South Korea open to $350 billion investment in non-binding US deal
South Korea plans to set out a non-binding framework with the United States to spell out how to run and structure the $350 billion in investment pledged under a July trade agreement, a senior official said on Monday.
Seoul and Washington in July struck a trade accord that lowers United States tariffs in return for South Korea pledging investments, but both sides have differed on parts of the deal, such as the distribution of profits.
Kim Yong-beom, presidential policy adviser, stated that the governments are close to a broad understanding. Kim said the United States wants to conclude an MOU soon to set the structure and oversight for the investment strategy.
The financial package would back strategic industries, he said, citing key minerals, batteries, semiconductors, artificial intelligence, pharmaceuticals, and quantum computing. He also repeated that up to $150 billion is allocated for shipbuilding.
South Korea pushes back on U.S. profit-sharing demands
Seoul plans to launch a task force to draft detailed implementation steps, headed by the finance ministry funded by state banks, Kim said. Korean officials have pushed back on Lutnick’s earlier suggestion that the United States would take 90% of profits. They also say equity stakes would be small, with loans and guarantees making up most of the funding.
Trump said in July that South Korea would finance projects “owned and controlled by the United States” and selected by him. Seoul officials say a safety structure will curb financing risk, including United States pledges to purchase project output and to invest only in commercially viable ventures.
South Korea’s new president, Lee Jae Myung, has faced a test during his meeting with Trump for their first summit, as the allies try to manage geopolitics.
South Korea’s economy depends on the United States, which provides military forces and nuclear deterrence. Lee aims to keep cooperation with Washington while avoiding a rift with China, South Korea’s biggest trading partner. As he left for the United States, Lee sent a delegation to Beijing with a message to normalize ties after years of strain.
South Korea seeks stability in talks with Trump
Trump has criticized South Korea, describing it as a “money machine” that profits from U.S. military protection. Analysts say South Korea’s Lee wants to try to make a positive impression, build a connection with Trump and avoid surprises.
Under pressure from the Trump administration, South Korean negotiators reached a last-minute agreement last month that averted the toughest of the new United States tariffs.
“There are many major topics in the security field,” Kim Yong-beom, Lee’s top policy aide, announced last week. “Our position is that trade was already finalized last time. We hope that specific implementation plans for trade won’t be included in the summit at all, or at least should be kept simple if discussed.”
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