Seoul, July 31 (IANS) South Korean companies could announce new investment plans in the United States as a follow-up to the tariff deal between Seoul and Washington, experts said on Thursday, with the anticipation for such new commitments growing ahead of an envisioned summit between the leaders of the two countries.

While no specific details have been confirmed, potential announcements would align with the deal that lowers tariffs on South Korean exports to the United States to 15 percent, down from the originally planned 25 percent, in exchange for a US$350 billion investment package pledged by Seoul.

U.S. President Donald Trump has said he will hold a summit with South Korean President Lee Jae Myung at the White House in two weeks, during which the leaders would likely discuss implementation and follow-up steps, reports Yonhap news agency.

Lee said South Korea’s investment pledge under the agreement would support bilateral cooperation in key economic areas. Of the total, $150 billion will be dedicated to helping revitalise the U.S. shipbuilding industry.

Yoon Sang-ha, head of the international macroeconomics team at the Korea Institute for International Economic Policy (KIEP), said the presence of top conglomerate leaders in Washington during the trade negotiations strongly suggests that some form of a coordinated investment package may be announced at the proposed summit.

“Large business group leaders often accompany summits like this, and many of them have flown to the U.S. to back the negotiations,” Yoon said. “It is likely they will bundle together their existing plans with new strategies to address the evolving global trade environment and unveil them in some package format.”

In terms of the overall size of the commitment, Yoon said he believes Seoul “handled it fairly well,” especially considering Japan’s $550 billion and the European Union’s $600 billion pledges.

South Korea’s Hanwha Group, which acquired Philly Shipyard in Philadelphia last year, is expected to play a key role in a U.S. shipbuilding revitalization initiative backed by both governments.

A spokesperson for Hanwha Ocean Co. said that while the company does not yet have an official position on the trade deal, it plans to expand or upgrade facilities at Philly Shipyard have previously been discussed at the group level.

“In that sense, we believe this trade agreement could have a positive impact,” the spokesperson said. “Hanwha Philly Shipyard has already signed a liquefied natural gas (LNG) carrier construction contract, and we expect such projects to move forward more actively.”

Hyundai Motor Group has already pledged to invest $21 billion in the U.S. by 2028, largely focused on mobility technologies.

Industry watchers speculate the group could announce additional investments at the upcoming summit to align with the broader economic vision outlined in the new deal.

—IANS

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