Slight Differences from Government's Explanation on Parity with Taiwan
$200 Billion to Be Invested in Alaska Gas Pipeline, Critical Minerals, AI, and More
"Korea Agrees to Fully Open Its Market 100%"
Howard Lutnick, U.S. Secretary of Commerce, stated that "semiconductor tariffs are not part of this agreement." This differs somewhat from the South Korean government's explanation that tariffs would be applied at a level similar to those imposed on Taiwan, leading to expectations that further detailed negotiations between South Korea and the United States regarding semiconductor tariffs will take place.
Howard Lutnick, U.S. Secretary of Commerce, is attending the Korea-U.S. Business Roundtable event at the Asia-Pacific Economic Cooperation (APEC) CEO Summit held on October 29 at the Gyeongju Arts Center in Gyeongbuk. 2025.10.29 Photo by Kang Jinhyung
On October 30, the day after the two countries concluded their tariff negotiations, Secretary Lutnick listed the tariff rates to be applied to Korean products under the new agreement via X (formerly Twitter), reiterating his position.
Previously, the South Korean government explained in a trade negotiation briefing that "for the semiconductor sector, it was agreed that tariffs would be applied at a level not less favorable than those imposed on Taiwan, a major competitor." As a result, there is speculation that additional negotiations may be held between the two countries regarding the specific application and scope of semiconductor tariffs.
Secretary Lutnick also stated, "President Trump had an excellent meeting with President Lee Jaemyung of the Republic of Korea," and announced that, as a result of this meeting, South Korea had agreed to invest 350 billion dollars in the United States. He added, "This investment will be approved and executed according to President Trump's instructions."
Regarding the 350 billion dollar investment in the United States, Secretary Lutnick explained, "Trump designated shipbuilding as the first investment sector, with at least 150 billion dollars to be invested in ship construction within the United States." He continued, "Leading Korean shipbuilding companies have also been approved to build nuclear-powered submarines in Philadelphia. The revitalization of the U.S. shipbuilding industry is essential for national security."
He further explained that President Trump plans to invest an additional 200 billion dollars in U.S. projects, including the Alaska natural gas pipeline, energy infrastructure, critical minerals, artificial intelligence (AI), and quantum computing.
Secretary Lutnick also stated, "South Korea has agreed to fully open its domestic market 100%," but did not specify which sectors this market opening would cover.
President Trump also posted on his social media platform, Truth Social, that "the total amount to be invested in the United States by Korean companies and entrepreneurs will exceed 600 billion dollars," but did not provide further details. U.S. political media outlet Politico reported, "The fact that a joint statement has not yet been issued by the two countries suggests that both sides are still working out the details."
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