On November 14 (local time), South Korea and the United States unveiled the specifics of their trade pact. As part of the agreement, South Korea has committed to investing a substantial $350 billion in the U.S., with a breakdown of $150 billion earmarked for the shipbuilding sector and an additional $200 billion slated for high-tech industries, encompassing energy and semiconductors. In return, the U.S. will slash tariffs on South Korean-manufactured automobiles and auto components from the previous rate of 25% down to 15%. Moreover, it will guarantee that South Korean semiconductors are accorded tariff treatment that is at least as favorable as that extended to other nations. Beyond trade, the agreement also encompasses aspects of security collaboration, including South Korea's pledge to ramp up its military expenditure, its procurement of weaponry manufactured in the U.S., and its strides toward the construction of nuclear submarines.
