Joint Fact Sheet on President Donald J. Trump’s Meeting with President Lee Jae Myung – The White House

On October 29, President Lee Jae Myung of the Republic of Korea (ROK) extended a warm welcome to President Donald J. Trump of the United States for a State Visit, marking a historic occasion as it is the first State Visit hosted in Gyeongju. This event follows their initial meeting in Washington on August 25, and notably, it is also the first instance where the ROK has welcomed the same leader for a second state visit.

In light of President Trump’s remarkable 2024 electoral success and President Lee’s election, which underscores the democratic resilience of the ROK, the two leaders proclaimed a new chapter in the U.S.-ROK Alliance—an alliance considered vital for peace, security, and prosperity on the Korean Peninsula and across the Indo-Pacific region.

REBUILDING AND EXPANDING CRITICAL INDUSTRIES

During their discussions, Presidents Trump and Lee reaffirmed the landmark announcement made in July regarding the Korea Strategic Trade and Investment Deal, which signifies the enduring robustness of the U.S.-ROK Alliance.

• Both leaders expressed enthusiasm for increased Korean investments across various sectors to bolster economic and national security interests. These sectors include, but are not limited to, shipbuilding, energy, semiconductors, pharmaceuticals, critical minerals, and artificial intelligence/quantum computing.
• The deal encompasses a substantial $150 billion Korean investment in the shipbuilding sector, which has received approval from the United States, referred to as the Approved Investments.
• Additionally, the deal will see $200 billion in further Korean investments as part of a Memorandum of Understanding (MOU) pertaining to Strategic Investments, which is anticipated to be signed by representatives from both nations.
• The United States has committed to applying the more favorable tariff rate between the U.S.-Korea Free Trade Agreement (KORUS FTA) or the U.S. Most Favored Nation (MFN) tariff rate on originating goods from the ROK, or a 15 percent tariff under Executive Order 14257, as amended, which takes effect on April 2, 2025.
• Section 232 tariffs on ROK automobiles, auto parts, timber, lumber, and wood derivatives will be reduced to 15 percent, streamlining trade relations. For products with an existing KORUS FTA or MFN tariff rate at or above 15 percent, no additional Section 232 tariff will apply.
• For pharmaceuticals, the U.S. intends to maintain a Section 232 tariff rate no greater than 15 percent on originating goods from the ROK.
• The U.S. will also ensure that Section 232 tariffs on semiconductors and semiconductor manufacturing equipment will be structured favorably for Korea, aligning with future agreements on semiconductor trade volumes.
• Furthermore, certain tariffs related to Executive Order 14257 will be lifted for specific products, including generic pharmaceuticals and aircraft parts from the ROK, promoting trade fluidity.

FOREIGN EXCHANGE MARKET STABILITY

The U.S. and ROK have engaged in comprehensive discussions regarding the implications of the MOU on foreign exchange market stability. Both nations have reached a consensus that commitments in the MOU should not destabilize the market. As trusted partners, they agree that the ROK will not be required to fund more than $20 billion in U.S. dollars in any given year. The ROK will strive to source these dollars through alternative means to mitigate market impact. Should there be any signs of market instability, the ROK may request adjustments to the funding amounts and timing, with the U.S. agreeing to consider such requests in good faith.

ENHANCING COMMERCIAL TIES

The two leaders celebrated a series of commercial commitments in strategic sectors, reflecting the private sector’s confidence in this burgeoning economic partnership.

• The announcement made in August regarding ROK companies pledging $150 billion in foreign direct investments in the United States during President Trump’s administration was welcomed, with both nations committing to facilitate these investments.
• Korean Air (KAL) announced a significant purchase order of 103 Boeing aircraft, valued at approximately $36 billion. This order will include a diverse fleet of Boeing 737 MAX jets, 787 Dreamliners, and 777X passenger and freighter planes, bringing KAL’s total orders for 2025 to over 150 aircraft.
• The U.S. and ROK endorsed the Buy America in Seoul initiative, which will involve annual exhibitions organized by the ROK in collaboration with State Governments to promote U.S. goods in Korea, emphasizing support for Small and Medium-sized Enterprises.

PROMOTING RECIPROCAL TRADE

Both leaders acknowledged that the recently unveiled deal embodies a shared objective of enhancing mutually beneficial trade and investment. To this end, they pledged to address non-tariff barriers and formalize commitments and action plans to promote reciprocal trade, with implementation expected by the KORUS Joint Committee by year-end. This includes:

• The elimination of the 50,000-unit cap on U.S.-originating Federal Motor Vehicle Safety Standards (FMVSS)-compliant vehicles entering the ROK without modifications. Regulatory burdens for U.S. automotive exports will also be eased.
• Joint efforts to tackle non-tariff barriers affecting food and agricultural trade, streamlining regulatory processes for agricultural biotechnology products and ensuring timely approvals for U.S. applications.
• A commitment to prevent discrimination against U.S. companies in digital services, while facilitating the cross-border transfer of data, including personal information, thereby supporting a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization.
• The ROK will enhance procedural fairness provisions in competition proceedings, including recognizing attorney-client privilege.
• Both nations will collaborate to protect intellectual property rights, with the ROK taking steps to accede to the Patent Law Treaty.
• The U.S. and ROK will work jointly to uphold internationally-recognized labor rights and combat forced labor globally, reinforcing commitments against the importation of goods produced through such means.
• Environmental protection disparities will be addressed to prevent trade distortions, with the ROK committing to enforce environmental laws and fully implement the WTO Agreement on Fisheries Subsidies.

PROTECTING ECONOMIC PROSPERITY

The two leaders recognized the necessity of strengthening economic and national security alignment to maintain competitiveness and secure supply chains. This includes cooperation to combat duty evasion, address unfair practices, and ensure international procurement obligations benefit those nations adhering to similar commitments.

MODERNIZING THE U.S.-ROK ALLIANCE

The United States reaffirmed its dedication to the defense of the ROK through the continued presence of U.S. Forces Korea (USFK).

• The U.S. reiterated its commitment to extended deterrence, utilizing its full range of capabilities, including nuclear options. Both leaders agreed to enhance cooperation through consultation mechanisms like the Nuclear Consultative Group.
• President Lee outlined the ROK’s intention to increase its defense spending to 3.5% of GDP as soon as feasible, a move welcomed by President Trump.
• The ROK also committed to a $25 billion investment in U.S. military equipment purchases by 2030 and pledged $33 billion in support for U.S. Forces Korea, aligning with ROK legal requirements.
• Both leaders are dedicated to continuing alliance cooperation toward the transition of wartime operational control, with the ROK pledging to bolster its military capabilities for a robust defense against the Democratic People’s Republic of Korea (DPRK).
• The U.S. and ROK will enhance conventional deterrence against regional threats, affirming relevant understandings established since 2006, while continuing close consultations to monitor progress.
• Cooperation in cyberspace and outer space will be expanded, alongside shared intentions to advance military applications of artificial intelligence.

COORDINATING ON KOREAN PENINSULA AND REGIONAL ISSUES

The two leaders reiterated their commitment to ensuring peace, security, and prosperity on the Korean Peninsula and in the Indo-Pacific region.

• They reaffirmed their dedication to the complete denuclearization of the DPRK and promised to collaborate on implementing the Joint Statement from the 2018 U.S.-DPRK Singapore Summit.
• Close coordination on DPRK policy was agreed upon, with a call for the DPRK to engage in meaningful dialogue and fulfill its international obligations by dismantling its weapons of mass destruction (WMD) and ballistic missile programs.
• The leaders also pledged to strengthen trilateral partnerships with Japan.
• They underscored the importance of upholding freedoms of navigation and overflight in compliance with international maritime law, emphasizing that all nations’ claims must align with these regulations.
• Moreover, they highlighted the critical need to sustain peace and stability across the Taiwan Strait and advocated for the peaceful resolution of cross-Strait issues, denouncing any unilateral attempts to alter the status quo.

FURTHERING OUR MARITIME AND NUCLEAR PARTNERSHIP

The United States welcomed the ROK’s commitment to modernizing and expanding American shipbuilding capacity through investments in U.S. shipyards and workforce development. The ROK reciprocated by expressing appreciation for U.S. support for its civil and naval nuclear power programs.

• Both countries agreed to collaborate further through a shipbuilding working group focused on maintenance, repair, workforce development, modernization of shipyards, and enhancing supply chain resilience.
• These initiatives aim to expedite the increase of U.S. commercial and military vessels, including potential construction of U.S. vessels in the ROK.
• Following the bilateral 123 agreement and U.S. legal requirements, the U.S. supports the ROK’s move towards civil uranium enrichment and spent fuel reprocessing for peaceful purposes.
• Additionally, the United States has approved the ROK’s pursuit of building nuclear-powered attack submarines and will work closely with the ROK to advance the requirements for this significant shipbuilding project, including fuel sourcing opportunities.