On Thursday, shares of South Korean automakers and shipbuilders surged as Seoul and Washington finalized a trade deal initially announced in July.
The specifics of the agreement were released following a meeting between President Lee Jae Myung and U.S. President Donald Trump and involve reduced U.S. tariffs on South Korean products in return for a $350 billion investment commitment from Seoul. This move is anticipated to have significant implications for trade relations and defense collaboration between the two countries.
The share price of Hanwha Ocean advanced by as much as 14.9%, with Samsung Heavy Industries also reaching a peak gain of 8.33%. Defense products manufacturer Firstec rose to 9.7%. Among automakers, Hyundai and Kia registered increases of approximately 12% and 9%, respectively.
According to the new arrangement, U.S. levies on South Korean exports will be lowered to 15%, down from the previous 25% rate. Of the $350 billion investment pledge from South Korea, $200 billion is designated for direct investment—capped at $20 billion annually—and $150 billion allocated to the shipbuilding sector, as reported by chief policy advisor Kim Yong-beom.
Trump indicated via Truth Social that he had approved for South Korea to advance its first nuclear submarine project at the Philadelphia Shipyards.
As part of the shipbuilding cooperation, Hanwha made a $5 billion investment into the Philly Shipyards in August, aligning with the broader $150 billion commitment.
Alex Wong, Hanwha’s Chief Strategy Officer, explained that with shipbuilding now a central focus of the U.S.-Korea alliance under the leadership of President Trump and President Lee, Hanwha is prepared to support this vision using its advanced shipbuilding capabilities.
In addition, a local media outlet, Yonhap, has reported that a comprehensive fact sheet detailing both the trade and security of the U.S.-South Korea agreement will be released in the coming days.
