South Korea’s parliament passed a law authorizing Seoul’s planned $350 billion pledge toward U.S. investment, an agreement made in November 2025, in an effort to avoid the Trump administration’s sweeping tariffs.
According to a CNBC report, South Korean media outlet Yonhap reported that a new fully government-financed and state-run investment corporation will specialize in implementing the investment bill.
Seoul’s pledge, an agreement following tense negotiations, includes $150 billion for shipbuilding and $200 billion for projects in strategic sectors selected based on input from South Korean and U.S. trade officials. The $200 billion will be spread over a decade, with $20 billion being invested annually.
The law’s passage came hours after the Trump administration launched Section 301 trade investigations into foreign countries' manufacturing, an effort meant to apply pressure on trade partners. The probe could lead to new import tariffs if U.S. officials uncover unfair practices.
Countries such as China, Japan, and South Korea are among those being investigated.
Section 301 of the Trade Act of 1974 permits the U.S. to impose duties on imported goods from foreign trade partners found to be engaged in unfair trade practices.
The bill’s passage provides South Korea with the legal framework needed to fulfill its investment commitment to the U.S. in exchange for less burdensome “reciprocal” import duties.
Under the agreement, the U.S. promised to lower its reciprocal tariffs from 25% to 15%.
In February, the U.S. Supreme Court ruled the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) illegal, prompting the administration to circumvent that ruling by imposing a new 10% tariff under Section 122 of the Trade Act of 1974.
“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 stated following the ruling.
