TURKISH CENTER for ASIA PACIFIC STUDIES
President Lee Jae Myung (R) watches U.S. President Donald Trump signing a visitor's book during their summit at the Gyeongju National Museum in the southeastern city of Gyeognju on Oct. 29, 2025, in this file photo provided by his office. (Yonhap)
SEOUL, Nov. 14 (Yonhap) -- President Lee Jae Myung has upgraded South Korea's alliance with the United States into a future-oriented strategic partnership by finalizing massive Korean investment pledges in key U.S. sectors and securing U.S. approval for expanded access to nuclear fuel for submarine development.
South Korea and the U.S. released a joint fact sheet earlier in the day, roughly two weeks after Lee's summit with U.S. President Donald Trump, clearing one of the major policy hurdles the Lee administration faced in its first five months in office.
Following the announcement, the two nations signed a memorandum of understanding (MOU) formalizing Seoul's US$350 billion investment pledge in exchange for lower U.S. tariffs on Korean goods from 25 percent to 15 percent.
"The Korea-U.S. trade negotiations and security consultations, one of the biggest variables for our economy and national security, have been finally concluded," Lee said in a televised briefing.
He said the two sides reached "the best possible outcome" based on the solid trust underpinning the alliance.
Under the final terms, the investment will include $150 billion for bilateral shipbuilding cooperation in addition to $200 billion in cash installments with an annual cap at $20 billion, considering its potential impact on the Korean financial market.
"Just as good competition requires an excellent partner, President Trump's rational and decisive judgment played a major role in producing such meaningful negotiation outcomes," he said.
Lee declared that the sweeping agreements mark "a renaissance" of the bilateral alliance.
"With this, the Korea-U.S. alliance has evolved and deepened into a future-oriented, comprehensive strategic alliance encompassing security, the economy and advanced technology," he said.
The centerpiece of the investment is the shipbuilding industry, as South Korea seeks to become a key U.S. partner in Washington's effort to revive its shipbuilding sector and enhance competitiveness against China. The agreement includes the potential construction of U.S. commercial and military vessels in South Korea.
The deal eased uncertainties in major Korean export industries, particularly autos and semiconductors.
Under the deal, the U.S. will reduce sectoral tariffs on Korean automobiles and auto parts to 15 percent, matching them with the rates applied to Japan and the European Union.
Washington also agreed to set semiconductor tariff rates "no less favorable" than those applied to Korea's competitors, such as Taiwan, Kim Yong-beom presidential chief of staff for policy, said.
On security, the agreement marks a major breakthrough for Seoul's long-sought goals of building its own nuclear-powered submarine and securing its own spent fuel reprocessing capability.
Lee hailed the U.S. approval for South Korea's bid to construct a nuclear-powered submarine, calling it "an essential strategic asset" the country has pursued for decades.
He also welcomed U.S. support for expanding rights related to uranium enrichment and spent nuclear fuel reprocessing, calling it a "meaningful step forward."
The agreement reinforces Washington's security commitment and expands South Korea's role in its own defense.
The U.S. reaffirmed its commitment through the continued presence of the 28,500-strong U.S. Forces Korea and reiterated its extended deterrence pledge, including nuclear capabilities.
Lee also shared Seoul's plan to raise defense spending to 3.5 percent of gross domestic product as soon as possible, a move Trump welcomed.
Lee's push to regain wartime operational control within his five-year term is also expected to gain momentum after Washington expressed its backing for the plan.
On Korean Peninsula issues, the two leaders reaffirmed their commitment to the "complete denuclearization" of North Korea and agreed to coordinate closely on policy, urging Pyongyang to return to meaningful dialogue.
Trump has repeatedly expressed openness to reengaging North Korean leader Kim Jong-un, fueling speculation that he may seek to revive his personal diplomacy with Kim. Lee asked Trump to act as a "peacemaker," pledging to assist the diplomatic effort as a "pacemaker" during their August summit at the White House.
Trump met with Kim three times during his first term – in Singapore in June 2018, Hanoi in February 2019 and the inter-Korean truce village of Panmunjom in June 2019.
By Kim Eun-jung
Source: Yonhap News Agency
S. Korea, U.S. upgrade alliance to comprehensive, strategic partnership with trade, security
November 14, 2025