A parliamentary committee in South Korea agreed on the final wording of a special bill on Monday, paving the way for a plenary vote this week to enable $350 billion of U.S. investments under a bilateral trade deal between the countries.
The special committee, comprising lawmakers from the ruling Democratic Party and the opposition People Power Party, approved the bill unanimously during a livestreamed general meeting.
The bill is expected to be put to a full National Assembly vote on March 12, as the US ally responds to pressure from Washington over perceived delays in enacting the deal.
The “Special Act on Investment in the US” will set up an investment vehicle, as well as a risk management committee to implement last year’s agreement for South Korea to invest in sectors such as shipbuilding and chips in return for lower U.S. tariffs.
The Chosun Daily reported that, to enhance efficiency, the South Korean government will report investments in advance rather than require National Assembly approval for each case.
Investment information will be disclosed by default, except for matters related to national security or corporate trade secrets.
Deal With Trump
U.S. President Donald Trump threatened in January to hike tariffs on imports from South Korea, accusing the country’s parliament of delays in enacting the trade deal.
Top South Korean officials have said the U.S.-South Korea trade deal remains valid despite a U.S. Supreme Court decision in February that struck down a large swath of Trump’s tariffs.
Officials in Seoul have, however, voiced concerns about the impact of U.S. investments on an already weak won currency and said that projects would be based on consideration of commercial feasibility and foreign exchange market conditions.
Last year on November 14, South Korea and the US signed a memorandum of understanding on strategic investment. The South Korean government agreed to invest $20 billion in advanced industries in the U.S. and lead $15 billion in shipbuilding cooperation investments by domestic companies reported Chosun Daily.
(With inputs from Reuters)
