US and South Korea Finalise Joint Fact Sheet on Trade and Security Agreements Following Summit

The United States and South Korea have finalised a joint fact sheet, as announced by the White House on November 13. This document details agreements on trade and security, following the summit between President Donald Trump and South Korean President Lee Jae Myung in October. During their meeting in Gyeongju, South Korea, they agreed to reduce U.S. import duties on South Korean goods from 25% to 15%.

The agreement outlines that the US will apply either the higher rate under the U.S.-Korea Free Trade Agreement or the Most Favoured Nation (MFN) tariff, or a 15% tariff on South Korean goods. This is part of its reciprocal tariff policy, as stated by the White House on November 13. For pharmaceuticals, tariffs will not exceed 15%.

President Lee announced that South Korea will develop nuclear-powered submarines and collaborate with the US in shipbuilding, artificial intelligence, and the nuclear sector. This was shared during a televised briefing. The agreement includes $150 billion of Korean investment in the shipbuilding sector approved by the United States, referred to as Approved Investments.

The leaders praised Korean Air's order of 103 Boeing aircraft equipped with GE Aerospace engines. Valued at approximately $36 billion, this order includes various Boeing models such as the 737 MAX, 787 Dreamliner, and 777X passenger and freighter aircraft. By 2025, KAL's total Boeing orders will exceed 150 airplanes.

Additionally, the Buy America in Seoul initiative was highlighted in the deal. Under this initiative, South Korea will work with state governments to organise an annual exhibition featuring US companies. This event aims to promote American goods' export into Korea and will include Small and Medium-sized Enterprises.

Strategic Investments

The deal also involves an additional $200 billion in Korean investments. These are pledged in the Memorandum of Understanding (MOU) on Strategic Investments, expected to be signed by representatives from both countries. The two leaders expressed their support for South Korean companies' foreign direct investments in the US totalling $150 billion during President Trump's tenure.

Both nations are committed to supporting these investments actively. The White House noted that every effort would be made to promote these initiatives further. The collaboration signifies a strengthened partnership between the two countries across multiple sectors.