The White House on the 13th (local time) released a fact sheet related to the U.S.-Korea trade deal concluded on the occasion of the summit between President Lee Jae-myung and President Donald Trump in Gyeongju, North Gyeongsang Province, on the basis of their summit last month.
In the fact sheet, the White House said, "On the occasion of President Trump's historic 2024 reelection and President Lee's victory, which showed the strength and resilience of Korea's democracy, the two leaders declared they would open a new chapter in the U.S.-Korea alliance, the core linchpin of peace, security and prosperity on the Korean Peninsula and in the Indo-Pacific."
Regarding the trade deal, the broad outline of which was announced in July, Korea will invest $150 billion (about 219 trillion won) in shipbuilding and $200 billion (about 292 trillion won) in strategic investments, in return for the United States lowering item-specific tariff rates on automobiles, auto parts, lumber and other goods to 15%.
The United States also agreed that the tariff on pharmaceuticals will not exceed 15%, and for semiconductors, a key export item to the United States, it said, "The United States will offer Korea terms no less favorable than those that could be provided in a future agreement covering semiconductor trade at least equivalent in scale to Korea's semiconductor trade."
On Korea's investment approach in the United States, it said, "As trusted partners, the two countries agreed that Korea will not be required to raise a total amount exceeding $20 billion (about 29 trillion won) in any fiscal year," adding, "If there is concern that market instability, such as disorderly fluctuations in the won, may arise in the process of implementing the commitments under the memorandum of understanding (MOU), Korea may request adjustments to the size and timing of financing, and the United States will consider this in good faith."
In the security sphere, regarding the "modernization" of the U.S.-Korea alliance, it said they "reaffirmed the commitment to the defense of Korea through the continued stationing of U.S. forces in Korea." It also pledged to strengthen cooperation, including through the Nuclear Consultative Group (NCG), and included the statement that "the United States reaffirmed its commitment to provide extended deterrence (the nuclear umbrella) by employing the full range of its capabilities, including nuclear capabilities."
According to the fact sheet, President Lee Jae-myung said Korea will increase its defense spending to as quickly as possible reach 3.5% of gross domestic product (GDP) and shared with the United States a plan to provide comprehensive support totaling $33 billion (about 48 trillion won) for U.S. Forces Korea. Korea will also purchase $25 billion (about 36 trillion won) worth of military equipment from the United States by 2030.
Regarding the transfer of wartime operational control during the term, which the Lee Jae-myung administration is aiming for, it said, "With U.S. support, Korea will accelerate the strengthening of the military capabilities necessary to secure the lead in combined defense against North Korea."
In addition, it said, "The United States and Korea will strengthen U.S. conventional deterrence posture in response to all regional threats to the alliance, including North Korea," and "also pledged to expand cooperation in cyberspace and outer space."
On strengthening maritime and nuclear partnerships, it said, "The two countries will pursue additional cooperation through a shipbuilding working group in areas such as maintenance, repair and overhaul, workforce development, shipyard modernization, and supply chain resilience," adding, "These efforts will expand the number of U.S. naval vessels as quickly as possible, including the possibility of building U.S. ships in Korea."
In particular, it said, "The United States has approved Korea's construction of a nuclear-powered attack submarine," and "The United States will work closely with Korea to meet the requirements of this shipbuilding program, including fuel procurement options." It did not say where the nuclear-powered submarine would be built. It went on to say the United States "supports Korea's pursuit of a process leading to civilian uranium enrichment and reprocessing of spent nuclear fuel for peaceful purposes."