South Korea moved forward with a strategic investment plan as the ruling Democratic Party introduced a bill to activate a major economic commitment with the United States. Lawmakers emphasized urgency because the legislation unlocks tariff reductions for Korean automobiles and parts, applied retroactively to November.
The bill, titled the Special Act on Managing Korea-US Strategic Investments, aims to reduce US tariffs from twenty-five percent to fifteen percent. Leaders framed the proposal as a necessary structure to support South Korea’s $350 billion US investment pledge and strengthen long-term cooperation. The government said the strategic investment roadmap requires fast approval to secure predictable conditions for exporters.
Officials from the Ministry of Trade, Industry and Energy notified US counterparts immediately after submitting the bill. Minister Kim Jung-kwan requested fast publication of the tariff change in the Federal Register to ensure retroactive application remains in effect. Senior officials stated that this move stabilizes business planning and signals confidence to Korean automakers operating in the United States.
Finance Minister Koo Yun-cheol stressed that the strategic investment plan represents a turning point for South Korea’s future economic growth. He said that deeper involvement in US industrial supply chains will strengthen national competitiveness and support leadership in advanced manufacturing.
The legislation outlines new investment tools, including a bilateral fund and a temporary joint corporation to oversee major project execution. It limits annual remittance to twenty billion dollars and encourages prioritizing Korean suppliers when feasible. Lawmakers also included safeguards designed to prevent unreasonable financial exposure and reinforce oversight.
However, debate intensified inside the National Assembly. Opposition lawmaker Kim Gunn said the bill exposes taxpayers to potential losses and lacks strong legal protections. He argued that vague legal terms could allow decisions that favor US interpretation and weaken Korea’s position. The opposition also demanded formal parliamentary ratification rather than a fast-tracked special law.
The ruling party responded by urging cooperation and flexibility. Leaders argued that rigid ratification could restrict negotiating space during future project phases and slow economic benefits already underway.
Experts remain divided. Some economists support rapid implementation to secure momentum and business certainty. Others argue that major public spending demands full legislative review and stronger accountability.
Lawmakers expect further negotiations as both sides attempt to balance urgency, national strategy, and long-term risk management.
