South Korea and the U.S signed a deal to reduce U.S tariffs on the former’s imports to 15% from the proposed 25%. In return, Seoul would invest $350 billion in the U.S.
It will be used to offer loans and investments, allowing Korean shipbuilders to expand and solidify their position in the U.S. market.
The idea of the Korean investment was being discussed for months as a bargaining chip in trade negotiations between the two countries.
The news came after Japan decided on a USD 400 billion industrial investment.
President Trump, however, gave a different message on social media, saying Seoul would provide the U.S. with $350 billion for investments controlled by the U.S. and ‘selected by myself’.
U.S. shipbuilding centres around its defence sector, which has been the target of top Korean shipyards for many years.
Korea’s Big Three have skills and expertise; however, they face a reduction in market share due to a shortage of labour in the country and competition from
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