South Korea's National Assembly passed a special law to manage $350 billion in investments in the United States. The bipartisan vote resolved delays that prompted U.S. President Donald Trump to threaten higher tariffs. The legislation establishes a new corporation to oversee the projects.
South Korea's National Assembly passed a special law on March 12, 2026, during a plenary session to establish a framework for $350 billion in investment projects in the United States. Out of 242 participating lawmakers, 226 voted in favor, eight opposed, and eight abstained. The legislation provides administrative and financial support for economic cooperation between the two countries, including $150 billion for shipbuilding.
A key provision is the creation of the Korea-U.S. Strategic Investment Corporation to oversee the projects. The corporation will have paid-in capital of 2 trillion won ($1.36 billion), funded by government contributions, entrusted assets, and strategic investment bonds. It will employ 50 staff, and three board members must have at least 10 years of experience in finance or strategic industries to avoid cronyism. Investments must meet commercial rationality standards, requiring Assembly approval if not.
The bill, introduced by the Democratic Party of Korea (DPK) on November 26, 2025, follows a memorandum of understanding (MOU) signed about three months earlier on investments and tariffs. The MOU led to a reduction in U.S. tariffs on Korean goods from 25 percent to 15 percent. However, delays in legislation, including a filibuster, prompted U.S. President Donald Trump to threaten raising tariffs back to 25 percent in late January 2026. This led rival parties to form a special committee in February, which unanimously approved the bill on Monday.
Assembly Speaker Woo Won-shik stated, "Amid a very serious trade environment, the Assembly passed the law in mutual agreement between opposing parties." He added, "It is meaningful that we confirmed that no bipartisan disagreement or political disputes can be prioritized over national interest."
DPK floor leader Rep. Han Byung-do said, "We expect tariff risks and trade uncertainties to be significantly reduced." He noted, "The government will make thorough preparations so that investment projects in the U.S. can proceed without disruption."
Officials say the new system aims to provide a clearer structure for managing investments and improve transparency in large overseas projects.
