South Korea and the US are about to finalize trade and security agreements.

VTV.vn - A joint statement between South Korea and the US on trade and security agreements is expected to mention contracts worth billions of dollars.

South Korea and the US are about to finalize trade and security agreements.

Deputy Prime Minister and Finance Minister Koo Yoon Cheol said in a radio interview that the trade pact is “almost complete,” while the security-related pact is “still being fine-tuned.” He added, “the two pacts will be signed simultaneously after security provisions are agreed upon.”

Under South Korea’s $350 billion investment package for projects in the United States, $200 billion will be earmarked for “commercially viable” projects that will be vetted by an investment committee headed by U.S. Commerce Secretary Howard Lutnick. The investment is aimed at preventing liquidity risks, Kim Yong Beom, senior presidential secretary for national policy, said on October 29. Kim also said South Korea will limit its annual investment in the United States to $20 billion to ensure stability in the foreign exchange market, as the country resists U.S. demands for “early” cash injections for projects.

The remainder, about $150 billion, will be poured into shipbuilding projects led by Korean businesses, including cash, loans and credit guarantees.

In return, the import tax on Korean cars to the US will be reduced from 25% to 15%, along with a 15% reciprocal tax effective from August 7. Some other items such as pharmaceuticals, wood, semiconductors, aircraft components and related drugs will also enjoy most-favored-nation status or lower tariff preferences.

Meanwhile, South Korean parties remain divided on whether the joint information or related memorandum of understanding needs to be ratified by the National Assembly . Rep. Kim Byung-kee, leader of the ruling faction in the National Assembly, said he would push for a special bill to be passed in November to create a legal basis for the $350 billion investment package in the US. However, the main opposition, the People’s Power Party (PPP), said any trade deal between South Korea and the US must be ratified by the National Assembly because it “puts a huge financial burden on the Korean people” and should be treated as a treaty under the Constitution.

Source: https://vtv.vn/han-quoc-va-my-sap-chot-thoa-thuan-thuong-mai-va-an-ninh-100251105212331645.htm