Hey everyone 🌟, South Korea and the United States just wrapped up a major tariff & security pact at their Oct 29 summit. Here is the lowdown:
$350B Investment Boost: South Korea will pour $150 billion into shipbuilding (US-approved) plus $200 billion into other strategic sectors. Think next-gen vessels and high-tech hubs! 🚢🔧
15% Tariff Cap: The US will cap tariffs at 15 percent on SK-origin goods – from automobiles and auto parts to timber, wood products and pharmaceuticals. Extra tariffs on generics, rare resources and SK-made aircraft parts? Gone! 💊🪵✈️
When is the Drop? Yonhap News Agency notes the timeline for cutting auto tariffs from 25 percent to 15 percent is still under wraps. Industry pros say real relief could take 1-2 months, so expect short-term cash flow pressure. ⏳💸
Auto Industry Outlook: Remember, SK car exports to the US used to sail in tariff-free. Now a 15 percent rate is an upgrade, but as Prof. Kim Pill-soo from Daelim University College points out, the tariff cloud hasn't fully cleared.
Security Upgrade: The US reaffirmed its extended deterrence pledge, while SK plans to lift defense spending to 3.5 percent of GDP ASAP. Seoul will also fund US Forces Korea with $33 billion and buy $25 billion of US military gear by 2030. Oh, and SK got the green light to build nuclear-powered attack submarines! ⚓🚀
For young pros across South and Southeast Asia, this deal hints at cheaper Korean cars and meds down the line, plus a stronger regional security vibe. Stay tuned as these moves unfold and shape our neighborhood's future! 🤝
Reference(s):
cgtn.com
