Trump and Lee Hash Out Modalities of $350B Korean Investment in US
On 29 October 2025, US President Donald Trump and South Korean President LEE Jae Myung met in Gyengju to hash out the modalities of the United States of America – South Korea Trade Deal. South Korean President Lee conferred the title of Grand Order of Mugunghwa and gifted a replica of the royal gold crown to US President Trump.
Previously, South Korean pledged to inject USD 350 billion into the US market in exchange for favorable tariffs. Then, several rounds of negotiations between US and South Korea took place without arriving at a definite roadmap. Actually, South Korea expressed concerns that such a large transfer in one go might negatively impact its economy and stock market.
Instead, South Korea proposed to spread the $200B #FDI into ten instalments of USD 20 billion over a decade. The targeted projects will be agreed upon through bilateral consultations.
Additionally, South Korea will invest USD 150 billion to revive shipbuilding in the US. Specifically, the first project is the construction of a nuclear-powered submarine for South Korea at the Philadelphia Shipyards, which was purchased by South Korean Hanhwa Group last year.
One of the key sectors of cooperation would be auto making, in genral, and electric vehicles (EV), in particular. South Korea also agreed to purchase more hydrocarbons and agricultural produce from US. Under the updated trade deal, the 25% tariff on South Korea will be brought down to 15%, at par with Japan, which is important for Korean vehicle brands such as Hyundai and Kia.