South Korea and the United States have finalized the draft of an expanded trade agreement, detailing new terms on automobiles, pharmaceuticals, defense cooperation, and South Korea’s nuclear-powered submarine program. According to a joint statement released by both presidential offices, the agreement reduces tariffs on South Korean car exports to the US from 25% to 15%, aligning them with Japanese competitors. Similar tariff reductions apply to pharmaceutical exports. In return, South Korea will invest $200 billion strategically in the US, capped at $20 billion annually, a reduction from earlier proposals to avoid currency risks. The deal also reaffirms Washington’s support for Seoul’s nuclear submarine initiative and the broader US-South Korea security alliance, including commitments to extended deterrence and denuclearization of the Korean Peninsula. Analysts believe the agreement will ease trade uncertainties that arose from former President Donald Trump’s tariff and investment demands. Both sides emphasized mutual trust and stability in implementing the accord.