South Korea's industry minister said on Monday that the country managed to avoid the worst-case scenario by clinching a U.S. tariff deal, but concerns remained over how the profitability of exporters would be affected by a 15% tariff rate.

South Korea's industry minister announced a deal with the U.S. to avoid heavy tariffs, but concerns persist about a 15% tariff affecting exporters' profitability. A $350 billion investment package focused on semiconductors and shipbuilding was also negotiated.

South Korea's exports likely climbed in July for a second straight month on robust chip sales and frontloading ahead of a U.S. tariff deadline, a Reuters poll showed on Wednesday.

South Korea has avoided a worst-case scenario by securing a deal on U.S. tariffs, yet worries linger over the effects of a 15% tariff rate on exporters' profitability. The deal includes a $350 billion investment package in strategic industries.