South Korea and the United States have signed an MoU to advance $350 billion in strategic investments across key US industries. South Korea’s Industry Minister Kim Jung-kwan announced this on 14th November. The two countries aim to finalise detailed investment plans by January 2029.

The announcement follows the trade agreement announced earlier that day. It includes $150 billion in Korean investment for the American shipbuilding industry and another $200 billion for broader industrial sectors. This deal stems from the October meeting between President Lee Jae Myung and US President Donald Trump. During that meeting, both sides agreed to reduce US tariffs on South Korean goods to 15% from 25%.

South Korea’s Industry Minister and the US Commerce Secretary signed a 27-point, non-binding MoU. This provides a roadmap for the implementation of upcoming projects. Once the US president selects specific projects, South Korea must transfer funds within 45 days.

The agreement marks the end of months of uncertainty caused by Trump’s tariffs. These tariffs had threatened key South Korean exports like semiconductors and automobiles. President Lee framed the deal as a major diplomatic win that strengthens trade and security ties. He noted it will establish new cooperation in shipbuilding, AI, and nuclear industries.

A White House fact sheet revealed that the US has approved South Korea’s plan to build nuclear-powered submarines. It will also assist in securing fuel. Washington agreed to South Korea’s request to stagger the $200 billion cash investment in annual tranches of no more than $20 billion. This is to avoid volatility in the won.

The US will reduce tariffs on South Korean autos and guarantee favourable terms for semiconductors, matching those offered to Taiwan. The agreement is expected to strengthen South Korea’s nuclear and security capabilities. However, analysts say it is still too early to determine whether Seoul secured better terms than Europe or Japan.

The trade deal was first outlined in principle in July.

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