South Korea’s government is pushing back after President Donald Trump announced that a sweeping bilateral investment deal now includes an $8.4 billion enhanced oil recovery project.
Trump made the announcement via Truth Social, framing the addition as a positive development for American energy policy and economic security.
“The Republic of Korea Deal keeps getting BETTER! 8.4 Billion Dollars for an enhanced Oil Recovery Project. Producing more Oil and Gas means American Energy Dominance and Energy Security in the World for the Future!” Trump wrote.
South Korea’s industry ministry stated directly that the enhanced oil recovery investment was not included in the strategic investment agreement reached between the two countries.
Seoul has since asked Washington for clarification on the discrepancy, according to the South Korean news agency Yonhap.
Enhanced oil recovery, commonly referred to as EOR, is a technique used to extract additional output from aging oil fields where conventional production methods have slowed significantly.
The EOR process typically involves injecting carbon dioxide, natural gas, steam, or other substances into a reservoir to push remaining oil toward active production wells.
Trump’s Truth Social post did not identify the specific field, operator, or geographic location associated with the $8.4 billion project, leaving the details unclear.
The EOR announcement builds on a much larger framework Trump outlined Wednesday, in which he said South Korea would direct $200 billion into U.S. projects, including eight large nuclear power plants and a 6-gigawatt power generation facility in Texas.
That $200 billion figure also includes investment tied to the Alaska LNG pipeline project, though Seoul has been notably cautious about committing to the roughly $54 billion infrastructure undertaking.
South Korea’s government has said participation in the Alaska pipeline remains subject to commercial viability assessments and legal review, signaling that significant uncertainty surrounds that component.
The $200 billion in project investment sits alongside a separate $150 billion pledged toward shipbuilding, forming part of a broader $350 billion investment package negotiated over the past year.
The public contradiction between Washington and Seoul over what is and is not formally agreed upon adds a layer of diplomatic complexity to what both sides have otherwise characterized as a landmark economic partnership.
