U.S. President Donald Trump and South Korean President Lee Jae Myung have finalized a long-awaited trade and investment deal during Trump’s visit to South Korea. The breakthrough came during his ongoing Asia tour and marks a major step in strengthening U.S.–Korea economic ties.
Speaking at a dinner on the sidelines of the Asia-Pacific forum in Gyeongju, Trump said the deal was “pretty much finalized.” He also sounded optimistic about his upcoming meeting with Chinese President Xi Jinping.
Under the new agreement, South Korea will invest $350 billion in the U.S. to avoid steep American tariffs. The fund includes $200 billion in cash installments, capped at $20 billion per year, and another $150 billion dedicated to shipbuilding, a sector Trump has vowed to revive.
In addition, both sides agreed to split profits evenly before recovering initial investments and to fund only commercially viable projects. U.S. Commerce Secretary Howard Lutnick will head a joint investment committee to oversee implementation.
The White House has not yet commented on the final details, and the agreement still requires ratification by South Korea’s parliament.
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Arriving from Tokyo just hours after North Korea test-fired a nuclear-capable cruise missile, Trump was warmly received in South Korea. President Lee awarded him the nation’s highest honor, the Grand Order of Mugunghwa.
Despite the missile test, Trump told reporters he remained focused on trade diplomacy. “I think we’re going to have a very good outcome for our country and for the world,” he said.
Meanwhile, the U.S. is reportedly preparing to reduce tariffs on Chinese goods if Beijing agrees to limit exports of fentanyl precursor chemicals. The move could ease the long-running trade dispute between the nations.
During the talks, South Korea pledged to boost defense spending and asked Washington for permission to reprocess nuclear fuel for submarines a request still restricted under existing U.S.–Korea agreements.
Although Trump had previously suggested meeting North Korean leader Kim Jong Un, he confirmed the timing would not work during this trip.
Outside the summit venue, hundreds of protesters clashed with police, accusing global leaders of flattering Trump to gain economic concessions. “World leaders are busy flattering Trump just to get him to lower tariffs,” said opposition figure Kwon Young-guk. “It’s absurd.”
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According to South Korean officials, a detailed factsheet outlining the trade and security agreements will be released in the coming days.
A memorandum of understanding is also nearing completion to finalize the investment framework.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
