By Cynthia Kim, Yena Park and Youn Ah Moon

SEOUL (Reuters) -President Donald Trump’s trade pact with South Korea could deal a major blow to the won when cash starts flowing out of the country to cover investment commitments in the U.S., though the pact will likely be a boon for the Kospi.

In exchange for lower tariffs – duties on South Korean cars and auto parts are expected to fall to 15% from 25% – South Korean negotiators agreed on Wednesday to inject $350 billion in new investments into the U.S.

In an effort to avoid disruptions in the dollar-won market, the two countries agreed to split the fund into two components. A first part will be $200 billion in cash, paid in installments, which will be capped at $20 billion a year.

For a tech- and export-reliant economy like South Korea, t

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