Trump announced a breakthrough in the entry on his Truth Social portal.
“The agreement provides that South Korea will transfer $ 350 billion to the United States to investments owned by the United States and controlled by them, and I chose as president. South Korea will also buy LNG or other energy products worth $ 100 billion, and South Korea agreed to invest a significant sum of money for its investment goals,” wrote Trump.
He announced that further details, including the investment amount, is to be announced during the visit of the new president of the country Lee Jae Myung in the White House in two weeks. According to Trump, Seul also agreed to open the South Korean market to American cars or agricultural products, and give up customs duties on goods from the USA.
In a statement made available on Facebook, Lee emphasized that the agreement was “Task at a high rate”, implemented under time pressure and in complex international conditions.
“The agreement eliminates the key uncertainties that Korean exporters face, and ensures that the US customs rates for goods from Korea are equal or lower than those who are subject to the main competitors of Korea exports” – Lee noted, adding that Korea can compete on favorable conditions on the American market compared to key countries.
Asian US ally
The description of the agreement by Trump shows that it is similar to the one previously concluded with Japan. In that case, the Japanese authorities seemed to interpret arrangements about investments in the USA differently (they are to be $ 550 billion). According to the South Korea Minister of Finance, quoted by the Reuters Agency. Koo Yoon-Cheola, Seul agreed to invest, among others in the American shipbuilding industry and critical minerals. He also stated that negotiations on regulations constituting a barrier to American food and cars would continue.
South Korea is one of the last US allies, who concluded the framework of the agreement before the end of July, when, according to Trump's announcement, they have higher duties on goods from many other countries. On Wednesday, the White House informed about the determination of the conditions of agreements with Pakistan, Thailand and Cambodia, and announced the higher duties for India (25 % plus “punishment” for buying Russian raw materials) and Brazil (50 % as a penalty for the trial against former President Jair Bolsonaro).
