Kim Jeong-Kwan: "All Profits from $150 Billion 'MASGA' Investment to Go to Korean Companies"

Memorandum of Understanding on US-Korea Strategic Investment
Agreement Reached on Management of Total $350 Billion Investment

Kim Jeong-Kag, Minister of Trade, Industry and Energy, stated on November 14, "All profits generated from the US-Korea shipbuilding cooperation investment, which amounts to 150 billion dollars, will accrue to our companies."

On this day, Minister Kim made these remarks during a briefing on the "US-Korea Tariff Negotiation Fact Sheet and Memorandum of Understanding (MOU)" held at the Government Complex Seoul.

Kim Jeonggwan, Minister of Trade, Industry and Energy, and Yeo Hangoo, Chief Negotiator for Trade, are holding a briefing on the US-Korea tariff negotiation fact sheet and the memorandum of understanding on strategic investment at the Government Seoul Office in Jongno-gu, Seoul on November 14, 2025. Photo by Jo Yongjun

Minister Kim explained, "For projects approved by the investment committee related to the 150 billion dollar shipbuilding cooperation investment, the Korean government will support private sector investment in shipbuilding, guarantees, and ship financing either directly or through the consultative committee," adding, "There will be no profit-sharing mechanism applied to these investments."

On this day, Minister Kim signed the "MOU on US-Korea Strategic Investment" with US Secretary of Commerce Howard Lutnick, based on a detailed agreement regarding the management of a total of 350 billion dollars in strategic investment. This comes about three and a half months after a broad agreement was reached during the tariff negotiations on July 30.

The total 350 billion dollar strategic investment consists of 200 billion dollars in investment and 150 billion dollars in shipbuilding cooperation investment, which includes direct investment (FDI) by Korean companies, guarantees, and ship financing. Investment projects will be selected by the President of the United States based on recommendations from the investment committee chaired by the US Secretary of Commerce. However, the investment committee must first consult with the consultative committee, chaired by the Korean Minister of Trade, Industry and Energy, and will only recommend "commercially reasonable" investments to the US President. A commercially reasonable investment refers to one where the investment committee, acting in good faith, determines that sufficient recovery of the investment is guaranteed. The investment sectors include shipbuilding, energy, semiconductors, pharmaceuticals, critical minerals, artificial intelligence, and quantum computing, all of which serve to advance the economic and national security interests of both countries.

Project selection is scheduled to be completed by January 2029, when the term of US President Donald Trump ends. The profit distribution for the 200 billion dollar investment will be split 50:50 between Korea and the US until the principal and interest are repaid, after which the ratio will shift to 10:90 in favor of the US.

For the US-Korea shipbuilding industry cooperation project "MASGA (Make American Shipbuilding Great Again)," the Korean government will support private sector investment in shipbuilding, guarantees, and ship financing for projects approved by the investment committee, either directly or through the consultative committee.

Under this agreement, tariffs currently imposed on Korean automobiles and auto parts will be set at 15%, and tariffs on wood products will also be adjusted to a maximum of 15%. For pharmaceuticals, tariffs that are scheduled to be imposed in the future will be capped at 15%. In the case of semiconductors (including semiconductor equipment), conditions will be set so that Korea is not placed at a disadvantage compared to Taiwan, its main competitor, under any future agreement. The actual timing for the reduction of tariffs on automobiles and auto parts will be retroactively applied to the first day of the month in which the legislative bill to implement the strategic investment MOU is submitted to the National Assembly, as agreed by both countries.

Minister Kim said, "Both sides have engaged in intense negotiations, and at times, differences in positions led to deadlocks, but ultimately, we were able to reach a mutually beneficial agreement that allows the projects to proceed within the limits of our national capabilities and under the principle of commercial reasonableness. Above all, I will continue to do my utmost to ensure that the 350 billion dollars will benefit our companies and be used in a way that serves our national interests."

This content was produced with the assistance of AI translation services.