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South Korea's $350B US investment and tariff deal
Agreed Oct 29, 2025; law Mar 2026· Treaty or event
FactTreaties, membership, measured data, events.
Seoul's 2025 bargain with Trump: $350 billion of investment in the US in exchange for 15% tariffs instead of 25%.
See it on the Geopolitics map →The picture
Agreed on July 30, 2025, the deal stalled over how much Korea would pay in cash, and over a September immigration raid on a Hyundai–LG battery plant in Georgia that detained over 300 Korean workers. At Gyeongju on October 29, Lee and Trump settled it: $200 billion in investments, capped at $20 billion a year, plus $150 billion for US shipbuilding. Washington backed Korean nuclear-powered submarines. After Trump threatened 25% tariffs again, the National Assembly passed the enabling law on March 12, 2026.
Why it matters
It ties Korea's industrial giants deeper into the US economy and shows the price allies now pay for market access; the yearly cash cap was meant to protect the won.
Think of it like
Like a tenant agreeing to fund the landlord's building upgrades in return for a capped rent increase.
Key facts and numbers
The November 2025 joint fact sheet, the investment memorandum, the Special Act on US investment (passed 226–8) and US Federal Register tariff notices. As of 2026.
What to watch
Outlook: how much money actually flows, who picks the projects, and how the deal holds after the US Supreme Court struck down the emergency-power tariffs in February 2026.
Connections (2)
▸South Korea's $350B US investment and tariff deal eased 2025–26 US tariffs ('Liberation Day')Fact
The relationship
Trump's 2025 tariffs threatened 25% on Korean goods and cars. The deal cut both to 15%, matching Japan and the EU, with the car rate backdated to November 2025, and promised Korean chips and medicines terms no worse than rivals get. In return Korea pledged $350 billion of US investment.
Since when and why
Framework in Washington on July 30, 2025; finalized at Gyeongju on October 29; the US published the car-tariff cut in December 2025.
How we know
US Federal Register notices, the November 2025 joint fact sheet and Korean trade ministry statements.
What to watch
After the Supreme Court voided the emergency tariffs in February 2026, Washington imposed new ones under other laws; whether Korea's bargain still guarantees a 15% ceiling is unclear.
▸South Korea's $350B US investment and tariff deal was concluded by Lee Jae-myungFact
The relationship
Lee personally closed the deal. He resisted paying $350 billion up front, warning it could trigger a 1997-style currency crisis, and won a $20 billion yearly cash cap plus shipbuilding cooperation branded 'Make American Shipbuilding Great Again'. He gave Trump a replica Silla gold crown at their Gyeongju summit.
Since when and why
White House summit, August 25, 2025, and Gyeongju summit on the APEC sidelines, October 29, 2025, with policy chief Kim Yong-beom and industry minister Kim Jung-kwan.
How we know
Presidential office briefings, Lee's interviews warning of a currency crisis, and the joint fact sheet released in November 2025.
What to watch
Debated: whether Lee struck a good bargain; critics say Korea pays too much for market access, supporters say it averted 25% tariffs and won a submarine deal.