[Full Text] Korea-U.S. Customs and Security "Joint Fact Sheet"

Joint Fact Sheet on the Meeting Between President Lee Jaemyung and President Donald Trump

Yonhap News Agency

The "Joint Fact Sheet (JFS)," which comprehensively covers customs and security negotiations between South Korea and the United States, was officially announced on November 14.

President Lee Jaemyung personally announced the finalization of the fact sheet during a briefing at the presidential office in Yongsan, Seoul, on the morning of November 14.

The following is the full unofficial Korean translation.

Joint Fact Sheet on the Summit Meeting between President Lee Jaemyung and President Donald Trump

President Lee Jaemyung of the Republic of Korea welcomed the state visit of President Donald J. Trump of the United States on October 29. This marks the first-ever state visit to Gyeongju in Korean history and follows the first meeting between the two leaders in Washington on August 25. Notably, this is also the first time Korea has hosted the same head of state twice as a state guest.

In light of President Trump's historic victory in the 2024 U.S. presidential election and President Lee's election, which demonstrated the resilience and strength of Korean democracy, the two leaders declared a new chapter for the ROK-U.S. alliance, a cornerstone for peace, security, and prosperity on the Korean Peninsula and in the Indo-Pacific region. ▲ Rebuilding and Expanding Key Industries President Lee and President Trump reaffirmed the historic "Korea Strategic Trade and Investment Agreement" announced in July, reflecting the strength and durability of the alliance.

ㅇ The two leaders welcomed South Korea's investments to enhance economic and national security interests in a wide range of sectors, including but not limited to shipbuilding, energy, semiconductors, pharmaceuticals, critical minerals, and AI and quantum computing.

ㅇ The agreement includes $150 billion in approved South Korean investment in the shipbuilding sector, as authorized by the United States.

ㅇ The agreement also includes an additional $200 billion in South Korean investment under a Memorandum of Understanding (MOU) on strategic investment, which is to be signed by representatives of both countries.

ㅇ The United States will apply, for reciprocal tariff purposes, the higher of the applicable Korea-U.S. Free Trade Agreement (FTA) or U.S. Most-Favored-Nation (MFN) tariff rate, or 15%, to Korean goods, pursuant to Executive Order No. 14257 dated April 2, 2025, and its amendments.

ㅇ The United States will reduce Section 232 tariffs on Korean automobiles and parts, logs, lumber, and wood products to 15%. For Korean goods subject to a Korea-U.S. FTA or U.S. MFN tariff rate of 15% or higher, no additional Section 232 tariffs will be imposed; for Korean goods with a tariff rate below 15%, the sum of the FTA or MFN tariff and the additional Section 232 tariff will total 15%.

ㅇ For any Section 232 tariffs imposed on pharmaceuticals, the United States will ensure that the Section 232 tariff rate on Korean goods does not exceed 15%.

ㅇ For any Section 232 tariffs imposed on semiconductors (including semiconductor equipment), the United States will ensure that the conditions provided to Korea are no less favorable than those that would be provided in any future agreement covering semiconductor trade volumes greater than Korea's current trade volume, as determined by the United States.

ㅇ The United States will eliminate additional tariffs imposed under Executive Order No. 14257 dated April 2, 2025, and its amendments, on certain goods listed under "Potential Tariff Adjustments for Aligned Partners," including generic pharmaceuticals, raw materials, chemical precursors, and certain natural resources not produced in the United States. The United States will also eliminate tariffs on certain Korean aircraft and parts under Executive Order No. 14257 and its amendments, Proclamation No. 9704 and its amendments, Proclamation No. 9705 and its amendments, and Proclamation No. 10962.

◆ Stabilizing the Foreign Exchange Market

Regarding the commitments in the MOU, South Korea and the United States thoroughly discussed the potential impact of the MOU on South Korea's foreign exchange market. Both countries reached a mutual understanding that the commitments in the MOU should not cause market instability. As trusted partners, both countries agreed that South Korea will not be required to raise more than $20 billion in any given year. South Korea will make every effort to minimize potential market impact by securing U.S. dollars through means other than direct market purchases whenever possible. If the implementation of the MOU commitments is expected to cause market instability, such as irregular fluctuations in the won, South Korea may request adjustments to the amount and timing of procurement, and the United States will review such requests in good faith.

◆ Strengthening Commercial Ties

The two leaders welcomed a series of commercial commitments in strategic sectors that reflect the private sector's confidence in the robust economic partnership between the two countries. ㅇ The two leaders welcomed the August announcement by South Korean companies of a total of $150 billion in direct investment in the United States during President Trump's term. Both countries will make every effort to ensure the smooth execution of these investments.

ㅇ The two leaders welcomed Korean Air's August announcement of the purchase of 103 Boeing aircraft equipped with GE Aerospace engines. This $36 billion commitment includes Boeing 737 MAX jets, 787 Dreamliners, 777X passenger and cargo aircraft, and is expected to bring Korean Air's total Boeing orders in 2025 to more than 150 aircraft.

ㅇ South Korea and the United States welcomed the "Buy America in Seoul" initiative, under which South Korea, in cooperation with U.S. state governments, will host an annual exhibition featuring U.S. companies, including small and medium-sized enterprises, to promote U.S. exports to Korea.

◆ Promoting Mutual Trade

The two leaders confirmed that the recently announced agreement reflects the shared goal of expanding mutually beneficial trade and investment. In line with the spirit of the agreement, South Korea and the United States will discuss non-tariff barriers and formalize commitments and implementation plans to promote mutual trade, which will be adopted by the Korea-U.S. FTA Joint Committee within the year. The agreement covers, but is not limited to, the following areas:

ㅇ South Korea will remove the cap of 50,000 units on the annual import of U.S.-origin vehicles that comply with U.S. Federal Motor Vehicle Safety Standards (FMVSS) without additional modifications. South Korea will also ease regulatory burdens on U.S. auto exports by not requiring documentation beyond what is submitted to U.S. certification authorities during the emissions certification process.

ㅇ South Korea will cooperate with the United States to discuss non-tariff barriers affecting food and agricultural trade. To this end, South Korea will ensure the implementation of existing commitments under bilateral agreements and protocols, streamline regulatory approval procedures for agricultural biotechnology products, resolve delays in U.S. applications, establish a dedicated "U.S. Desk" for requests related to U.S. horticultural products, and maintain market access for U.S. meat and cheese products using certain designations.

ㅇ South Korea and the United States commit to ensuring that U.S. companies are not subject to discrimination or unnecessary barriers in laws and policies related to digital services, including network usage fees and online platform regulation, and to facilitating cross-border data transfers, including location, reinsurance, and personal information. South Korea and the United States also support the permanent extension of the World Trade Organization (WTO) moratorium on customs duties on electronic transmissions.

ㅇ South Korea will establish additional procedural fairness rules in competition-related procedures, including recognition of attorney-client privilege.

ㅇ South Korea and the United States will cooperate to protect intellectual property rights. To this end, South Korea will continue to take necessary steps to accede to the Patent Law Treaty.

ㅇ South Korea and the United States commit to ensuring strong protection of internationally recognized labor rights. South Korea and the United States will cooperate to address all forms of forced labor globally, including responding to imports of goods produced by forced labor.

ㅇ South Korea and the United States reaffirm the importance of ensuring that differences in environmental protection do not distort trade and investment. To this end, South Korea will effectively enforce its domestic environmental laws to promote mutual trade, including faithful implementation of the WTO Fisheries Subsidies Agreement.

◆ Safeguarding Economic Prosperity

The two leaders recognized the need to strengthen economic and national security cooperation to maintain competitiveness and secure safe supply chains. This includes cooperation to prevent tariff evasion, complementary measures to address unfair and non-market policies and practices, and improvement of foreign and outbound investment regulations. Both countries will ensure that international public procurement obligations benefit countries that have accepted the same commitments.

◆ Modernizing the ROK-U.S. Alliance

The United States emphasized its defense commitment to South Korea through the continued stationing of U.S. forces in Korea.

ㅇ The United States reaffirmed its commitment to provide extended deterrence using the full range of its capabilities, including nuclear. The two leaders agreed to strengthen cooperation through consultative mechanisms, including the Nuclear Consultative Group (NCG).

ㅇ President Lee shared South Korea's plan to increase defense spending to 3.5% of GDP in accordance with Korean legal requirements as soon as possible, and President Trump welcomed this plan.

ㅇ South Korea also plans to spend $25 billion on the purchase of U.S. military equipment by 2030 and to provide comprehensive support valued at $33 billion for U.S. forces in Korea, in accordance with Korean legal requirements.

ㅇ The two leaders agreed to continue alliance-level cooperation for the transition of wartime operational control. With U.S. support, South Korea pledged to accelerate efforts to strengthen the essential military capabilities needed to lead combined conventional defense against North Korea. This includes the acquisition of advanced U.S. weapons systems and the expansion of bilateral defense industry cooperation, including advanced weapons systems.

ㅇ South Korea and the United States will strengthen U.S. conventional deterrence posture against all regional threats to the alliance, including those from North Korea. Both sides reaffirm the relevant understandings reached since 2006. Both sides will continue close consultations and report progress in implementation to their respective leaderships.

ㅇ South Korea and the United States committed to expanding cooperation in cyberspace and outer space. The two leaders also reaffirmed their intention to continue cooperation on artificial intelligence (AI) in the military domain.

◆ Cooperation on Korean Peninsula and Regional Issues

The two leaders pledged peace, security, and prosperity on the Korean Peninsula and in the Indo-Pacific region.

ㅇ The two leaders reaffirmed their commitment to the complete denuclearization of North Korea and to peace and stability on the Korean Peninsula, and pledged to cooperate in implementing the 2018 Singapore U.S.-North Korea Joint Statement.

ㅇ The two leaders agreed to closely coordinate on North Korea policy and urged North Korea to return to meaningful dialogue and comply with its international obligations, including abandoning its weapons of mass destruction (WMD) and ballistic missile programs.

ㅇ The two leaders agreed to strengthen trilateral cooperation with Japan.

ㅇ The two leaders reaffirmed their commitment to safeguarding freedom of navigation and overflight, as well as other lawful uses of the sea. The two leaders reaffirmed that all maritime claims by states must be consistent with international maritime law.

ㅇ The two leaders emphasized the importance of maintaining peace and stability in the Taiwan Strait. The two leaders encouraged the peaceful resolution of cross-strait issues and opposed unilateral changes to the status quo.

◆ Advancing Maritime and Nuclear Partnerships

The United States welcomed South Korea's commitment to modernize and expand the U.S. shipbuilding industry and its capabilities through investments in U.S. shipyards and workforce. South Korea welcomed U.S. support for Korean civilian and naval nuclear programs.

ㅇ South Korea and the United States will advance cooperation in shipbuilding through a working-level consultative body, covering maintenance, repair, workforce training, shipyard modernization, and supply chain resilience.

ㅇ These initiatives will, as quickly as possible, increase the number of U.S. commercial vessels and combat-capable military ships, including the potential construction of U.S. ships in South Korea.

ㅇ The United States supports procedures for the peaceful use of civilian uranium enrichment and spent nuclear fuel reprocessing by South Korea, consistent with the ROK-U.S. nuclear cooperation agreement and within the bounds of U.S. legal requirements.

ㅇ The United States has approved South Korea's construction of nuclear-powered submarines. To advance the requirements of this shipbuilding project, including fuel procurement, the United States will work closely with South Korea.