South Korea, US reach trade deal at Trump-Lee summit from tariffs to investment

South China Morning PostCenterEN 1 min read 100% complete by Park Chan-kyongOctober 29, 2025 at 02:00 PM

AI Summary

short article 1 min

South Korea and the United States reached a comprehensive trade agreement during a summit between President Lee Jae-myung and US President Donald Trump in Gyeongju on Wednesday. The deal includes maintaining tariffs at 15% for automobiles and auto parts, down from previous rates of up to 25%. South Korea also committed to a financial investment package worth $350 billion in the U.S., comprising $200 billion in direct investments and $150 billion in shipbuilding cooperation. These investments will be made annually within a limit of $20 billion, with most funds raised through interest payments and dividends on foreign exchange reserves to minimize market impact.

Key Topics & Entities

Gyeongju ×350% Donald Trump ×370% Lee Jae-myung ×270% South Korea ×480% US ×580%

Keywords

trade deal 100% tariffs 90% trump-lee summit 90% investment package 80% us$350 billion 70% shipbuilding cooperation 70% market impact 60% automobile tariffs 60% foreign exchange reserves 50% annual limit 40%