Presidential Office "U.S. reciprocal tariffs maintained at 15%… Pharmaceuticals, timber, etc. to receive most-favored-nation treatment"

South Korea and the United States have reportedly reached a final agreement on the detailed terms of tariff negotiations.

On the 29th (local time), the Presidential Office said in a briefing, "Today the two countries reached a final agreement on the detailed terms of the tariff negotiations."

According to the Presidential Office, the two countries agreed to maintain reciprocal tariffs at the 15% level today and to reduce tariffs on automobiles and parts to 15%. Semiconductor tariffs will be adjusted to a level that is not disadvantageous compared to Taiwan, and most-favored-nation treatment will be applied to some items such as pharmaceuticals and timber. Aircraft parts and some pharmaceuticals are expected to be switched to tariff-free status.

Also, under the principle of 'Commercial Rationality (Commercial Rationality)', a mechanism for recovering principal on U.S. investments will be specified in the memorandum of understanding (MOU).

In the investment cooperation sector, an agreement was reached for US$350 billion in investments in the United States. This consists of US$200 billion in cash investment and US$150 billion in shipbuilding cooperation, and an annual investment cap was set at US$20 billion to mitigate shocks to the foreign exchange market. In times of foreign exchange market instability, the timing and amount of investments can be adjusted.

The two countries also agreed to establish the 'MASGA' shipbuilding and energy cooperation fund, to be led by Korean companies and pursued in a form that includes corporate guarantees. To this end, a shipbuilding cooperation consultative body under the NSC (National Security Council) will be established and operated to produce visible results in a short period.

Security-related discussions were also held. The Presidential Office said, "President Trump expressed agreement with the need for South Korea to develop nuclear-powered submarines and proposed follow-up consultations." In addition, the two leaders agreed to continue strengthening the deterrence of the South Korea-U.S. alliance to respond to North Korea's nuclear threats.

National Security Advisor Wi Seong-rak said, "President Trump showed high interest in cooperation on key strategic industries such as nuclear power," and evaluated that "it is significant in that the United States has officially recognized the need for South Korea's nuclear submarine capability."

On the diplomatic front, President Trump said, "Contact me anytime if there is a difficult situation," and officially invited President Lee Jae-myung to the White House.