US, South Korea unveil details on investment in trade deal

The US and South Korea released details of a trade agreement yesterday that includes a $150 billion Korean investment in the American shipbuilding sector and an additional $200 billion earmarked for industrial sectors, the two countries said.

- JU-MIN PARK KANISHKA SINGH

The joint announcement followed a meeting in October between South Korean President Lee Jae Myung and US President Donald Trump, where they agreed to a deal that would cut American import duties on South Korea's products to 15% from 25%.

“Finally, the South Korea-US trade, commerce, and security negotiations, which were among the biggest variables affecting our economy and security, are ... concluded,’ Mr Lee said yesterday.

“Good competition requires excellent partners, and I believe President Trump's rational decision played a significant role in achieving meaningful agreement.”

The announcement caps more than three months of wrangling over Trump's tariffs that have targeted trading partners around the world.

South Korea was particularly alarmed by the prospect of crushing duties on key exports like semiconductors and autos.

Mr Lee, who took office five months ago with a mandate to steer the country away from the shock of a failed martial law imposition by his predecessor, had sought to score an early diplomatic win by turning an economic threat into an opportunity to boost the country’s trade and security status.