Shares in South Korea’s auto and shipbuilding sectors rose after the trade deal was finalized

South Korean auto and shipbuilding stocks rose on Thursday after Seoul and Washington finalized trade deal announced back in July.

Hanwha Ocean jumped as much as 14.9%, while Samsung Heavy Industries rose 8.33% at its peak. Defense product manufacturer Firstec also rose by as much as 9.7%.

Automakers Hyundai and Kia posted gains of around 12% and 9%, respectively.

The deal, detailed after a meeting between President Lee Jae-myung and US President Donald Trump, includes lower US tariffs on South Korean goods in return for a pledge of $350 billion in investment from Seoul – a move that could alter trade and defense ties between the two allies.

Under the new terms, US tariffs on South Korean exports will drop to 15% from the earlier “tariff letter” rate of 25%. South Korea’s pledge to invest $350 billion reportedly includes $200 billion direct investment and $150 billion allocated to shipbuilding cooperation.

Investments of $200 billion will be capped at $20 billion a year, South Korea’s chief political adviser Kim Yong-bom said. reported as they say.

Trump also said in a Truth Social post that he approved South Korea to build a nuclear submarine at the “Philadelphia Shipyards”. It will be Seoul’s first nuclear powered submarine.

South Korean shipbuilder Hanwha has made a $5 billion investment in Philly Shipyards in August as part of Seoul’s earlier commitment to invest $150 billion.

“As President Trump and President Lee make shipbuilding a central foundation in the US-Korea alliance, Hanwha stands ready to support with our advanced shipbuilding scale,” Alex Wong, Hanwha’s chief strategy officer, said in a statement.

Yonhap of South Korea also said a fact sheet covering both the trade and security components of the Seoul-Washington deal would be released in the coming days.