South Korea passes special bill to implement its $350 billion U.S. investment pledge

South Korea’s parliament on Thursday passed a special bill to establish a state-run investment corporation to manage Seoul’s planned $350 billion investment into the U.S.

The new corporation will specialize in implementing the investment package, according to South Korean media outlet Yonhap, and will be fully financed by the government.

The passage of the legislation will mean that Seoul will have the legal framework it needs to carry out its investment commitment made to Washington in exchange for more favorable “reciprocal” tariff rates.

The investment comprises $150 billion toward shipbuilding and $200 billion for projects in strategic sectors that will be capped at $20 billion a year.

The move comes after U.S. President Donald Trump threatened in January to raise tariffs on Asia’s fourth largest economy to 25%, up from the 15% agreed under the trade deal between Seoul and Washington in July 2025.

“South Korea’s Legislature is not living up to its Deal with the United States,” Trump had said in a Truth Social post.

The U.S. Supreme Court last month struck down a large chunk of Trump’s tariffs, prompting him to levy fresh duties at 10% under Section 122.

“Although the ruling increased uncertainties surrounding exports to the US, the overall export conditions secured through the Korea-US tariff agreement will largely remain intact,” Industry Minister Kim Jung-kwan reportedly said in February.

The South Korean parliament passed the special bill close on the heels of Washington’s latest trade salvo in the form of Section 301 investigations into 16 trading partners including South Korea, which could pave the way for Trump to replace his tariffs that were struck down.

Section 301 permits the U.S. to impose tariffs on imported goods from economies found to have engaged in unfair trade practices.