South Korean airline Korean Air has announced a $36 billion deal with US aviation manufacturer Boeing, just hours after a meeting in Washington between US President Donald Trump and South Korean President Lee Jae Myung.
While the Trump administration had initially imposed a 25% import tariff on South Korea, that percentage was renegotiated to 15% in July 2025. On Monday, 25 August, the presidents of the two countries, top business executives, and some government representatives, including US Commerce Secretary Howard Lutnick and South Korea’s trade minister Kim Jung-kwan, met to discuss those tariffs.
President Donald Trump and South Korean President Lee Jae Myung expressed optimism for close cooperation on North Korea, collective security and shipbuilding. Trump spoke with South Korea's leader in the Oval Office https://t.co/012nRpuTjh pic.twitter.com/fJTDjthmty
— Bloomberg TV (@BloombergTV) August 25, 2025
Following the meeting, a series of trade deals between the two countries was agreed upon. The most important one is undoubtedly Korean Air’s order from Boeing, amounting to a total of $36 billion and 103 aircraft. More specifically, the airline ordered 50 Boeing 737-10 passenger planes, 45 long-range jets, and eight 777-8 Freighter cargo planes. According to news agency Reuters, South Korea’s industry ministry already announced in March 2025 to be finalising a $32.7 billion deal for new Boeing and GE engines. However, it seems that the deal stands apart from the new order.
According to Korean Air CEO Cho Won-tae, the new order will help the airline with its expansion towards the US, Latin America, and South America. However, the new planes will primarily (80%) serve to replace existing airplanes in the fleet. The Boeing aircraft should help Korean Air to stay competitive after its merger with Asiana Airlines in 2024.
“As Korean Air transitions to a larger unified carrier, we are committed to supporting the airline’s growth with one of the world’s most efficient fleets”, Stephanie Pope, president and CEO of Boeing Commercial Airplanes, told Reuters.
Billions worth of trade deals
Aside from the deal with Boeing, other trade agreements between the US and South Korea were announced on Monday, 25 August 2025, as well. For instance, a separate deal between Korean Air and engine maker GE Aerospace concerning the purchase and maintenance of engines adds up to $13.7 billion.
Moreover, the South Korean trade ministry announced a collaboration between Samsung’s shipbuilding arm and the Oregon-based Vigor Marine Group, supporting the maintenance operations for the US Navy. Hyundai said it would be raising its investment in the US from $21 billion to $26 billion, announcing plans to set up a new US facility. The new plan should produce some 30,000 robots a year.
Since the Trump administration announced its trade tariffs and went into negotiations with countries from across the globe, several nations have placed orders with Boeing. Thanks to orders from Japan (100 aircraft) and Indonesia’s flag carrier Garuda (50 aircraft), among others, Boeing’s sales were able to overtake those of its European rival Airbus.
