Concerns rise over potential hasty deal on LNG development

Acting President and Prime Minister Han Duck-soo, right, talks with Alaska Gov. Mike Dunleavy at Government Complex Seoul, March 25. Courtesy of Prime Minister's Office

The government has been urged to avoid rushing into agreements on importing liquefied natural gas (LNG) from Alaska or participating in a pipeline construction project there, in exchange for favorable outcomes in ongoing trade negotiations with the United States.

Citing uncertainty over the profitability of gas imports and the feasibility of the pipeline project, calls are mounting for the government to proceed more cautiously in tariff talks with the U.S.

These warnings came as acting President Han Duck-soo said Monday he expects a teleconference between Korea and the U.S. within the next couple of days to discuss the Alaskan LNG issue. His remarks came about a week after U.S. President Donald Trump wrote on social media, after his 28-minute phone call with Han, that they talked about a joint venture for the Alaskan pipeline project.

The state-run Korea Gas Corp. said Tuesday it held working-level talks with Alaska Gasline Development Corp. via online, although they did not discuss detailed issues.

These developments raised the possibility of Seoul accepting Washington's demands related to Alaskan LNG in hopes that Trump will reduce tariffs on Korea's key export items, such as cars, steel and semiconductors.

Industry Minister Ahn Duk-geun is also scheduled to visit the U.S. next week for a high-level follow-up meeting on trade, as confirmed by U.S. Treasury Secretary Scott Bessent on Monday (local time).

"Cars are one of our key export items, and the Alaska project could be considered part of our negotiation package regarding the new U.S. tariffs," Second Vice Industry Minister Choi Nam-ho said Tuesday. "If Korea can secure meaningful benefits in auto tariff negotiations, participating in the project might be a concession we're willing to make."

The liberal Democratic Party of Korea (DPK) criticized the government for apparently trying to conclude negotiations under Han's leadership. The party argued that the National Assembly should oversee the administration's trade strategy.

"It seems the U.S. believes it can gain the upper hand in negotiations and maximize its own interests, likely due to Korea's political uncertainty," DPK Rep. Jin Sung-joon said. "With the U.S. government's tariff policies changing every day, there's little reason to rush the negotiations."

Kim Dae-jong, a business administration professor at Sejong University, advised the government to carefully assess whether Alaskan LNG imports would truly benefit Korea.

"Overreliance on the U.S. could raise risks to Korea's energy security," he said.

Japan, in contrast, has been more cautious about revealing its bargaining chips ahead of a senior government official's visit to the U.S. this week.

"We do not intend to make one compromise after another just to wrap up negotiations quickly," Japanese Prime Minister Shigeru Ishiba said Monday.

Tokyo's firm stance prompted Washington to press its allies to make satisfactory proposals immediately.

"I think there will be an advantage for our allies, especially a first-mover advantage," Bessent said.

In response to concerns, the industry ministry said nothing has been decided yet regarding Korea's participation in the Alaska LNG project and negotiation package regarding the U.S. tariffs.