SEOUL/WASHINGTON, D.C.: South Korea will invest US$350 billion in U.S. industry and receive approval to build nuclear-powered submarines, under the terms of a sweeping trade and security agreement unveiled on November 14 by Washington and Seoul.

The deal follows a summit last month between South Korean President Lee Jae Myung and U.S. President Donald Trump, and marks a diplomatic milestone for Lee just five months into office. It also brings an end to months of wrangling over U.S. tariffs on South Korean goods.

Under the agreement, $150 billion will be directed into the U.S. shipbuilding sector, while $200 billion more is earmarked for industrial investment. In exchange, U.S. import duties on South Korean products—including autos—will be reduced to 15 percent from 25 percent.

"Finally, the South Korea-U.S. trade, commerce, and security negotiations, which were among the biggest variables affecting our economy and security, are ... concluded," Lee said. "Good competition requires excellent partners, and I believe President Trump's rational decision played a significant role in achieving meaningful agreement."

The agreement includes a 27-point non-binding memorandum of understanding, signed by South Korea's Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick. It outlines a timeline for the U.S. president's project selection, after which Seoul must transfer funds within 45 days.

The deal also paves the way for South Korea to build nuclear-powered submarines, a long-sought defense capability. A White House fact sheet said the U.S. would work closely with Seoul to secure fuel sources. Lee's national security adviser confirmed that the vessels are expected to be built in South Korea. However, Trump previously suggested construction would take place at a Korean-owned shipyard in Philadelphia.

Washington also agreed to limit annual cash transfers to $20 billion, in an effort to preserve currency stability. If the inflows threaten to destabilize the won, South Korea can seek a change in schedule, which the U.S. would consider "in good faith."

The White House said South Korean semiconductors would receive tariff terms "no less favourable" than those granted to Taiwan.

President Lee framed the agreement as a win for both sides—particularly in AI, nuclear energy, and defense cooperation—adding that South Korea would help the U.S. "rebuild crucial industries just as the U.S. helped South Korea in the past."

Analysts remain divided on the long-term balance of the agreement. Kim Dong-yup, a former Navy officer now at Kyungnam University, said the nuclear commitments came at a steep price: "Lee was faced with an inevitable choice."

A preliminary version of the deal was first floated in July. The final agreement comes at a time when South Korea had feared that steep tariffs on exports like semiconductors and autos would undermine its economy.