US-South Korea Finalize Trade and Security Pact

South Korean President Lee Jae Myung announced Friday that he and U.S. President Donald Trump have finalized a joint fact sheet outlining agreements on trade and security, capping months of negotiations that include U.S. approval for South Korea to build nuclear-powered attack submarines.

The fact sheet, released Thursday evening in Washington and Friday morning in Seoul, builds on discussions during Trump's state visit to Gyeongju, South Korea, on October 29. It addresses tariffs, investments and defense cooperation amid rising regional tensions. Lee described the outcome as a milestone for South Korea's export-driven economy and national security, telling reporters in Seoul, "The trade negotiations and security consultations... have been officially concluded."

Under the agreement, South Korea commits to a $350 billion investment fund, including $150 billion targeted at U.S. shipbuilding to modernize American yards and expand production of commercial and military vessels. In return, the U.S. will cap tariffs at 15 percent on South Korean imports, such as automobiles and pharmaceuticals, down from higher rates under recent executive orders. Auto duties, currently at 25 percent,...