South Korea passes law to form Korea–U.S. strategic investment corporation, mobilizing $350B in investments
South Korea’s National Assembly passed a flagship bill designed to steer follow-up actions from the Korea–U.S. trade engagement. The Special Act on the Operation and Management of Strategic Investments between the Republic of Korea and the United States was approved in the March session with 226 votes in favor, eight against, and eight abstentions out of 242 attending lawmakers.
The law outlines concrete steps to mobilize roughly $350 billion in U.S. investments, centered on establishing a Korea–U.S. Strategic Investment Corporation with government capital of 2 trillion won and creating a dedicated investment fund under the corporation. The framework envisions a large-scale push into American markets while anchoring the effort in a state-backed structure.
Funding for the fund would come from profits generated by Korea’s foreign exchange reserves, with contingencies to issue Korea–U.S. strategic investment bonds or to borrow from financial institutions if needed. The measure includes explicit risk-management mechanisms to govern decisions and safeguard public resources.
Operational oversight is designed to balance speed with accountability. A project-management board under the Ministry of Trade, Industry and Energy would assess the commercial viability of potential investments, while a management committee under the Ministry of Economy and Finance would render the final investment decisions. The process emphasizes a reporting regime that replaces prior formal approval to accelerate action while preserving parliamentary accountability.
Critics from smaller parties raised concerns about the bill’s pace and the fund’s governance structure. They argued the plan could become a channel for U.S. investment pressure and might bypass public funds oversight, pointing to the involvement of public resources such as the National Pension Service.
The timing coincides with U.S. moves to pressure tariff-wise through a Section 301 investigation covering 16 economies, including Korea. The inquiry underscores the broader context in which Seoul seeks to reassure markets and protect supply chains through a robust, accelerated framework for industrial and strategic investment.
National Assembly Speaker Woo Won-sik welcomed the passage as a bipartisan response to external economic challenges. He said the outcome demonstrates that, when national interests are at stake, cooperation across party lines can supersede political disagreements and help fortify bilateral industrial cooperation and trade risk management.
For U.S. readers, the legislation signals Seoul’s commitment to a formal, scale-driven investment program linked to the alliance’s economic security objectives. The framework could influence cross-border supply chains, critical-tech investment, and policy considerations around tariffs, export controls, and shared industrial strategy. The move suggests Korea’s readiness to mobilize substantial capital in partnership with the United States to advance joint strategic interests.