South Korean lawmakers have approved legislation paving the way for a new, state-controlled investment corporation to oversee a planned $350 billion investment in the United States. The move is intended to address trade concerns and ensure structured deployment of Korean investment in U.S.-based projects.
The special bill, passed following a bipartisan consensus in parliament, will establish the Korea-U.S. Strategic Investment Corporation as the central entity managing Seoul’s large-scale financial commitment.
This legislative action follows a memorandum of understanding signed about three months earlier between South Korea and the United States, which covered investment and tariff topics. The law’s passage also came roughly six weeks after President Donald Trump warned of potential tariff hikes—from 15% to 25% on Korean exports to the U.S.—citing delays in Korea’s legislative process.
Under the approved plan, South Korea intends to allocate $150 billion to the shipbuilding sector and $200 billion to strategic projects in the U.S., with annual investments capped at $20 billion. The new corporation will be funded initially with KRW 2 trillion from government contributions, managed assets, and proceeds from strategic investment bonds.
Government representatives have emphasized that this new structure is designed to provide greater oversight and enhance transparency in managing overseas investments of this scale.
Last month, the U.S. Supreme Court invalidated significant portions of Trump’s earlier tariffs, leading the White House to introduce new 10% duties under Section 122. Minister Kim Jung-kwan stated earlier this year that while the legal challenges added uncertainty for Korean exports, the primary benefits of the tariff agreements with the U.S. would be maintained.
The legislation was passed as the U.S. initiated new Section 301 inquiries targeting 16 trading partners, including South Korea. These investigations could give the White House further authority to implement tariffs where unfair trade is determined.
