Tread carefully on the Alaska LNG deal

Trade talks between Korea and the United States are accelerating. U.S. Treasury Secretary Scott Besent recently named Korea as one of five high-priority nations — alongside Japan, Britain, Australia and India — for upcoming tariff negotiations. Acting President Han Duck-soo added that a virtual meeting with U.S. officials concerning the Alaska liquefied natural gas (LNG) project could take place within days. For Korea, where exports are a lifeline, reducing tariff uncertainty is a necessity. But the inclusion of the Alaska LNG project in the conversation is cause for concern.

The Alaska LNG project is a formidable undertaking. It involves laying a 1,300-kilometer (808-mile) pipeline across permafrost, where construction can proceed only a few months each year. Global energy giants like ExxonMobil and BP once considered the venture but walked away. Even China, under the first Trump administration, explored participation before concluding that the project lacked commercial viability.

Yet U.S. President Donald Trump is pushing it again. The estimated $44 billion price tag could bring construction jobs to Alaska and open new avenues for U.S. LNG exports. Washington is seeking investment from Korea, Japan and Taiwan. Korea might see participation as a way to strengthen its position not only on tariffs, but also in defense cost-sharing talks. Still, the risks outweigh the potential leverage.

A change in administration could scuttle the project. Should a Democratic administration return in three years, opposition to fossil fuel expansion could shelve the entire effort. Korean investment, in that case, could be lost. No less troubling is the possibility that a hasty decision — driven by political considerations — could tie the hands of the next Korean government.

This is where Han’s expertise should be an asset. As one of Korea’s most seasoned trade negotiators, he must lead with caution, not ambition. Any move tied to the LNG deal could quickly become politicized.

The United States may be shifting toward stability after China's retaliatory moves, including rare earth export threats. Early talks with five allies reflect that change.

Korea should not rush. There is no need to accept a high-risk energy project as the price of entry into broader negotiations. Strategic patience, not premature commitment, is what this moment demands.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.