Joint reality sheet on Korea-US commerce deal

President Lee Jae Myung of the Republic of Korea (ROK) welcomed President Donald J. Trump of the US of America (United States or U.S.) for a State Go to to ROK on October 29. This marks the primary time in Korean historical past {that a} State Go to has been hosted in Gyeongju and follows on the 2 leaders’ first assembly in Washington on August 25. Notably, it’s also the primary time that the ROK has welcomed the identical chief for a second state go to.

In gentle of President Trump’s historic 2024 victory and President Lee’s election demonstrating the ROK’s democratic power and resilience, they declared a brand new chapter within the U.S.-ROK Alliance, the linchpin for peace, safety and prosperity on the Korean Peninsula and within the Indo-Pacific area.

Rebuilding and increasing important industries

President Trump and President Lee reaffirmed the historic announcement in July of The Korea Strategic Commerce and Funding deal, which displays the power and endurance of the U.S.-ROK Alliance.

• Each leaders welcome Korean investments in numerous sectors to advance financial and nationwide safety pursuits, together with however not restricted to shipbuilding, power, semiconductors, prescription drugs, important minerals, and synthetic intelligence/quantum computing.

• This deal consists of $150 billion of Korean funding within the shipbuilding sector permitted by the US, which is known as the Permitted Investments.

• This deal additionally consists of $200 billion of further Korean funding dedicated pursuant to the Memorandum of Understanding with respect to Strategic Investments (MOU), which is predicted to be signed by representatives of the US and ROK.

• The USA will apply the upper of both the U.S.-Korea Free Commerce Settlement (“KORUS FTA”) or U.S. Most Favored Nation (“MFN”) tariff fee, as relevant, or a tariff fee of 15 p.c on originating items of the ROK, for functions of the reciprocal tariff offered below Government Order 14257 of April 2, 2025, as amended.

• The USA will scale back its Part 232 sectoral tariffs on vehicles, auto components, timber, lumber, and wooden derivatives of the ROK to fifteen p.c. For such merchandise of the ROK with a KORUS FTA or MFN tariff fee, as relevant, equal to or larger than 15 p.c, no further Part 232 tariff shall apply. For such merchandise of the ROK with a KORUS FTA or MFN tariff, as relevant, lower than 15 p.c, the sum of the KORUS FTA or MFN tariff and the extra Part 232 tariff shall be 15 p.c.

• For any Part 232 tariffs imposed on prescription drugs, the US intends to use to originating items of the ROK a Part 232 tariff fee no larger than 15 p.c.

• For any Part 232 tariffs imposed on semiconductors (together with semiconductor manufacturing gear), the US intends to offer phrases for such Part 232 tariffs on Korea which might be no much less favorable than phrases which may be supplied in a future settlement protecting a quantity of semiconductor commerce at the very least as giant as Korea’s, as decided by the US.

• The USA intends to take away supplemental tariffs imposed pursuant to Government Order 14257 of April 2, 2025, as amended for sure merchandise recognized on the record of Potential Tariff Changes for Aligned Companions, equivalent to generic prescription drugs, generic pharmaceutical substances, generic pharmaceutical chemical precursors, and sure pure assets unavailable in the US. The USA can even take away tariffs on sure plane and components of the ROK from the tariffs imposed pursuant to Government Order 14257, as amended, by Proclamation 9704, as amended, Proclamation 9705, as amended, and Proclamation 10962.

Overseas change market stability

The USA and the ROK, in reference to their respective commitments included within the MOU, have completely mentioned the potential influence of the MOU on the overseas change market stability of the ROK. They’ve reached a mutual understanding that commitments within the MOU shall not be allowed to offer rise to market instability. As trusted companions, the 2 nations agree that the ROK shall not be required to fund an combination quantity of U.S. {dollars} larger than $20 billion in any calendar 12 months. The ROK will use its greatest efforts, to the best extent doable, to supply the U.S. {dollars} via means aside from market purchases in order to reduce any potential influence in the marketplace. Ought to it seem that the achievement of the commitments within the MOU might trigger market instability, equivalent to disorderly actions of Korean gained, the ROK might request an adjustment within the quantity and timing of the funding, and the US will, in good religion, give due consideration to such request.

Enhancing business ties

The 2 leaders welcomed a collection of business commitments in strategic sectors, reflecting the arrogance of the personal sector within the sturdy bilateral financial partnership.

• The 2 leaders welcomed the announcement in August by ROK firms of overseas direct investments in the US totaling $150 billion throughout President Trump’s time period. Each international locations will use their greatest efforts to facilitate these investments.

• The 2 leaders welcomed the announcement by Korean Air (KAL) in August of a purchase order order of 103 Boeing plane powered by GE Aerospace engines. The Boeing dedication is valued at U.S. $36 billion and can embody a mixture of Boeing 737 MAX jets, 787 Dreamliners, and 777X passenger and freighters, bringing KAL’s complete order in 2025 to greater than 150 Boeing airplanes.

• The USA and the ROK welcome the Purchase America in Seoul initiative, whereby the ROK, in collaboration with the State Governments, will manage an annual exhibition that includes U.S. firms, together with Small and Medium-sized Enterprises, to advertise the export of U.S. items into Korea.

Selling recriprocal commerce

The 2 leaders acknowledged that the lately introduced deal displays a typical objective to extend mutually helpful commerce and funding. Within the spirit of the deal, the US and the ROK will deal with non-tariff boundaries and memorialize commitments and a plan of motion to advertise reciprocal commerce, to be adopted by the KORUS Joint Committee earlier than the top of the 12 months. It will embody however not be restricted to the next:

• The ROK will eradicate the 50,000-unit cap on U.S.-originating Federal Motor Automobile Security Requirements (FMVSS)-compliant autos that may enter the ROK with out additional modifications. The ROK can even scale back regulatory burdens for U.S. automotive exports by not requiring further documentation in its emissions certification course of aside from these submitted to U.S certification authorities.

• The ROK will work along with the US to deal with non-tariff boundaries affecting commerce in meals and agricultural merchandise, together with by: making certain that present commitments below bilateral agreements and protocols are met; streamlining the regulatory approval course of for agricultural biotechnology merchandise and resolving the backlog of U.S. functions; establishing a U.S. Desk devoted to requests for U.S. horticultural merchandise; and preserving market entry for U.S. meats and cheeses that use sure phrases.

• The USA and the ROK commit to make sure that U.S. firms will not be discriminated in opposition to and don’t face pointless boundaries by way of legal guidelines and insurance policies regarding digital companies, together with community utilization charges and on-line platform rules, and to facilitate cross-border switch of knowledge, together with for location, reinsurance, and private knowledge. Additional, the US and the ROK will assist the everlasting moratorium on customs duties on digital transmissions on the World Commerce Group.

• The ROK commits to offer further procedural equity provisions in competitors proceedings, together with the popularity of attorney-client privilege.

• The USA and the ROK will work collectively to guard mental property rights. The ROK will proceed to take the required steps to accede to the Patent Regulation Treaty.

• The USA and the ROK decide to work collectively to make sure sturdy safety of internationally-recognized labor rights. The USA and the ROK will work collectively to fight all types of pressured labor globally, together with by combatting the importation of products made with pressured labor.

• The USA and the ROK reaffirm the significance of making certain variations in environmental safety don’t distort commerce and funding. To this finish, the ROK will successfully implement its environmental legal guidelines to facilitate reciprocal commerce, together with by absolutely implementing the WTO Settlement on Fisheries Subsidies.

Defending financial prosperity

The 2 leaders acknowledged the necessity to strengthen financial and nationwide safety alignment as a way to protect our competitiveness and keep safe provide chains. This consists of cooperation to fight obligation evasion and taking complementary actions to deal with unfair and non-market insurance policies and practices, enhancing inbound funding and outbound funding rules, and each international locations will make sure that worldwide procurement obligations present a profit to these international locations which have taken on the identical commitments.

Modernizing the U.S.-ROK alliance

The USA underscored its dedication to the protection of the ROK via the enduring presence of the U.S. Forces Korea (USFK).

• The USA reaffirmed its pledge to offer prolonged deterrence, leveraging the complete vary of its capabilities, together with nuclear. The 2 leaders dedicated to strengthening cooperation via session mechanisms together with the Nuclear Consultative Group.

• President Lee shared the ROK’s plan to extend its protection spending to three.5% of GDP as quickly as doable in accordance with ROK authorized necessities, which President Trump welcomed.

• The ROK additionally dedicated to spending $25 billion on U.S. army gear purchases by 2030, and shared its plan to offer complete assist for U.S. Forces Korea amounting to $33 billion in accordance with ROK authorized necessities.

• The 2 leaders dedicated to proceed alliance cooperation towards the transition of wartime operational management. With the assist of the US, the ROK pledged to speed up efforts to strengthen its army capabilities obligatory to steer the mixed typical protection in opposition to the Democratic Folks’s Republic of Korea (DPRK). These embody acquisition of superior U.S. weapons programs and enlargement of bilateral protection industrial cooperation, together with in high-tech weapons programs.

• The USA and the ROK will improve U.S. typical deterrence posture in opposition to all regional threats to the Alliance, together with the DPRK. The 2 sides affirm related understandings since 2006. Either side will proceed shut session and report the progress on implementation to their management.

• The USA and the ROK pledged to broaden cooperation in our on-line world and outer area. The 2 leaders additionally reaffirmed their intention to proceed working collectively on AI within the army area.

Coordinating on Korean Peninsula and regional points

The 2 leaders dedicated to peace, safety, and prosperity each on the Korean Peninsula and within the Indo-Pacific area.

• The 2 leaders reiterated their dedication to the whole denuclearization of the DPRK and peace and stability on the Korean Peninsula, and pledged to work collectively to implement the Joint Assertion of the 2018 U.S.-DPRK Singapore Summit.

• Each leaders agreed to coordinate carefully on DPRK coverage and known as on the DPRK to return to significant dialogue and abide by its worldwide obligations, together with by abandoning its weapons of mass destruction (WMD) and ballistic missile packages.

• The 2 leaders dedicated to strengthen the trilateral partnership with Japan.

• The 2 leaders reaffirmed efforts to uphold freedoms of navigation and overflight and different lawful makes use of of the ocean. They reaffirmed that the maritime claims of all nations ought to adjust to the worldwide legislation of the ocean.

• They emphasised the significance of preserving peace and stability throughout the Taiwan Strait. They inspired the peaceable decision of cross-Strait points and opposed unilateral modifications to the established order.

Furthering our maritime and nuclear partnership

The USA welcomed the ROK’s dedication to contribute to modernizing and increasing the capability of American shipbuilding industries, together with via investments in U.S. shipyards and America’s workforce. The ROK welcomed the US’ assist for the ROK’s civil and naval nuclear energy packages.

• Each international locations dedicated to collaborate additional via a shipbuilding working group, together with on upkeep, restore, and overhaul, workforce growth, shipyard modernization, and provide chain resilience. “

• These initiatives will improve the variety of U.S. business ships and combat-ready U.S. army vessels as shortly as doable, together with the potential building of U.S. vessels within the ROK.

• In keeping with the bilateral 123 settlement and topic to U.S. authorized necessities, the US helps the method that may result in the ROK’s civil uranium enrichment and spent gasoline reprocessing for peaceable makes use of.

• The USA has given approval for the ROK to construct nuclear-powered assault submarines. The USA will work carefully with the ROK to advance necessities for this shipbuilding venture, together with avenues to supply gasoline.