News

Jinse Finance reported that on Thursday, the United States and South Korea announced a comprehensive economic and security agreement, outlining South Korea's investment plans worth hundreds of billions of dollars, as well as major U.S. tariff reductions and expanded defense cooperation. According to the White House, Washington has approved South Korea's $150 billion investment in the U.S. shipbuilding industry. In addition, under a new memorandum of understanding, South Korea has also pledged a total of $200 billion in "strategic investments." In a significant military shift, the U.S. has authorized South Korea to build nuclear-powered attack submarines, while South Korea has committed to purchasing $25 billion worth of U.S. military equipment by 2030 and announced plans to raise its defense spending to 3.5% of GDP "as soon as possible." South Korea has also pledged to provide a total of $33 billion in comprehensive support for U.S. forces stationed in South Korea under its domestic legal framework. In terms of trade, the U.S. will reduce Section 232 tariffs on South Korean automobiles, auto parts, timber, and wood derivatives to 15%, and plans to impose Section 232 tariffs of no more than 15% on pharmaceuticals originating from South Korea. Meanwhile, South Korea has pledged to lift the import quota on 50,000 unmodified U.S. cars and agreed to cooperate with the U.S. to address non-tariff barriers affecting food and agricultural product trade. (Golden Ten Data)