South Korea Enacts Law for $350 Billion US Investment Commitment
The legislation, approved 226-8, allocates $200 billion to U.S. semiconductor and high-tech sectors and $150 billion to shipbuilding, capping annual investments at $20 billion to safeguard foreign reserves.
South Korea's National Assembly passed a special bill on March 12, 2026, to implement a $350 billion investment pledge in the United States, establishing a state-run corporation to oversee project selection and management with input from both countries' trade authorities.
The legislation, approved 226-8, allocates $200 billion to U.S. semiconductor and high-tech sectors and $150 billion to shipbuilding, capping annual investments at $20 billion to safeguard foreign reserves.
The pledge stems from a November 2025 trade agreement following an October summit between President Donald Trump and South Korean President Lee Jae Myung, reducing U.S. tariffs on South Korean goods from 25% to 15% in exchange. Trump had threatened in January 2026 to revert tariffs to 25% on autos and pharmaceuticals if delayed.
Opposition came from Progressive Party member Son Sol, who criticized the bill as turning South Korea into a "money machine" for Trump, lacking oversight for national interests.
The move addresses U.S. Section 301 investigations into South Korean manufacturing practices, amid broader trade tensions and economic vulnerabilities from export reliance and the Iran conflict. The corporation will be fully government-financed, marking one of the largest bilateral commitments.