Seoul, March 12: South Korea’s National Assembly has unanimously passed the “Special Act on Investment in the US” during a plenary session. This legislation was introduced by the ruling party nearly three months ago.
Both the ruling Democratic Party (DP) and the main opposition People Power Party (PPP) supported the bill. It follows a trade and security agreement (MOU) signed between Seoul and Washington last November.
Shortly after the bill’s passage, President Lee Jae-myung announced plans to implement the law without delay. He stated on his social media account, “I will do my utmost to ensure that strategic investment not only aids the economic development of both South Korea and the US but also promotes supply chain stability and national security interests.”
Under this law, South Korea will invest $350 billion (approximately 517 trillion won) in the US, focusing on sectors such as semiconductors, shipbuilding, critical minerals, and other strategic industries.
A new government entity, the Korea-US Strategic Investment Corporation, will be established, with the government providing 2 trillion won (around $1.4 billion) in capital. A risk management committee will oversee investment projects and report significant decisions to the parliament.
The corporation will employ 50 staff members, and the board of directors must include three members with at least ten years of experience in finance or strategic industries to prevent cronyism.
The Trump administration had threatened to impose reciprocal tariffs on South Korea. By passing this bill, South Korea aims to strengthen trade relations with the US and mitigate tariff threats.
The special committee unanimously approved the bill on March 9, followed by the legislative and judiciary committee’s approval on March 11, leading to its passage in the plenary session on March 12. This bill is now law and is considered a significant step in Korea-US relations, expected to enhance investment and trade cooperation between the two nations.
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