South Korea and the United States have reached an agreement on the details in their monthslong tariff negotiations.

Kim Yong-beom, the top office's director of national policy, told reporters in a briefing on Wednesday that the two sides had differed over how to structure South Korea's pledged 350-billion-dollar investment package—including 200 billion dollars in cash and 150 billion dollars in shipbuilding cooperation—but finalized the terms in Wednesday's talks.

The announcement follows a summit between President Lee Jae Myung and U.S. President Donald Trump, held earlier that day in Gyeongju, ahead of the Asia-Pacific Economic Cooperation(APEC) summit.

Kim said Seoul set an annual cap of 20 billion dollars on cash investment, allowing phased contributions tied to project progress to limit market impact.

He added that Korean firms will lead the so-called MASGA shipbuilding initiative, which will include state-backed financing.

Under the deal, tariffs on auto and auto parts will be cut from 25 percent to 15 percent, and pharmaceuticals and timber will receive "most-favored-nation" status.

Semiconductors will receive tariff treatment comparable to Taiwan's, and several other exports, such as aircraft parts and certain minerals, will enter the U.S. duty-free.