Seoul: The United States and South Korea have released full details of a wide ranging trade and security agreement that includes major Korean investments in the American shipbuilding industry and expanded defence cooperation. The announcement follows talks between South Korean President Lee Jae Myung and US President Donald J. Trump.
According to the joint fact sheet, South Korea will invest about 350 billion dollars in the United States over the coming years. This includes 150 billion dollars dedicated to strengthening the US shipbuilding sector, while another 200 billion dollars will be directed to various industrial projects. The investment will be spread out gradually with a yearly limit of around 20 billion dollars to avoid financial market disruptions.
The agreement also includes tariff changes that will make it easier for Korean products to enter the American market. The United States has agreed to cap import duties on many South Korean goods at around 15 percent as part of a reciprocal tariff arrangement.
A major highlight of the deal is deeper defence cooperation. The United States has given approval for South Korea to develop nuclear powered submarines. Washington has also expressed support for Seoul’s request to advance civil nuclear technology, including uranium enrichment and spent fuel reprocessing for peaceful purposes.
The agreement also covers cooperation in new technologies such as artificial intelligence and nuclear industry development. Officials from both countries say the partnership aims to strengthen industrial capacity while deepening the security alliance at a time of growing tensions in the region.
Analysts say the investment plan could boost American shipyards and reshape parts of the global defence and shipping industries. However, some details on technology transfer and security safeguards for the submarine programme still need to be clarified.
Both governments described the agreement as a milestone for economic and strategic cooperation, signalling a closer alignment between Washington and Seoul in the years ahead.