South Korea's National Assembly Passes Bill, $350 Billion U.S. Investment Officially Takes Effect

South Korea’s National Assembly approved special legislation on the 12th to provide legal basis for Seoul’s $350 billion investment plan promised to Washington, marking a significant step toward the tangible implementation of this major economic agreement aimed at securing U.S. tariff benefits.

According to Global Times on the 11th, amid the sudden escalation of Middle East tensions and sharp fluctuations in international oil prices and exchange rates, South Korea’s National Assembly is accelerating the implementation of a $350 billion investment arrangement with the U.S.

Under the bill, the South Korean government will establish a fully state-funded dedicated investment company responsible for coordinating the implementation of the above investment plan. This move comes amid rising trade pressure from Washington—according to CCTV News, the U.S. Supreme Court rejected tariffs imposed by the White House under the International Emergency Economic Powers Act. In response, the Office of the U.S. Trade Representative (USTR) quickly countered by launching a new round of “Section 301” investigations covering most major trading partners, focusing on the pharmaceutical and technology sectors.

The passage of this legislation is Seoul’s proactive response amid escalating trade friction with the U.S. Analysts believe that establishing an independent investment entity will help Seoul demonstrate its sincerity in fulfilling commitments to Washington and seek more favorable conditions in bilateral tariff negotiations. However, given that U.S. trade investigations are still ongoing, South Korea’s export prospects remain uncertain.

$350 Billion Investment Framework: Balancing Shipbuilding and Strategic Industries

According to the Korea-U.S. trade agreement reached in July 2025, Seoul committed to investing $350 billion in the U.S. in exchange for a 15% tariff rate. The special legislation passed will ensure the implementation of this commitment at the institutional level.

South Korea’s Joint News Agency reports that the newly established national investment company will be solely responsible for advancing the investment plan, with all funds provided by the government.

In terms of investment composition, the plan includes $150 billion for shipbuilding and $200 billion for strategic industries, with the latter to be implemented in phases, capped at $20 billion annually.

Trump’s Pressure Accelerates Legislation

The acceleration of this legislative process is closely related to Trump’s ongoing pressure on South Korea. As previously reported by Wallstreetcn, on Wednesday, the U.S. announced the launch of “Section 301” investigations against 16 trading partners, including South Korea.

In January this year, Trump posted on his Truth Social platform criticizing the South Korean National Assembly for failing to fulfill an agreement reached with the U.S., and threatened to raise tariffs on Korea from 15% to 25%. “South Korea’s National Assembly has not fulfilled its agreement with the U.S.,” Trump wrote in the post.

Against this backdrop, the U.S. Supreme Court last month overturned most of Trump’s tariffs, and Trump subsequently invoked Section 122 to reimpose a 10% tariff. South Korea’s Minister of Trade, Industry and Energy Kim Jung-kwan reportedly stated in February that, “Although the above ruling increases uncertainty for exports to the U.S., the overall export conditions established by the Korea-U.S. tariff agreement will remain basically unchanged.”

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