South Korea’s parliament on Thursday approved a bill enabling up to $350 billion in investments in the United States, fulfilling a key part of a trade agreement reached with Washington last year to avert steep tariffs proposed by Donald Trump.
The agreement, finalized in November, commits Seoul to a major investment package, including $150 billion dedicated to shipbuilding cooperation, with the remaining funds targeted at strategic sectors such as semiconductors and other high-technology industries.
Lawmakers passed the bill by 226 votes to eight, with support from both the ruling Democratic Party of Korea and the main opposition People Power Party.
The legislation follows renewed trade tensions after Washington on Wednesday launched investigations into alleged unfair trade practices by several countries, including South Korea—raising the possibility of additional tariffs.
Under the earlier agreement with Washington, tariffs on South Korean exports were reduced from 25 percent to 15 percent under Trump’s global tariff measures. However, Trump later warned that the rate could return to 25 percent, accusing the South Korean parliament of failing to approve the investment bill.
South Korean President Lee Jae Myung welcomed the passage of the legislation, thanking lawmakers for supporting the measure in the interest of the country’s economy and national security.
“With the passage of the special bill, the institutional and legal foundation has now been established to implement the South Korea–US tariff agreement,” Lee said.
Earlier in the day, the presidential office also said Seoul would work to ensure the country is not placed at a disadvantage compared with other major economies, following the announcement of the US trade probe.
The developments come after the Supreme Court of the United States ruled that Trump had exceeded his authority in imposing sweeping global tariffs under emergency economic powers. In response, the US administration introduced a new 10 percent tariff, with plans to raise it to 15 percent.
However, sector-specific tariffs on goods such as steel, aluminum, and automobiles remain in force despite the court’s ruling.
