Seoul [South Korea], November 14 : South Korea and the United States on Friday signed an MOU confirming Seoul's USD 350 billion investment commitment, which was part of a deal to lower US tariffs, the South Korean industry ministry said.
According to the Ministry of Trade, Industry, and Resources, the agreement was signed electronically by South Korean Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick.
This follows the October 29 deal, when South Korea's presidential chief of staff for policy, Kim Yong-beom, announced that Seoul and Washington had agreed on the remaining details of the trade framework after a bilateral meeting between President Lee Jae Myung and US President Donald Trump on the sidelines of the APEC summit in Gyeongju, CNN reported.
While the two countries had settled the broad outline of the deal in Julybringing their reciprocal tariff down to 15 per centkey sticking points remained. Most notably, South Korean automobile exports to the US were still subject to a 25 per cent tariff, and semiconductor tariffs remained higher than those faced by rivals.
Among the USD 350 billion investments Trump demanded upfront, Kim stated that USD 200 billion would be paid in cash and USD 150 billion would be fulfilled through shipbuilding cooperation, which would be led by South Korean companies, CNN reported.
The USD 200 billion investment will be made over several years, with yearly investments limited to USD 20 billion, depending on business progress, Kim said.
He added that such a limit would make it manageable for the South Korean foreign-exchange market, which was the biggest concern for Seoul when it was originally asked to pay USD 350 billion in cash.
The agreement will lower automobile tariffs to 15 per cent, the same rate as competitor Japan, and the semiconductor tariff rate will not be unfavourable compared to rival Taiwan, Kim said.
At the 2025 APEC CEO Summit in South Korea, Trump said, "Together we're solving the challenges that no one before has ever been able to solve... From San Francisco to Seoul... we're strengthening old friendships, forging new bonds... and creating a dramatically better world for our children and generations to come."
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor