US President Donald Trump and South Korean President Lee Jae Myung finalised their long-delayed trade agreement during a summit in South Korea on Wednesday. The deal, first announced in July, shields Seoul from major US tariffs in exchange for a $350 billion investment commitment in the American economy.
“We made our deal, pretty much finalised it,” Trump said at a dinner with Lee and regional leaders on the sidelines of the Asia Pacific forum. South Korea’s presidential policy chief Kim Yong-beom confirmed “dramatic progress” was made hours before the summit.
Breakdown of the Investment Plan
Under the agreement, South Korea will contribute $200 billion in cash over several years, capped at $20 billion annually, while investing $150 billion in shipbuilding projects to help boost US industry. Both sides agreed to split profits equally before recovering initial investments and pursue only commercially viable ventures.
US Commerce Secretary Howard Lutnick will head a joint investment committee to evaluate potential projects. The deal still requires ratification by South Korea’s parliament.
Focus Shifts to Trump-Xi Summit
Arriving from Tokyo after North Korea test-fired a nuclear-capable cruise missile, Trump received a grand welcome in Gyeongju for the Asia-Pacific Economic Cooperation forum.
Speaking en route to South Korea, Trump expressed optimism about his upcoming meeting with Chinese President Xi Jinping in Busan, saying he expects “a very good outcome” on trade and fentanyl controls.
China’s foreign ministry said the summit would “inject new momentum” into bilateral ties and foster “positive outcomes.”
