S. Korea Clears Path for USD350B US Investment Pledge Implementation
The decree gives operational force to the Special Act for Korea-US Strategic Investment Management, which was passed by the National Assembly in March and is scheduled to come into effect on June 18, media reported, citing the Finance Ministry.
The sweeping investment package was forged between Seoul and Washington in October last year as part of a broader bilateral trade arrangement, under which South Korea pledged to channel capital into the US in exchange for reduced American tariffs. The plan allocates $150 billion toward shipbuilding cooperation and a further $200 billion across other strategic sectors.
Under the enforcement rules outlined by the Finance Ministry, a proposed US-bound project will be deemed commercially viable if the returns allocated to South Korea are sufficient to cover both principal and interest throughout the investment period. Interest calculations will be anchored to 20-year US Treasury yields, plus an additional spread negotiated between the two governments.
A special committee chaired by the trade minister will be tasked with reviewing and greenlighting individual projects. A newly established Korea-US Strategic Investment Corporation will oversee the portfolio, operating under a 20-year mandate and backed by an initial capital injection of 2 trillion won — approximately $1.3 billion.
The legislative push comes against a backdrop of tariff pressure: earlier this year, President Donald Trump warned that reciprocal tariffs on Korean exports could climb back to 25% from the current 15%, citing delays in Seoul's legislative proceedings needed to advance the trade framework.
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