South Korea's National Assembly Approves $350 Billion Investment Plan in the United States

South Korea’s National Assembly passed a special law on Thursday to pave the way for the country’s commitment of $350 billion in strategic industry investments in the United States, based on a trade agreement reached last year.

The law aims to implement the trade deal signed in November last year, under which South Korea pledged to invest $200 billion in U.S. strategic industries and $150 billion in shipbuilding-related sectors in exchange for more favorable tariff treatment.

The bill was approved in a bipartisan vote during the full session of the National Assembly on Thursday.

The law will take effect in about three months and will serve as the legal basis for establishing a state-supported investment company and strategic investment fund, with a registered capital of 20 trillion won ($14 billion).

The bill designates shipbuilding, semiconductors, pharmaceuticals, critical minerals, energy, artificial intelligence, and quantum computing as priority investment areas, with other sectors to be added by presidential decree.

Although the U.S. Supreme Court ruled in February to overturn most of the tariffs imposed by the Trump administration, South Korean officials stated that the trade agreement remains valid.

South Korea has been included in the U.S. “Section 301” investigation into excess industrial capacity, with the Office of the U.S. Trade Representative indicating that this could lead to new tariffs on major trading partners.

Industry Minister Kim Jung-hoon told a congressional committee on Thursday that the U.S. investigation is within South Korea’s expected scope.

Trade Envoy Luh Han-kyu revealed to the media that the U.S. appears to plan to shorten the investigation period to four or five months, which could mean that the U.S. might adjust tariff levels back to pre-judgment levels by mid-July.