The United States and South Korea announced an economic security agreement: involving massive investment, tariff cuts, and defense expansion

The US and South Korea on Thursday unveiled a comprehensive economic and security agreement outlining plans for hundreds of billions of dollars in South Korean investment, as well as major US tariff concessions and expanded defence co-operation. Washington has approved $150 billion in South Korean investment in the US shipbuilding industry, according to the White House, in addition to committing $200 billion in "strategic investments" under a new memorandum of understanding. In a major military shift, the US has authorised South Korea to build nuclear-powered attack submarines, while Seoul has pledged to buy $25 billion in US military hardware by 2030 and unveiled plans to raise defence spending to 3.5 per cent of GDP "as soon as possible". South Korea has also pledged to provide a total of $33 billion in comprehensive support for US forces in South Korea under its domestic legal framework. On trade, the United States will reduce its Section 232 tariffs on South Korean cars, auto parts, lumber, and wood derivatives to 15 percent, and plans to impose a Section 232 tariff of no more than 15 percent on medicines originating in South Korea. At the same time, South Korea committed to removing quantitative restrictions on imports of unmodified U.S. cars 50,000 vehicles, and agreed to work with the United States to address non-tariff barriers affecting food and agricultural trade. (Kim Ten)