South Korea and the United States reached a $350 billion investment agreement, with $200 billion to be invested annually.

Han media: South Korea and the U.S. have reached an agreement on investing 350 billion USD in the U.S., with 200 billion USD in cash, and annual investment not exceeding 20 billion USD

The scale and structure of the investment in the U.S. by South Korea and the U.S. are similar to Japan's previous 550 billion USD financial plan signed with the U.S., but South Korea has set a ceiling on the annual investment amount.

On the 29th, Kim Yong-bum, Director of the Presidential Policy Office, stated, "The 200 billion USD investment is not a one-time investment, but will be gradually invested according to the progress of the project within the limit of no more than 20 billion USD per year, so our foreign exchange market has the capacity to cope."

South Korea's investment in the U.S. also includes a mechanism for recovering the principal. The presidential office explained that by clearly writing in the "commercial rationality" (commercial rationality) clause, it ensures that no disorderly investment will be made.

In addition, South Korea and the U.S. agreed to maintain bilateral tariffs at 15%, and the tariff on automobiles, which account for a large proportion of South Korea's exports to the U.S., was adjusted to the same 15% as Japan's.

Kim Yong-bum added, "There is no additional opening of agricultural sectors including rice and beef."

Source: JoongAng Daily

Original: www.toutiao.com/article/1847323579159616/

Statement: This article represents the personal views of the author.