by supplychainreport
The United States and South Korea on Friday unveiled details of a trade agreement that includes a $150 billion South Korean investment in the U.S. shipbuilding sector and an additional $200 billion earmarked for industrial projects, the two countries said.
The announcement follows an October meeting between South Korean President Lee Jae Myung and U.S. President Donald Trump, where the leaders agreed to reduce U.S. import duties on South Korean products from 25% to 15%.
South Korea’s Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick signed a memorandum of understanding outlining strategic investments. The document provides a schedule for implementing selected projects, with South Korea transferring funds within 45 days of decisions made in consultation with the U.S.
President Lee said the agreement strengthens trade, commerce, and economic collaboration between the two countries. “Good competition requires excellent partners, and I believe the U.S. administration’s decisions played a significant role in achieving this meaningful agreement,” he added.
The deal also includes partnerships in shipbuilding, artificial intelligence, and nuclear energy, with provisions for building nuclear-powered submarines and cooperation on related fuel sourcing. To maintain financial stability, the $200 billion investment will be distributed in installments of no more than $20 billion annually.
The agreement covers key sectors including automobiles and semiconductors. Tariffs on South Korean autos will be set at 15%, while semiconductors will receive terms no less favorable than those for Taiwan.
Analysts noted that the deal provides a structured framework for long-term investments and market stability while advancing collaboration in technology and industrial sectors.
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