South Korea Passes Bill to Implement $350 Billion U.S. Investment

South Korea’s National Assembly has passed a special bill establishing the legal framework needed to implement Seoul’s $350 billion investment pledge in the United States. The legislation enables the government to move forward with investment commitments that were agreed with Washington as part of a broader trade arrangement.

The investment package forms a central element of a bilateral agreement reached last year between the two countries. Under the deal, South Korea pledged to invest $350 billion in key U.S. industries, including semiconductors, high‑tech sectors and shipbuilding. In return, the United States agreed to reduce its “reciprocal” tariff rate on South Korean goods from 25% to 15%.

The newly approved law provides for the creation of a public investment vehicle responsible for managing the funds and selecting projects. Authorities from both countries are expected to coordinate on project approvals, while the annual investment flow is expected to be capped at roughly $20 billion in order to protect South Korea’s foreign‑exchange reserves.

Despite its passage, the legislation sparked political debate in Seoul. Some opposition lawmakers warned about the economic risks of committing large-scale investments abroad amid ongoing trade tensions and potential tariff investigations by the United States. The government, however, argues that securing lower tariffs is vital for South Korea’s export‑dependent economy.