South Korea clarifies US investment deal is not finalised after Trump's announcement

President Lee Jae Myung says further talks are needed and ‘commercial viability’ must be a prerequisite for South Korean investment in the US

US President Donald Trump’s unilateral announcement of a “colossal” South Korean investment package has prompted Seoul to clarify that the deal is far from finalised, laying bare stark differences between the allies over the terms of their trade agreement, observers have said.

On Wednesday, Trump announced that South Korea would invest in the construction of a natural gas-fired power plant in Texas, eight large-scale nuclear power plants across the United States and a liquefied natural gas (LNG) project in Alaska.

Hours later, South Korean President Lee Jae Myung issued a clarification that effectively pushed back against Washington’s portrayal of the investment package as a done deal, making clear that further negotiations were still necessary.

Trump’s announcement comes just weeks before the highly competitive November midterm elections, apparently aiming to bolster the Republican Party’s economic record and support vulnerable candidates, including Alaska Senator Dan Sullivan.