It includes US$350 billion in South Korean investments in the U.S. and a 15% reciprocal tariff framework.

On Wednesday, U.S. President Donald Trump announced that he had reached an agreement with South Korean President Lee Jae-myung to sign a trade deal.

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His remarks came during a dinner with other heads of state attending the Asia-Pacific Economic Cooperation (APEC) forum, which is holding its leaders’ summit in the South Korean city of Gyeongju.

Kim Yong-beom, South Korea’s chief of staff for political affairs, said both countries agreed on how to finance the US$350 billion investment that Seoul pledged to make in the United States in exchange for Washington setting reciprocal tariffs at 15%.

Kim said South Korea agreed that US$200 billion of the investment would be made in cash, with an annual limit US$20 billion.

The Trump-Lee meeting had been met with skepticism about whether it would produce concrete results, as the two countries had differed on the proportion of cash investment demanded by Washington.

South Korean negotiators, who made several trips to Washington in the weeks leading up to Wednesday’s meeting, had warned that both sides remained divided on key points.

During the meeting, Lee pledged to increase military spending as requested by Washington. The South Korean president also honored Trump with the Grand Order of Mugunghwa — the nation’s highest decoration — and presented him with a replica of a golden crown from an ancient Korean dynasty.

Trump arrived in South Korea as the final stop of his Asian tour, which also took him to Malaysia and Japan. He is scheduled to meet Thursday in the South Korean city of Busan with Chinese President Xi Jinping — their first encounter since the Republican politician returned to the White House in January.

teleSUR/ JF

Source: EFE

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