South Korea and the United States have signed a memorandum of understanding under which Seoul will invest $350 billion in the U.S. economy in return for lower American tariffs. The agreement allocates $200 billion in cash payments, capped at $20 billion per year, and $150 billion for joint shipbuilding projects.
Investments will focus on advanced sectors including energy, semiconductors, pharmaceuticals, critical minerals and artificial intelligence.
U.S. import duties on South Korean goods cut to 15 percent
South Korean Industry Minister Kim Jung-kwan confirmed that both countries will finalize investment projects before the end of President Donald Trump’s term in January 2029.
The announcement follows an October meeting between South Korean President Lee Jae Myung and U.S. President Donald Trump, during which the leaders agreed to reduce U.S. import duties on South Korean goods from 25 percent to 15 percent.
South Korea’s Industry Minister and U.S. Commerce Secretary Howard Lutnick on Friday signed a memorandum of understanding — a 27-point, non-binding framework on strategic investments.
The agreement sets a timeline for project implementation, with the U.S. president selecting projects after consultations with South Korea, and Seoul required to transfer funds within 45 days of each decision.
Under the deal, President Lee said South Korea will establish a new partnership with the U.S. in shipbuilding, artificial intelligence, and the nuclear sector, assisting its ally “rebuild crucial industries just as the U.S. helped South Korea in the past.”
U.S. approves South Korea’s construction of nuclear-powered submarines
A White House fact sheet noted that the U.S. has approved South Korea’s construction of nuclear-powered submarines and will collaborate with Seoul to explore “avenues to source fuel.”
President Lee’s national security adviser said discussions on nuclear-powered submarines were based on the “premise” that the vessels would be constructed in South Korea. Previously, President Trump had indicated the submarines would be built at a Korean-owned shipyard in Philadelphia.
As part of the agreement, the U.S. also committed to working with South Korea on ways to enrich uranium and reprocess spent nuclear fuel.
For more news on economy, click here.
