South Korea’s pay-to-play deal with Trump anchors firms in a risky US economy



Analysis South Korea’s pay-to-play deal with Trump anchors firms in a risky US economy Signs of slowing growth and Trump’s politicization of Federal Reserve raise long-term risks for ROK firms John LeeAugust 28, 2025 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON ROK President Lee Jae-myung visits to Hanwha Ocean's Philly Shipyard, Aug. 26, 2025 \| Image: Hanwha Group South Korean firms pledged $150 billion in U.S. investments during President Lee Jae-myung’s Aug. 25 summit with U.S. President Donald Trump, securing access to U.S. markets but increasing their exposure to a slowing American economy. These pledges were the condition for Washington lowering tariffs on South Korean exports from 25% to 15%, part of a broader July 31 bargain that included $350 billion in investments and energy purchases. The arrangement departed from the terms of the Korea-U.S. Free Trade Agreement, which had been built on mutual liberalization rather than conditional market access. Under Trump’s reciprocal tariff framework, South Korea won © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01Why South Korea cannot rebalance growth without stronger regional clusters 02Samsung, SK Hynix rejection exposes South Korea’s chip-grid financing problem 03Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine 04Lee Jae Myung risks public trust as South Korea rewires its justice system 05South Korea turns to Central Asia as Iran war tests its energy resilience 06Houthi seizure of Mokha sharpens South Korea’s Hormuz deployment dilemma 07Japan’s stronger yen may cut Korea’s import bill while raising funding costs 08South Korea leans on Europe as Hormuz deployment choices grow narrower

Analysis

South Korea’s pay-to-play deal with Trump anchors firms in a risky US economy

Signs of slowing growth and Trump’s politicization of Federal Reserve raise long-term risks for ROK firms

John LeeAugust 28, 2025

South Korea’s pay-to-play deal with Trump anchors firms in a risky US economy

ROK President Lee Jae-myung visits to Hanwha Ocean's Philly Shipyard, Aug. 26, 2025 | Image: Hanwha Group

South Korean firms pledged $150 billion in U.S. investments during President Lee Jae-myung’s Aug. 25 summit with U.S. President Donald Trump, securing access to U.S. markets but increasing their exposure to a slowing American economy.

These pledges were the condition for Washington lowering tariffs on South Korean exports from 25% to 15%, part of a broader July 31 bargain that included $350 billion in investments and energy purchases.

The arrangement departed from the terms of the Korea-U.S. Free Trade Agreement, which had been built on mutual liberalization rather than conditional market access. Under Trump’s reciprocal tariff framework, South Korea won

South Korea’s pay-to-play deal with Trump anchors firms in a risky US economy

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John Lee