A senior South Korean official announced Monday that South Korea and the United States had agreed to establish a non-binding memorandum of understanding (MOU) to outline the operation and structure of a $350 billion investment fund tied to their July trade deal.
The agreement, reached last month, saw Seoul pledge the investments in exchange for lower U.S. tariffs. However, disputes soon emerged over the interpretation of key details, including profit-sharing arrangements.
Presidential policy adviser Kim Yong-beom, visiting Washington for the summit between U.S. President Donald Trump and South Korean President Lee Jae Myung, said both sides are making progress toward a broad framework. Kim also held a two-hour meeting with U.S. Commerce Secretary Howard Lutnick to discuss the matter.
According to Kim, Washington hopes to finalize an MOU soon to ensure smoother oversight of the investment plan. The financial package will target strategic industries, including critical minerals, semiconductors, batteries, pharmaceuticals, artificial intelligence, and quantum computing. Additionally, up to $150 billion has been allocated for shipbuilding.
Seoul plans to set up a task force, led by the finance ministry and supported by state-run banks, to develop detailed implementation measures.
South Korean officials rejected earlier comments from Lutnick suggesting the U.S. would claim 90% of profits, clarifying that equity investments would be limited, while loans and guarantees would make up most of the package.
In July, Trump said South Korea would invest in projects “owned and controlled by the United States” and personally selected by him. Seoul has since insisted on adding safeguards to reduce financing risks, such as U.S. commitments to purchase project outputs and ensure investments remain commercially viable.
