Analysis of the US-Korea Joint Fact Sheet: $350 Billion Investment Package and Redefinition of Strategic Alliance

The joint fact sheet released on November 14, 2025, by the US and Korean leaders is interpreted not just as a diplomatic declaration but as a strategic blueprint responding to changes in the global economic and security environment. The $350 billion investment plan in the US aligns with America’s manufacturing renaissance and supply chain restructuring policies, while simultaneously serving as a strategic move for Korean companies to secure global competitiveness. This agreement is a representative example of the US-Korea alliance evolving into a comprehensive partnership encompassing economic and traditional security areas amidst the changing international landscape post the 2024 US presidential election.

The global shipbuilding industry is paying attention to the ripple effects of this investment plan on the industry landscape. As Korean shipbuilders like Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering are expected to accelerate their entry into the US market, there is also anticipation of a counterbalance to the market share expansion of Chinese shipbuilders. Particularly under the Jones Act, which necessitates the construction and operation of shipyards within the US, the collaboration combining Korean shipbuilders’ technology and US market accessibility offers a win-win structure for both countries. With the global shipbuilding market expected to grow from $150 billion in 2024 to $210 billion by 2030, Korean companies’ entry into the US market will be an opportunity to secure new growth drivers.

The expansion of cooperation in the semiconductor sector should be understood in the macro context of global semiconductor supply chain restructuring. The increased US investments by Korean semiconductor companies, led by Samsung Electronics and SK Hynix, are analyzed to create significant synergies in conjunction with the US CHIPS Act. Samsung Electronics is already investing $17 billion in a foundry plant in Taylor, Texas, while SK Hynix is investing $3.9 billion in a packaging facility in Indiana. The preferential conditions for Korean semiconductor products mentioned in the fact sheet are expected to further enhance the economic viability of these investments. As the global semiconductor market is projected to surpass $1 trillion by 2030 from $574 billion in 2024, US-Korea cooperation will act as a key strategy to counter China’s semiconductor ambitions.

Economic Impact of the Large-Scale Investment Package and Tariff System Adjustment

The $350 billion investment plan in the US is the largest overseas investment project in Korean economic history, equivalent to about 20% of Korea’s GDP in 2024. This investment is estimated to consist of $120 billion in shipbuilding, $100 billion in semiconductors, $80 billion in energy, and $50 billion in other industries. In particular, the energy sector investment is expected to focus on nuclear power plant construction and renewable energy projects led by Korea Electric Power Corporation and Korea Hydro & Nuclear Power. As the US plans to expand its nuclear power capacity from the current 95GW to 150GW by 2035, Korean nuclear technology is analyzed to play a crucial role in the US energy transition policy.

The adjustment of the US tariff system is expected to provide significant competitive advantages to Korean manufacturers. With the existing tariff rate on most Korean products consolidated to around 15%, Korean companies’ access to the US market is projected to improve significantly. In particular, for Hyundai and Kia, the reduction of the passenger car tariff from the existing 25% to 15% is expected to enhance price competitiveness. The preferential conditions in the semiconductor and pharmaceutical sectors are even more striking. The tariff benefits for Korean biotech companies like Samsung Biologics and Celltrion in the US market are estimated to result in annual cost savings of $1.5 billion. Additionally, the removal of additional tariffs on certain aircraft and pharmaceuticals will provide new opportunities for Korea Aerospace Industries (KAI) and domestic pharmaceutical companies.

The annual $20 billion procurement limit proposed as a foreign exchange market stabilization measure is evaluated as quite generous considering Korea’s external investment scale. Given that Korea’s annual foreign direct investment is about $47 billion as of 2023, this limit serves more as a safety mechanism for market stability rather than a substantial constraint. With the currency swap agreement between the Bank of Korea and the US Federal Reserve currently at $60 billion, the foreign exchange market cooperation between the two countries is interpreted as establishing an effective response system to global financial instability. Particularly as the international influence of the Chinese yuan expands and challenges to dollar hegemony persist, US-Korea foreign exchange cooperation will play an important role in securing financial stability in the Asia-Pacific region.

Impact of Private Sector Investment and Trade Barrier Easing by Industry

The announcement of a $150 billion US investment by Korean companies is an example of Korea’s globalization strategy beyond the level of individual companies. Korean Air’s contract to purchase 103 Boeing aircraft, valued at $36 billion, is particularly noteworthy in the aviation industry. This is expected to consist of 50 Boeing 787 Dreamliners, 35 Boeing 777Xs, and 18 Boeing 737 MAXs, significantly contributing to Korean Air’s long-haul route expansion and fuel efficiency improvement. In the global aircraft market, where Boeing and Airbus dominate, Korean Air’s purchase is analyzed to play a decisive role in expanding Boeing’s market share in the Asia-Pacific region. Additionally, the ‘Buy America Exhibition’ to be held annually in Seoul is expected to serve as a platform systematically supporting Korean companies’ entry into the US market.

The most notable trade regulation easing measure is the removal of the import limit on 50,000 US-made cars. This measure is expected to significantly promote the entry of US automakers like Tesla, Ford, and General Motors (GM) into the Korean market. Particularly for Tesla, there is a high possibility of emerging as a strong competitor to Hyundai and Kia in the Korean electric vehicle market. Considering Korea’s annual domestic car market size of about 1.5 million units, the removal of the 50,000-unit limit is expected to have a substantial market-opening effect. The easing of regulations in the agricultural and biotech sectors is analyzed to benefit both US agricultural companies and Korean consumers. As access to the Korean market improves for major US agricultural corporations like Cargill and Archer Daniels Midland (ADM), Korean consumers will be able to purchase a wider variety of agricultural products at lower prices.

The easing of digital service and data transfer regulations is expected to accelerate the integration of the digital economies of the US and Korea. The operation of data centers and provision of cloud services by US big tech companies like Google, Amazon, and Microsoft in Korea will become smoother, while conversely, the entry of Korean IT companies like Naver, Kakao, and Samsung SDS into the US market will be promoted. As the global cloud service market is projected to grow from $563 billion in 2024 to $1.25 trillion by 2030, data liberalization between the US and Korea will provide new growth opportunities for companies in both countries. Additionally, cooperation in strengthening labor rights and environmental standards aligns with the trend of ESG (Environmental, Social, and Governance) management becoming a global standard, contributing to the enhancement of Korean companies’ sustainable management capabilities.

The strengthening of intellectual property rights protection is analyzed to have a positive impact particularly on Korea’s content industry and advanced technology companies. As the system to block illegal copying and distribution of Korean Wave content, represented by K-pop and K-dramas, in the US is strengthened, the profitability of Korean entertainment companies like CJ ENM, SM Entertainment, and HYBE is expected to improve. Additionally, the core technologies of Korean tech companies like Samsung Electronics and LG Electronics will be more strongly protected in the US, leading to positive effects on expanding R&D investment and promoting technological innovation. With the global intellectual property market size reaching $180 billion annually, the strengthening of intellectual property protection between the US and Korea is evaluated to provide an important foundation for the development of the innovation ecosystem in both countries.

This US-Korea joint fact sheet should be interpreted not just as economic cooperation but in the context of the massive changes in global value chain restructuring and technological hegemony competition. The $350 billion investment plan and comprehensive trade barrier easing are likely to increase Korea’s economic dependence on the US while accelerating economic decoupling from China. In particular, the expansion of cooperation in the semiconductor and nuclear sectors is an area where the US’s strategy to contain China and Korea’s interest in securing technological security align. For this cooperation to lead to actual results, continuous policy support from both governments and active investment and technology development by private companies will be essential.

This analysis is intended for general informational purposes and does not constitute investment advice or endorsement of specific policies. All investment and business decisions should be made cautiously based on individual circumstances and expert advice.