The United States and South Korea have finalized a trade agreement linked to Seoul’s US$350 billion investment pledge, lowering U.S. tariffs on Korean goods and setting sector-specific terms, according to Yonhap News Agency.
President Donald Trump, in Gyeongju for summit talks ahead of the APEC Economic Leaders’ Meeting, said Wednesday the two sides had reached a deal. He offered no additional details at a dinner hosted by President Lee Jae-myung. Yonhap reported that Kim Yong-beom, the presidential chief of staff for policy, outlined the package and tariff measures.
The investment pledge is set at $350 billion—$200 billion in cash installments and $150 billion for shipbuilding cooperation—capped at $20 billion per year. As reported by Yonhap, Korean firms will lead shipbuilding projects through direct investment and loan guarantees, with the pacing designed to limit pressure on the foreign-exchange market.
Under the terms described by Yonhap, U.S. “reciprocal” tariffs on Korean goods, including autos, will fall from 25% to 15%. Pharmaceutical and lumber products receive most-favored-nation treatment, while airplane parts, certain generics, and non-U.S.-produced natural resources are exempt. Semiconductor tariffs will be no less favorable than those applied to Taiwan, a key competitor to Korea.
Yonhap said the sides also agreed to embed “commercial rationality” in the memorandum of understanding and to split profits equally until invested amounts are recovered, with a safeguard for Seoul if Washington seeks investments without proper committee review.
South Korea is hosting the 32nd APEC Economic Leaders’ Meeting in Gyeongju from Oct. 31 to Nov. 1. This is a developing story.
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