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Economic and Trade Relations

The United States and the Republic of Korea share a partnership rooted in shared values, trust, and mutual prosperity. From innovation in technology to global trade and investment, this alliance continues to strengthen both nations’ economies—and their friendship—year after year.

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Building Prosperity Through Partnership

The economic alliance between the United States and South Korea is one of the most dynamic in the world. Established in the aftermath of the Korean War, it has evolved from post-war aid to a strategic, high-tech, and innovation-driven partnership that fuels growth across both nations.

 

Today, South Korea stands as America’s 6th-largest trading partner, while the United States is South Korea’s 2nd-largest. Their collaboration spans across industries like semiconductors, automobiles, clean energy, and entertainment, creating jobs, driving innovation, and enhancing global stability.

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Trade and Investment Snapshot (2025)

  • 💰 $173 billion in total goods trade between the U.S. and South Korea (U.S. Census Bureau, 2024).

  • 🇺🇸 U.S. exports to South Korea: $73.3 billion (machinery, vehicles, agricultural products, aircraft, and energy).

  • 🇰🇷 Korean exports to the U.S.: $99.7 billion (electronics, steel, cars, ships, and semiconductors).

  • 🏢 Over 60,000 American jobs are supported by Korean investment in the U.S., and more than 250,000 Korean jobs are linked to exports to the U.S.

  • 🌿 The U.S. and Korea have pledged to triple clean energy investment by 2030, emphasizing shared goals for sustainability and carbon neutrality.

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KORUS FTA: A Decade of Growth

The KORUS Free Trade Agreement (KORUS FTA), enacted in 2012, marked a turning point in U.S.–Korea economic relations. It eliminated tariffs on nearly 95% of consumer and industrial products, boosted trade by over 70%, and opened new opportunities for small businesses and entrepreneurs on both sides of the Pacific.

Since the FTA:

  • Korean companies such as Hyundai, Kia, and Samsung have expanded manufacturing and research operations in the U.S.

  • American brands such as Tesla, Boeing, and Apple have gained stronger access to Korean markets.

  • The partnership has encouraged bilateral investment exceeding $70 billion in sectors such as electric vehicles, chips, and AI.

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Innovation, Technology, and Future Cooperation

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Both nations lead in technology and innovation, and together, they form a critical alliance in semiconductors, artificial intelligence, and cybersecurity.

In 2023, the two governments launched the U.S.–ROK Next Generation Critical and Emerging Technologies Dialogue, a joint effort to:

  • Strengthen semiconductor supply chains.

  • Expand cooperation in biotechnology, quantum computing, and green energy.

  • Promote cybersecurity standards and ethical AI development.

 

These efforts ensure that the U.S.–Korea partnership remains future-focused and resilient in an era of rapid global change.

Why Economic Cooperation Matters

Economic relations are not only about trade—they are about mutual trust and peacebuilding. By strengthening economic interdependence, both nations help secure:

  • Greater regional stability in East Asia.

  • Peaceful collaboration across cultural, scientific, and educational fields.

  • Opportunities for the next generation to benefit from innovation and shared prosperity.

The alliance between the United States and South Korea proves that peace and prosperity thrive when nations choose partnership over distance.

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