S. Korea, US sign MOU on $350 bil. investment pledge under trade deal: ministry

President Lee Jae Myung, right, watches U.S. President Donald Trump signing a guest book at the Gyeongju National Museum in the southeastern city of Gyeongju on Oct. 29, in this photo provided by the presidential office. Yonhap

South Korea and the United States have signed a memorandum of understanding (MOU) on Seoul's $350 billion investment pledge made in return for the lowering of U.S. tariffs, the industry ministry said Friday.

The MOU was electronically signed by South Korean Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick, according to the Ministry of Trade, Industry and Resources.

On Oct. 29, the two sides reached an agreement on the details of Seoul's $350 billion investment pledge made in exchange for lower U.S. tariffs.

Under the final terms, the investment will consist of $200 billion in cash installments, with an annual cap set at $20 billion, and an additional $150 billion for bilateral shipbuilding cooperation.

The MOU on the envisioned investment stipulates that the two countries will select projects to be funded by Seoul's $200 billion package before U.S. President Donald Trump's term ends in January 2029, Kim said in a press briefing.

The $200 billion will be funneled into projects related to advanced industries outlined in a joint fact sheet released by both Seoul and Washington earlier in the day. Such sectors include energy, semiconductor, pharmaceuticals, critical minerals, artificial intelligence and quantum computing, among others.

Kim said the two countries will establish a Consultation Committee, headed by Korea's industry minister, and an Investment Committee, headed by the U.S. commerce secretary, that will look over a special purpose vehicle that will manage their joint projects.

The deal also stipulates that the U.S. should give priority to South Korean firms when selecting vendors or suppliers for such projects, according to Kim.