South Korea and the US sign a $350 billion strategic agreement

(CLO) South Korea will invest 350 billion USD in projects in the US, in return the US will reduce reciprocal tariffs with South Korea from 25% to 15%.

The deal was electronically signed by South Korean Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick on November 14, building on a detailed agreement reached on October 29.

Accordingly, the $350 billion investment includes $200 billion in cash installments, with an annual ceiling of $20 billion, and $150 billion for bilateral shipbuilding cooperation. Investment projects will focus on energy, semiconductors, pharmaceuticals, essential minerals, artificial intelligence, quantum computing and other advanced industries.

A Korean advisory committee and a US investment committee will oversee joint projects, and the US will give priority to Korean companies in selecting suppliers.

South Korean President Lee Jae Myung and US President Donald Trump. Photo: FB/jaemyunglee

The joint statement released on November 13 also revealed official US support for South Korea's efforts to build nuclear-powered attack submarines, along with the ability to enrich uranium and reprocess spent nuclear fuel for peaceful purposes.

This is the first time high-level bilateral documents have been released since President Lee Jae Myung took office in June, following summits with US President Donald Trump in Washington and Gyeongju.

In the defense sector, the United States emphasizes its commitment to protecting its allies through the long-term presence of US Forces Korea (USFK) and extended deterrence capabilities, including nuclear capabilities.

South Korea will increase defense spending to 3.5 percent of GDP and pledge to spend $25 billion on U.S. military equipment by 2030, while supporting the U.S. Forces Korea (USFK) with up to $33 billion. The two sides also discussed the transfer of wartime operational control (OPCON) and increased bilateral defense industry cooperation.

On trade, the US agreed to reduce tariffs on automobiles, spare parts, wood and wood products to 15%, apply pharmaceutical tariffs of no more than 15% and provide favorable conditions for semiconductor trade.

South Korea and the United States also pledged to address non-tariff barriers, protect access to agricultural markets and ensure US companies are not discriminated against in digital services.

Observers said this is a big step forward in economic and security cooperation between the two allies, and reflects South Korea's efforts to strengthen its defense capabilities, modernize its strategic industry and secure its position in the Indo- Pacific region in the face of growing threats from North Korea and China.

Source: https://congluan.vn/han-quoc-va-my-ky-thoa-thuan-chien-luoc-350-ty-usd-10317779.html