South Korea plans to invest $350 billion in strategic U.S. industries as part of a trade deal, focusing on shipbuilding, key minerals, batteries, pharmaceuticals, chips, and AI. State policy institutions will provide funding on a case-by-case basis, with details still being finalized. The investment is aimed at supporting commercially viable U.S.-based projects, not for U.S. profit-taking. South Korea plans to issue a record amount of bonds next year to fund spending in sectors like AI, semiconductors, research, and defense. Authorities will monitor foreign exchange markets and act to stabilize them if needed. The government will review extending dollar-won trading hours to be included in MSCI’s developed market benchmarks. South Korea expects economic recovery to accelerate next year, with a forecasted growth rate of 1.8%, driven by AI transformation to strengthen its role as a key tech exporter. The 2026 spending budget aims to boost the economy amidst challenges from U.S. tariffs and demographics.

Read more at Yahoo Finance: Exclusive-Top South Korea official says policy institutions to lead on $350 billion US fund, watching FX