US President Donald Trump on Wednesday unveiled plans for South Korea to invest up to $200 billion in the United States. Seoul, however, quickly clarified that a proposed $54 billion Alaska LNG pipeline project has not yet been approved and will depend on commercial and legal conditions.

The announcement marks the first major project under a wider $350 billion strategic investment package agreed by South Korea as part of a trade deal with Washington last year. The package includes $150 billion for shipbuilding and $200 billion for strategic investments.

"Thanks to the agreements my administration has secured with the Republic of Korea, they will invest up to $200 billion," Trump said from the Oval Office.

Trump said the investment would include eight large-scale nuclear power plants, a natural gas pipeline and a 6-gigawatt power generation facility in Texas. The announcement comes as Trump promotes economic and investment deals ahead of the November midterm elections. His administration is also facing voter concerns over the Iran war and high gasoline prices.

The Alaska pipeline could also carry political importance. Republican Senator Dan Sullivan, who faces a competitive reelection race against Democrat Mary Peltola, attended Trump's announcement.

South Korea's government said the Alaska LNG project would proceed only after meeting specific commercial and legal requirements. Seoul confirmed two other parts of the announcement: a $22.3 billion investment in a Texas gas power project to supply electricity to AI data centres and $120 billion to build eight nuclear reactors.

South Korea's industry ministry said it would review the Alaska LNG project for commercial viability and compliance with legal procedures. "No decision has been made on whether to invest or on the size of ⁠the investment," it said.

South Korean President Lee Jae Myung also said on X that the commercial viability of both the LNG project and the nuclear reactors must be confirmed before the projects proceed. Analysts in Seoul said differences over the terms could create disputes between Washington and Seoul during implementation.

The Alaska LNG project has remained uncertain for years on questions over costs, financing and commercial viability. If approved, it would include an 807-mile pipeline connecting Alaska's North Slope with a liquefaction facility on the state's southern coast. The project is designed to transport about 3.9 billion cubic feet of natural gas daily and produce up to 20 million metric tons of LNG annually, according to the White House.

Trump has repeatedly promoted the project as a way to increase US energy exports and strengthen ties with allies such as South Korea and Japan. Seoul's investment could help provide financing, but South Korea has maintained that projects under its US investment package must meet commercial viability standards.

South Korean opposition lawmakers have also questioned the financial risks of investing in US projects. The industry ministry said last week that a more than 6-gigawatt gas-fired power plant in Encinal, Texas, was the first project selected under the $200 billion strategic investment programme.

Japan's JERA and Tokyo Gas have signed preliminary agreements to buy a combined 2 million metric tons of LNG annually from Alaska LNG if it is completed. Developer Glenfarne said in March that it had secured commitments for 13 million tons a year but needed another 3 million tons to secure financing and make the commitments binding.

The eight nuclear plants are part of Trump's broader push to expand US nuclear power as electricity demand grows from data centres and manufacturing. South Korea has been discussing possible investments in US nuclear projects under the wider agreement. The Texas gas-fired plant is expected to supply power to energy-intensive industries, including semiconductor factories and data centres.