Historic U.S.-South Korea Tariff Agreement Unveiled

In a landmark agreement, South Korea and the United States have negotiated a 15% tariff on the majority of South Korean goods entering the U.S. This comes in exchange for a $350 billion South Korean investment in the American economy.

Experts in Seoul have largely welcomed the deal, which they believe lifts the veil of uncertainty that had been hovering over South Korean exports. Kathleen Oh, Chief Korea Economist at Morgan Stanley, emphasized that the agreement averts worst-case scenarios, offering Korea an equitable position among its U.S. export competitors, particularly in the automotive sector.

Key players such as Hyundai Motor Group and Samsung Electronics voiced optimism, underscoring their commitment to the U.S. market. Hyundai plans to invest an additional $21 billion by 2028, creating significant job opportunities. Despite this promising step, experts caution that the finer points of the deal remain crucial to understanding its full impact.

(With inputs from agencies.)