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President Lee Jae-myung speaks on the phone at the presidential office in Yongsan, Seoul. / Yonhap News

President Lee Jae-myung announced on July 31 that South Korea has reached a tariff agreement with the United States, calling it "a milestone that will reinforce industrial cooperation and further solidify the Korea-U.S. alliance."

In a Facebook post, Lee said, "This agreement aligns U.S. interests in revitalizing manufacturing with our goal of boosting Korean companies' competitiveness in the American market. Despite tight deadlines and challenging conditions, the government prioritized the national interest in negotiations and will continue to pursue pragmatic diplomacy centered on national benefit."

Lee explained that the $350 billion fund included in the agreement would serve as a foundation for strategic industrial cooperation between the two nations. "It will support Korean companies' expansion in sectors where we excel—shipbuilding, semiconductors, secondary batteries, biotechnology, and energy," he said. "Of this, $150 billion will be designated as a shipbuilding cooperation fund to back Korean firms entering the U.S. shipbuilding market."

He added, "By eliminating uncertainty in export conditions and ensuring that U.S. tariffs are set at levels equal to or lower than those of major competitors, we have created an environment where Korean companies can compete on equal or superior terms."