The Trans-Alaska pipeline near the Yukon River Camp in Alaska. South Korea is committed to buying $100 billion worth of US energy products, and President Donald Trump has pushed for South Korean participation in the Alaska LNG project. (Shutterstock/Promenade Pix)

Trade Optics Versus Market Fundamentals: Can US LNG Win in South Korea?

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South Korea’s $100 billion US energy pledge is achievable, but contracting significant volumes of US LNG may conflict with domestic long-term decarbonization targets.

With 65 billion cubic meters (bcm) imported in 2025, South Korea ranks as the third-largest liquified natural gas (LNG) importer, behind China and Japan. Yet, only a small fraction of these volumes came from the United States. Given the sheer scale of its LNG demand, the country represents a significant potential prize for US LNG exporters. Under the bilateral trade deal concluded in mid-2025, South Korea agreed to purchase “up to $100 billion worth of US energy products,” but that does not automatically translate into new LNG contracts. 

A Growing but Highly Concentrated LNG Market 

Like Japan, South Korea is almost fully dependent on LNG imports. Unlike its neighbour, however, South Korea’s LNG imports have increased by around 40 percent over the past decade, driven by rising electricity demand and the gradual decline in coal-fired generation. More than half of total gas consumption is consumed in the power sector. 

The market remains heavily concentrated. State-owned Korea Gas Corporation (KOGAS) imports the majority of LNG. However, the share of private importers........

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