South Korea’s parliament on Thursday approved a special bill that will establish a state-run investment corporation responsible for managing Seoul’s planned $350 billion investment in the United States.
According to South Korean media outlet Yonhap, the new corporation will focus on implementing the large investment package and will be fully funded by the government.
With the legislation now passed, Seoul will have the legal framework required to carry out the investment commitment it made to Washington in return for more favorable “reciprocal” tariff rates.
The total investment includes $150 billion for shipbuilding and $200 billion for projects in strategic sectors, with spending capped at $20 billion per year.
The move follows a warning from U.S. President Donald Trump in January, when he threatened to increase tariffs on Asia’s fourth-largest economy to 25%, up from the 15% rate agreed under the trade deal between Seoul and Washington in July 2025.
“South Korea’s Legislature is not living up to its Deal with the United States,” Trump had said in a Truth Social post.
Last month, the U.S. Supreme Court struck down a significant portion of Trump’s tariffs, prompting him to introduce new duties of 10% under Section 122.
“Although the ruling increased uncertainties surrounding exports to the US, the overall export conditions secured through the Korea-US tariff agreement will largely remain intact,” Industry Minister Kim Jung-kwan reportedly said in February.
The South Korean parliament passed the special bill shortly after Washington launched its latest trade action — Section 301 investigations into 16 trading partners, including South Korea. The probe could allow Trump to replace the tariffs that were previously struck down.
Section 301 allows the United States to impose tariffs on imports from countries that are determined to have engaged in unfair trade practices.
