(MENAFN) South Korea and the United States formalized a $350 billion investment agreement on Friday, pledging lower US tariffs in return for Seoul’s financial commitments, according to the South Korean Ministry of Trade, Industry and Resources.

The memorandum of understanding (MOU) was electronically signed by South Korean Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick. The agreement builds on discussions held during US President Donald Trump’s visit to South Korea last month, where both sides settled key trade terms.

Under the pact, South Korea will invest $200 billion through cash installments, capped at $20 billion per year, alongside $150 billion allocated for bilateral shipbuilding cooperation. In exchange, Washington will reduce reciprocal tariffs on South Korean imports to 15%, as agreed in July.

Separately, the United States approved South Korea’s plans to construct nuclear-powered submarines and committed to close collaboration on meeting the project’s requirements, including fuel sourcing. Talks are ongoing regarding joint development of nuclear submarines, with officials considering Korean-led production across facilities in both countries. Initial steps may involve US-class submarines before transitioning to South Korea’s indigenous designs.

No official statement was released by either government confirming the details reported regarding submarine development.

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