Trade deal with US brings relief, but worry over FX rates remain, says South Korean expert

Record ID: 2277470

  • Title: Trade deal with US brings relief, but worry over FX rates remain, says South Korean expert
  • Date: 14th November 2025
  • Summary: SEOUL, SOUTH KOREA (NOVEMBER 14, 2025) (REUTERS) (SOUNDBITE) (Korean) BUSINESS PROFESSOR AND PH.D. HOLDER IN ECONOMICS AT SEJONG UNIVERSITY, KIM DAE-JONG, SAYING: "South Korea and the United States had the Free Trade Agreement, under FTA there were no tariffs. As a result, South Korean cars were exported to the U.S. duty-free, while Japanese cars faced a 2.5% tariff. We ha
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  • Keywords: Seoul South Korea U.S. analyst chip deal dollar fact sheet foreign exchange investment shipbuilding tariff trade
  • Location: VARIOUS
  • City: VARIOUS
  • Country: South Korea
  • Topics: Asia / Pacific,Diplomacy/Foreign Policy,Government/Politics
  • Reuters ID: LVA005197114112025RP1
  • Aspect Ratio: 16:9
  • Story Text: South Korea and the United States finalised details of a trade agreement on Friday (November 14) that includes a $150 billion Korean investment in the American shipbuilding sector and an additional $200 billion earmarked for industrial sectors, the two countries said.
    Kim Dae-jong, Business Professor at Sejong University, who has PhD in economics, said the trade deal with United States brings relief, but worries over foreign exchange rates remain.
    The joint announcement followed a meeting in October between South Korean President Lee Jae Myung and U.S. President Donald Trump, where they agreed to a deal that would cut American import duties on South Korea's products to 15% from 25%.
    The two countries said that as part of the $350 billion South Korean investment into U.S. strategic sectors, Seoul would pay $200 billion in cash in phased installments that would be capped at $20 billion a year in an effort to maintain won stability.
    This figure represents almost half of South Korea's total foreign exchange reserves, leading to heightened concerns about the Korean won's stability.
    Washington and Seoul agreed to set tariffs on U.S. imports of Korean autos and auto parts at 15%, down from 25%, putting them on par with their Japanese competitors.
    A fact sheet released by the White House said the U.S. gave approval for South Korea to build nuclear-powered submarines and will work closely with Seoul to find "avenues to source fuel."
    The agreement with Washington showed Lee made inroads on major security and energy initiatives by paving the way to build nuclear-powered submarines and expanding its nuclear energy capabilities.
    Regarding semiconductors, it will be subject to tariff terms no less favorable than those for Taiwan, a presidential adviser said.
    Kim addressed semiconductors are South Korea's most important industry, so the government must ensure that South Korea is not disadvantaged compared with Taiwan or any other country.
    (Production: Minwoo Park, Yunji Ha)
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