South Korea Approves $350 Billion Investment Law Amid U.S. Trade Investigations
South Korea's parliament has approved a law to execute a $350 billion investment commitment in the U.S., originally pledged last year. This decision aims to mitigate the impact of potential tariffs from the Trump administration amid ongoing trade investigations targeting manufacturing practices in South Korea, Japan, and China. The law establishes a public corporation to oversee U.S. investments, which include $200 billion in semiconductor and high-tech industries and $150 billion in shipbuilding. The legislation was passed with a vote of 226 to 8, despite concerns from some lawmakers regarding its implications for South Korean interests.
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On February 2, 2026, South Korea's parliament approved a law facilitating a $350 billion investment in the U.S., responding to the Trump administration’s protectionist policies and trade investigations. The investment includes $200 billion in semiconductors and high-tech sectors and $150 billion in shipbuilding.
The law mandates the establishment of a public corporation to manage these investments collaboratively with U.S. trade authorities. The passage of the bill follows significant pressure from the government amid concerns about South Korea's economic vulnerabilities and potential tariff increases, with a vote of 226 to 8. The agreement caps annual investments at $20 billion to safeguard foreign reserves.
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