South Korea Approves $350B Investment in U.S.

The National Assembly of South Korea approved a special bill on Thursday, enabling Seoul's $350 billion investment commitments in strategic U.S. industries as part of a trade deal signed last November. The legislation received bipartisan support from both the ruling Democratic Party (DP) and the main opposition People Power Party (PPP).

The bill establishes a legal framework for investing $200 billion in sectors including semiconductors, pharmaceuticals, critical minerals, energy, artificial intelligence, and quantum computing. An additional $150 billion is allocated for shipbuilding-related cooperation. These investments were agreed upon in exchange for more favorable tariff terms from Washington.

The legislation creates a state-backed investment corporation with 2 trillion won ($1.4 billion) in capital to manage these funds. The bill mandates that U.S. investments must meet the principle of 'commercial feasibility,' ensuring they generate sufficient cash flow to cover principal and interest over their lifespan. Exceptions may be granted for national security or supply chain stability reasons, subject to approval from relevant parliamentary committees.

President Lee Jae Myung announced plans to proceed with follow-up measures for implementing the legislation without delay. He emphasized that these investments will contribute not only to economic development but also to supply chain stability and national security interests. The bill's passage follows months of discussions between the DP and PPP, who set up a special committee to fast-track the legislation after U.S. President Donald Trump threatened to raise tariffs on Korean goods due to delays in Seoul's legislative process.

The new state-run corporation will have a workforce of 50 employees, with three board members required to have at least 10 years of experience in finance or strategic industries to prevent crony appointments. The legislation is set to come into force after approximately three months.