US President Donald Trump has announced an $8.4 billion enhanced oil recovery project involving South Korea, but Seoul says the project is not part of the strategic investment agreement between the two countries.
Trump announced the project on Friday, saying it would increase US oil and gas production and strengthen American energy security. Enhanced oil recovery uses techniques such as injecting gases, including carbon dioxide, into mature oilfields to extract additional crude.
A South Korean industry ministry official told the Yonhap news agency that the project was not included in the agreement and that Seoul had contacted Washington for clarification. The official said South Korea understood the investment deal to be limited to projects contained in a joint fact sheet issued by the two governments in November 2025.
The announcement comes as Washington and Seoul begin implementing a broader $350 billion strategic investment package agreed under their trade deal. The package includes $150 billion for shipbuilding and another $200 billion for other US projects.
Trump has already announced several projects linked to the investment package, including plans involving nuclear power, natural gas and electricity generation in the United States. South Korea has said some projects remain subject to commercial viability and legal reviews.
The disagreement over the oil project highlights differences between Washington’s presentation of the investment package and Seoul’s understanding of the commitments.
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