South Korea Approves Special Act for Korea-U.S. Strategic Investments Totaling $350 Billion
South Korea’s National Assembly approved the Special Act on managing Korea-U.S. strategic investments, known as the Daemi Investment Special Law, during its March extraordinary session on the 12th. The measure passed with bipartisan support.
The law follows a November agreement between Seoul and Washington to pursue up to $350 billion in strategic investments under a broader U.S.–Korea cooperative framework. It also comes about three and a half months after the main opposition and ruling party aligned to advance the bill.
At the heart of the legislation is the creation of the Korea-U.S. Strategic Investment Corporation, charged with implementing the investments outlined in the bilateral MOU. The corporation would be capitalized at 2 trillion won, fully funded by the government, with the timing and method of capitalization set by a presidential decree. Its president would serve a three-year term and must have at least 10 years of experience in finance or strategic industries.
The plan designates $150 billion for the shipbuilding sector and $200 billion for investments in areas that bolster both economic and national security interests for the two countries. The law also provides for a Korea-U.S. Strategic Investment Fund to channel these resources.
Funding for the fund would come from three sources: the corporation’s own contributions, assets entrusted to the fund with prior consent, and the issuance of Korea-U.S. Strategic Investment Bonds. The framework envisions how the investments would be managed and disbursed to advance the bilateral program.
The Democrats introduced the bill on November 26 of last year. At that time, Seoul and Washington agreed that U.S. tariff reductions on Korean autos and parts would apply retroactively to November 1 of that year, aligning the tariff changes with the legislative push.
Beyond Korea, the measure signals a deeper model of alliance-backed investment in strategic sectors, with potential implications for global supply chains, defense-related and high-tech industries, and cross-border capital flows. For U.S. readers, the arrangement reflects how Seoul and Washington are coordinating to shore up critical industries and reduce vulnerability in shared markets amid rising geopolitical competition. It may influence how policymakers, investors, and suppliers plan for collaboration and risk management across Asia-Pacific supply chains.