South Korea and U.S. Forge Landmark Trade and Investment Pact

South Korea and the U.S. have reached a pivotal trade and investment deal, cutting tariffs on specific exports and committing to a joint $350 billion investment. Key agreements include reducing barriers for South Korean auto exports and splitting investments to stabilize markets. The collaboration extends to shipbuilding and strategic technologies.

In a significant development, South Korea and the United States have finalized a trade and investment deal, as announced by Kim Yong-beom, South Korea's chief policy adviser, after U.S. President Donald Trump's remarks. While Washington has yet to affirm the specifics, initial details reveal substantial progress.

The agreement sets tariffs on U.S. imports of South Korean automobiles and parts at 15%, aligning them with Japanese competitors. Furthermore, South Korean producers in the wood and pharmaceutical sectors will benefit from the lowest tariffs, with some products such as aircraft parts facing no tariffs. The deal also notably protects South Korean chipmakers from competitive disadvantages.

In a show of economic cooperation, the countries agreed to split a $350 billion investment fund, with impactful provisions like a $200 billion cash allocation to sustain foreign exchange market stability. This pact parallels an earlier U.S.-Japan agreement but includes additional safeguards to mitigate potential economic disruptions.

(With inputs from agencies.)