At the Asia-Pacific Economic Cooperation (APEC) summit, Presidents Lee Jae Myung of South Korea and Donald Trump of the United States finalized details of a $350 billion Korean investment pledge. The deal includes tariff cuts on automobiles and shipbuilding cooperation, along with U.S. approval for South Korea to build nuclear-powered submarines. It marks a new chapter in bilateral industrial and economic ties.
On October 29, 2025, during the APEC summit in Gyeongju, Presidents Lee Jae Myung and Donald Trump finalized a bilateral trade deal. Building on a July framework, it details South Korea's $350 billion investment pledge to the United States, structured as $200 billion in cash installments with an annual cap of $20 billion, and $150 billion for shipbuilding cooperation.
U.S. Commerce Secretary Howard Lutnick stated on social media that 'semiconductor tariffs are not part of this deal' and that South Korea agreed to open markets '100 percent.' Seoul clarified there would be no additional openings in rice and beef markets and no disadvantage compared to Taiwan. Tariffs on Korean cars and parts were reduced from 25% to 15%.
Trump announced on Truth Social approval for South Korea to build a nuclear-powered submarine at Philadelphia shipyards, calling the U.S.-South Korea alliance 'stronger than ever before.' The project, involving Hanwha Group's acquired yards, aims to revive U.S. shipbuilding with at least $150 billion committed.
The White House fact sheet lists Korean investments including Korean Air's $36.2 billion Boeing purchase and HD Hyundai's $5 billion shipyard modernization. Bank of Korea Governor Rhee Chang-yong said the negotiations 'went very well,' noting limited impact on foreign exchange markets. The deal strengthens supply chains and industrial ties amid global trade uncertainties.