Korea and the U.S. reached a trade agreement on July 31, just one day before a deadline for reciprocal tariff imposition. The deal includes adjustments to tariffs and large-scale Korean investments in the U.S.

Under the agreement, the mutual tariff rate was lowered from the initially proposed 25 percent to 15 percent. Korea also pledged to invest US$350 billion (about 487 trillion won) in the U.S. The tariff on automobiles was set at 15 percent, and Korea agreed to purchase $100 billion worth of American energy resources, such as liquefied natural gas (LNG), over the next four years. The presidential office said that Korea’s rice and beef markets would remain closed to further U.S. access.

President Lee Jae-myung announced the deal on Facebook, writing, “We have concluded tariff negotiations with the U.S. By setting our tariffs at the same or lower level than competing exporting countries, we’ve created conditions to compete on equal or better terms with major economies.”

U.S. President Donald Trump, after meeting the Korean trade delegation at the White House on July 30 (local time), posted on Truth Social: "I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” adding, “"We have agreed to a Tariff for South Korea of 15%.” He also wrote, “The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President.”

On the agricultural side, Kim Yong-beom, the presidential chief of staff for policy, said in a briefing, “It is true that the U.S. strongly pushed for greater market access. But considering food security and the sensitivity of agriculture, we agreed not to further open Korea’s rice and beef markets.” President Trump, however, said Korea “will accept American products including Cars, Trucks, Agriculture, etc.”

The broad framework for the $350 billion investment has been outlined: $150 billion will go toward shipbuilding cooperation with the U.S., while the remaining $200 billion will be used to fund economic security initiatives such as critical mineral supply chains. Kim noted that “the $200 billion fund will also support investments in semiconductors, nuclear energy, secondary batteries, and biotechnology, sectors where Korean firms are highly competitive.”

At a press briefing at the Korean Embassy in Washington, Deputy Prime Minister and Finance Minister Koo Yun-cheol, who led the delegation, highlighted the “$150 billion Korea-U.S. shipbuilding cooperation package,” dubbed the Make American Shipbuilding Great Again (MASGA) project. The initiative encompasses construction of new shipyards in the U.S., workforce training, supply chain rebuilding, ship production, and maintenance, repair, and operations (MRO).

On how the investment returns will be handled, U.S. Secretary of Commerce Howard Lutnick, who led the working-level negotiations, wrote on X that “The Republic of Korea will provide $350 Billion for the United States to invest as President Trump directs, with 90% of the profits going to the American people.” In response, Kim clarified, “That likely means the profits will not flow overseas but will remain within the U.S.” He added that the “original memorandum states that ‘90 of the profits will be retained from the investment.’”