South Korean Parliament Passes $350bn Investment Bill to Support US Trade Deal
South Korea’s parliament has approved a $350 billion investment bill aimed at strengthening economic cooperation with the United States and supporting a previously negotiated tariff agreement between the two nations.
The deal, finalised in November, commits Seoul to a massive investment package that includes $150 billion for shipbuilding cooperation, with the remaining funds directed toward strategic industries such as semiconductors and other advanced technologies.
The legislation was passed shortly after Washington launched investigations into alleged unfair trade practices by several countries, including South Korea, a move that could pave the way for new tariffs.
Under the agreement reached last year, the US agreed to reduce tariffs on South Korean exports from 25 percent to 15 percent, a decision tied to the passage of the investment bill.
However, former US President Donald Trump warned in January that the tariff rate could be raised back to 25 percent, accusing the South Korean parliament of failing to uphold its part of the deal by delaying approval of the legislation. His warning accelerated efforts in Seoul to bring the bill to a vote.
Lawmakers overwhelmingly supported the measure, passing it 226 votes to eight, with backing from both the ruling Democratic Party of Korea and the main opposition People Power Party.
South Korean President Lee Jae Myung welcomed the decision, thanking legislators for approving the bill in the interest of the country’s economy and national security. He said the legislation establishes the legal and institutional framework needed to implement the bilateral tariff agreement.
Earlier on Thursday, Lee’s office said Seoul would also work to ensure the country is not placed at a disadvantage compared with other major economies following the US decision to examine trade practices.
The developments come after the Supreme Court of the United States ruled that Trump had exceeded his authority by imposing sweeping global tariffs under emergency economic powers. While the ruling invalidated those broad tariffs, sector-specific duties on steel, aluminium, and automobiles remain in place.
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