The leaders broke a negotiations deadlock at the APEC summit, securing a $350 billion South Korean investment package and new rules for tariffs and strategic sectors.
GYEONGJU, South Korea — Presidents Donald Trump and Lee Jae-myung finalized a historic trade and investment agreement between the U.S. and South Korea on Wednesday, breaking a months-long deadlock during a face-to-face meeting at the APEC summit.
The direct talks between the two leaders proved decisive in securing a massive $350 billion South Korean investment package destined for the United States. This includes $200 billion in cash and $150 billion in a shipbuilding cooperation program dubbed “Make American Shipbuilding Great Again.”
A key sticking point—automobile tariffs—was resolved when both leaders agreed to reduce the tax on imported cars from both countries to 15%.
According to Kim Yong-beom, South Korea’s chief of staff for policy, the agreement was finalized after 23 ministerial meetings. He stated that the face-to-face meeting between Trump and Lee was the “key factor” that allowed negotiators to close the final points.
President Trump described the negotiations as “extremely intense” and praised the commitment shown at the bilateral summit for overcoming “significant differences.”
The deal includes several key provisions:
- A $20 billion annual cap on the cash investment to avoid disrupting South Korea’s currency market.
- New safeguards for Korean investors, including requiring a Korean manager for each project.
- “Most-favored-nation” status for Korean medicines and wood products.
- Total tariff exemptions for aeronautical components and generic medicines.
- Specific tariffs for semiconductors to ensure South Korea is not at a disadvantage against its main competitor, Taiwan.
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