South Korea approves bipartisan framework for Korea-U.S. $350 billion strategic investment program

South Korea’s National Assembly approved, on December 12, a bipartisan bill setting up a framework for a major Korea–U.S. strategic investment program. The so-called US Investment Special Law would create a Korea–U.S. Strategic Investment Corporation to oversee up to about $350 billion in targeted investments between the two allies, signaling a closer, more coordinated approach to technology, critical industries and sensitive supply chains shared with the United States.

The proposed corporation would be fully funded by the government, with 2 trillion won set as its capital. A Korea–U.S. Strategic Investment Fund would also be established. Funding would come from government contributions, assets entrusted under pre-approved arrangements, and proceeds from Korea–U.S. strategic investment bonds, all aimed at providing a stable, policy-driven vehicle for large cross-border investments.

Governance is designed to balance risk and accountability. A project management committee under the Ministry of Trade, Industry and Energy would screen candidates for commercial viability, while a separate management committee under the Ministry of Economy and Finance would make the final decision. Once a decision is taken, the government would report it to the relevant parliamentary committee; investments lacking proven commercial viability would require prior approval from the committee before proceeding.

Analysts say the legislation could blunt the likelihood of new U.S. tariff actions against Korea. President Donald Trump had warned in January that, if Congress delayed the special law, tariffs on Korea could be raised from 15% to 25%, illustrating how this bill ties into broader U.S.–Korea trade and security economics.

Separately, South Korea advanced agricultural measures. An amendment to the law fostering successor farmers and youth farmers would allow national and local governments to fund operating and facility costs for successor farming groups, and would authorize donations from individuals, corporations or other entities to these groups. Another amendment expands the Korea 4-H activities program to cover not only youths but also children and young farmers.

In animal health policy, the amendment to the Animal Epidemic Prevention Act would reclassify lumpy skin disease from Category 1 to Category 2, and define “high-risk animal pathogens” and “livestock waste disposal business.” The bill also allows, in certain cases, a fine of up to 100 million won to substitute for quarantine orders if enforcing them would pose a significant public interest drawback.

However, the two regional consolidation bills—Chungnam–Daejeon and Gyeongbuk–Daegu—were not brought to a final vote. With local elections on June 3, observers say consolidation efforts are unlikely to advance this year. The National Assembly is scheduled to reconvene for further sessions on March 19 and 31, and negotiators from the ruling party and the opposition say they will push for agreement, though prospects remain uncertain.

The People Power Party’s Song Eon-seok pressed for immediate passage of the Gyeongbuk–Daegu bill and floated a “one-shot” approach to four more regional special laws covering Gangwon, Jeonbuk, Busan and Jeju. The opposition Democratic Party contends that progress on the Chungnam–Daejeon integration must come first before broader expansion.