South Korea and US Seal Historic USD 350 Billion Trade Agreement

South Korea and the US signed a memorandum confirming Seoul's commitment to a USD 350 billion investment under a trade deal lowering tariffs. This agreement comes after extensive negotiations between leaders, aiming to address sticking points in auto and semiconductor tariffs.

South Korea and the United States have formally signed a memorandum of understanding, confirming Seoul's substantial USD 350 billion investment commitment. This pivotal development is a significant aspect of an agreement aimed at reducing US tariffs, as announced by South Korea's Ministry of Trade, Industry, and Resources.

The memorandum, signed digitally by South Korean Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick, follows the October 29 resolution where South Korea's policy chief, Kim Yong-beom, disclosed the finalization of remaining trade framework details. This resolution came after a high-level meeting between South Korean President Lee Jae Myung and US President Donald Trump at the APEC summit sidelines in Gyeongju, CNN reported.

Central to the accord is President Trump's demand for an upfront USD 350 billion investment from South Korea. According to Kim, USD 200 billion will be in cash and an additional USD 150 billion through South Korean-led shipbuilding initiatives. The agreement ensures automobile and semiconductor tariffs align more closely with competitors like Japan and Taiwan, addressing one of the key sticking points. At the 2025 APEC CEO Summit, Trump emphasized the strengthening of international bonds and the creation of a better future for coming generations through such partnerships. (ANI)

(With inputs from agencies.)