South Korea's National Assembly Passes Special Bill for $350 Billion Investment in the United States

South Korea’s National Assembly passed a special law on Thursday regarding a $350 billion investment commitment to the United States under a trade agreement between the two countries. The bill was approved about three months after the ruling party first proposed it.

The bill was passed in the plenary session of the National Assembly with support from the ruling Democratic Party and the main opposition People Power Party.

The law aims to implement South Korea’s investment plan in the U.S., including executing a series of memorandums of understanding and establishing a $350 billion “Strategic Investment Fund.”

These investments will include $150 billion for shipbuilding cooperation and $200 billion for projects in strategic sectors.

According to the bill, a new state-owned enterprise will be established to oversee the implementation of this investment plan, with a paid-in capital of 2 trillion won ($1.36 billion), fully funded by the South Korean government.

This enterprise will have 50 employees, and at least three members of its board must have at least 10 years of experience in finance or strategic industries to prevent favoritism.

Following threats from U.S. President Donald Trump, who warned that due to delays in legislative procedures needed to advance the trade agreement, the U.S. would raise tariffs on Korean goods from 15% to 25% starting January this year, the South Korean government has been seeking to expedite the bill’s passage.

After months of negotiations, the Democratic Party and the People’s Power Party established a special committee to accelerate the legislative process and reached an agreement earlier this week to push the bill through.