project that will create 12,000 construction jobs and 1,300 permanent operations jobs in the state, generate $25 billion in state and local revenue, and generate $10 billion in energy savings in Alaska,” Rogers said.

The divergence between official accounts indicates conflicting priorities that could hamper continued negotiations between Washington and Seoul.

Trump also touted the energy deal Friday on Truth Social, but made no mention of the dispute over South Korea’s involvement in the Alaska project.

“I am delighted to report that the agreement with the Republic of Korea keeps getting better! » Trump wrote. He said producing more oil and gas would mean “American energy dominance and energy security.”

Relations between the longtime allies have become strained since Trump’s return to office, particularly following the arrest of nearly 500 people, most of them Korean nationals, in an ICE raid on a Hyundai plant in Georgia that sparked outrage at home. The automaker is one of the largest companies in South Korea.

In the United States, energy security has become a focal point in the run-up to the November midterm elections, as the war in Iran has affected global oil supplies and increased the cost of gas and other everyday purchases.

And in Alaska, the pipeline project – estimated at between $45 billion and $55 billion – has entered its final phase. Senate race between GOP incumbent Dan Sullivan and Democrat Mary Peltola.

On Wednesday, Sullivan’s office praised what he described as “a historic $54 billion investment by South Korea” in the Alaska LNG project. CNN called Sullivan’s office to additional comment.

In a break from his party’s policies, Peltola threw his support behind the Alaska LNG project as a way to reduce energy costs for Alaskans.

South Korea is the world’s third largest importer of liquefied natural gas. After the war in Iran disrupted supplies to the Middle East, Asian energy importers began buying more LNG from the United States, which became the world’s largest producer and exporter.

Kim, the Korean minister, said the country would carefully consider whether to pursue the Alaska LNG project. A joint statement said the United States would facilitate favorable participation by Korean suppliers if the project goes ahead and grant priority access to their LNG supplies.

“The government will continue to put the national interest first and do its best to ensure that economic and trade relations between South Korea and the United States develop into a stable and predictable partnership,” Kim added.

But the capital-intensive Alaska project, which would include 807 miles of pipeline and an LNG export facility, has been in development for more than a decade and delayed by a lack of financing and purchasing agreements.