South Korea's National Assembly has agreed to finalise a bill to create a fund that will finance a pledged $350 billion in investments in the U.S. by March 9. A special committee will be formed on February 9 to draft the legislation on an expedited timetable. The move follows a warning from President Donald Trump that he might raise tariffs over delays; the fund is linked to securing a 15% tariff on Korean autos under the trade understanding.
South Korea to Finalise U.S. Investment Fund Bill by March 9 After Trump Tariff Warning
Shipping containers are seen at Pyeongtaek port in Pyeongtaek, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji
South Korea's National Assembly has agreed to finalise legislation to create a fund that will finance pledged investments in the United States by March 9, officials from the ruling and main opposition parties said on Wednesday.
Key Steps and Timeline
A special parliamentary committee will be established on February 9 with authority to draft the bill, and lawmakers aim to complete the bill by March 9. The move is part of a bilateral trade understanding under which Seoul pledged to mobilise $350 billion in investment in the United States.
Why It Matters
The legislative push comes after U.S. President Donald Trump warned last week he could raise tariffs on imports from South Korea, citing delays in enacting the trade agreement. South Korea's ruling Democratic Party introduced the bill in November to set up a special fund to finance the U.S. investment; in return, Korea expects a tariff on its automobiles to be set at 15%.
Political Context
Party floor leaders said the agreement to fast-track the bill reflects bipartisan urgency to resolve the dispute and avoid higher U.S. tariffs. The special committee will have the power to draft and move the legislation through the Assembly on the expedited timetable.
What’s next: Lawmakers must draft, debate and pass the bill before March 9 for the funding mechanism to be established under the terms discussed with U.S. counterparts.
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