Understanding the $350 Billion MOU Putting Seoul Under Pressure
The deal may not only help Korea avoid higher tariffs, but also lower the cost of capital for strategic investments in the United States.
The deal may not only help Korea avoid higher tariffs, but also lower the cost of capital for strategic investments in the United States.
From alliance recalibration to the “Korea Discount,” KEI experts analyze the critical issues shaping U.S.–South Korea relations in 2026.
“China for economy, U.S. for security” is no longer tenable; time will tell just how this new Korea-China relationship will take shape.
Investment commitments, tariff deals, and bilateral MOUs may now have to be completed with the caveat in mind that anything can change at a moment’s notice.
Seoul signaled commitment to a regional policy of pragmatic diplomacy, economic security, and broader regional stabilization.
The foundation of AI, including advanced chips, memory, sensors, and compute capacity, is where the U.S. and Korean supply chains are the most intertwined.
While Korea’s export growth in 2025 slowed due to protectionist trade policies, real GDP growth was expected to pick up in 2026.
2025 was always going to be significant because it was the fiftieth anniversary of the two countries establishing diplomatic relations.
Korea’s cosmetics industry has moved beyond trend-driven consumption and matured into a key export pillar.
Korea’s cosmetics industry has moved beyond trend-driven consumption and matured into a key export pillar.