U.S. and South Korea on Friday unveiled details of a trade agreement that includes a $150 billion South Korean investment in the U.S. shipbuilding industry, along with an additional $200 billion designated for broader industrial sectors, the two governments said.
The joint announcement followed a meeting in October between South Korean President Lee Jae Myung and U.S. President Donald Trump, where they agreed to a deal that would cut American import duties on South Korea’s products to 15% from 25%.
Under the agreement, Lee said South Korea will build nuclear-powered submarines and form a new partnership with the U.S. on shipbuilding, artificial intelligence and the nuclear industry.
A fact sheet released by the White House said that the U.S. gave approval for South Korea to build nuclear-powered submarines.
The White House said South Korea will invest $350 billion in the U.S., including $150 billion in the shipbuilding sector.
Details On Investment Package
Earlier, South Korea said the package of $350 billion included $200 billion in cash that would come in installments no larger than $20 billion a year in an effort to keep the won stable.
The fact sheet said the two countries have “a mutual understanding” that South Korea’s investment should not “give rise to market instability” in Asia’s fourth-largest economy.
In a televised briefing on Friday, Lee’s national security adviser said the two countries had discussed the issue of nuclear submarines on the “premise” that the vessels would be built in South Korea.
Trump previously said the submarines would be built in a Korean-owned shipyard in Philadelphia.
A trade deal was first unveiled in July, when South Korea agreed to invest hundreds of billions of dollars in U.S. projects in exchange for lower tariffs.
(With inputs from Reuters)
