South Korea Secures U.S. Tariff Deal Amid Export Concerns

South Korea's industry minister announced on Monday that the nation averted the worst-case scenario by securing a deal with the United States to mitigate tariff impacts. However, there remain concerns over a 15% tariff's effect on the profitability of South Korean exporters.

During a meeting with business leaders and academics, Minister Kim Jung-kwan emphasized the challenges small and medium-sized companies face under the unprecedented tariff. Under the agreement with President Donald Trump, South Korea has pledged a substantial investment package worth $350 billion.

The investment, aimed primarily at strategic sectors like semiconductors, will also support the U.S. shipbuilding industry. Minister Kim stated that the South Korean government remains committed to ongoing negotiations with the U.S. to refine the details of the investment, ensuring benefits for the economy and businesses. No formal written agreement currently exists, highlighting the need for further discussions.

(With inputs from agencies.)