South Korea and U.S. Forge $350 Billion Investment Framework
South Korea and the U.S. have established a non-binding framework for a $350 billion investment fund, following a July trade agreement. Differences remain in profit distribution and investment details. Plans include strategic industry support, and a task force has been created for detailed implementation.
On Monday, a top South Korean official announced that South Korea and the United States have decided on a non-binding agreement to define the operation and structure of a $350 billion investment fund. This follows a July trade deal where South Korea agreed to make these investments in exchange for reduced U.S. tariffs.
Kim Yong-beom, the presidential policy adviser, indicated that notable progress was made in Washington regarding the agreement. In talks with U.S. Commerce Secretary Howard Lutnick, Kim discussed overseeing the investment plan with a potential memorandum of understanding (MOU) in focus.
The investment, aimed at supporting strategic industries such as key minerals, batteries, chips, pharmaceuticals, and quantum computing, also allocates up to $150 billion for shipbuilding. Seoul is establishing a task force led by the finance ministry to oversee implementation amid disputes over profit-sharing terms with U.S. counterparts.
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