South Korea said it had reached an agreement on the details of a long-awaited trade deal with the United States during President Trump’s visit to the country, securing concessions on how much cash it would need to invest in the United States.
Kim Yong-beom, President Lee Jae Myung’s chief of staff, announced the agreement on Wednesday after Mr. Trump and the South Korean leader met on the sidelines of the Asia-Pacific Economic Cooperation summit.
After months of back-and-forth negotiations, expectations were low for a trade deal to be finalized during Mr. Trump’s visit. South Korea agreed to a framework of a deal in July, but the two sides have struggled to find common ground on the details around Mr. Trump’s demand that South Korea commit to investing $350 billion in the United States.
Initially, there was confusion on Wednesday evening over whether the sides had come to an agreement. Before a dinner with other leaders at the summit, Mr. Trump said the United States had reached a deal with South Korea, but he seemed to walk back those comments a little later, saying it had nearly finalized a deal.
“Up until last evening, the prospects for an agreement were not bright,” Mr. Kim said. “But there was rapid progress today.” He didn’t elaborate. But he said South Korea had stuck to its principle of not sacrificing its national interest for the sake of a quick deal.
A Trump administration official did not immediately respond to a request for comment.
The United States had wanted a cash investment, but South Korea expressed concern that committing such a sizable sum of money could destabilize its currency.
Mr. Kim said that the United States will lower import tariffs on South Korean goods to 15 percent from the 25 percent rate that went into effect in August. In addition, he said the United States agreed to accept cash investments of up to $20 billion a year in projects that make “commercial sense,” and set aside another $150 billion to invest in its American shipbuilding operations.
South Korea, one of the most advanced shipbuilding countries, is at the forefront of Mr. Trump’s initiative to leverage foreign investment to turn around the U.S. industry, which has fallen behind China and other foreign rivals. South Korea has seemed to embrace its role, coining the slogan “MASGA,” or Make American Shipbuilding Great Again.
Choe Sang-Hun is the lead reporter for The Times in Seoul, covering South and North Korea.
Daisuke Wakabayashi is an Asia business correspondent for The Times based in Seoul, covering economic, corporate and geopolitical stories from the region.
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