South Korea's National Assembly approves bipartisan law creating Korea-U.S. strategic investment fund

South Korea’s National Assembly approved the Special Act on Korea-U.S. Investment on June 12 with bipartisan support, designed to implement commitments made during the U.S.–Korea tariff talks. The law lays the groundwork for investments in the United States totaling up to about $350 billion, a figure cited in relation to the post‑negotiation framework.

The legislation creates the Korea-U.S. Strategic Investment Corporation, funded with 2 trillion won from the government, to form, manage, and operate the Korea-U.S. Strategic Investment Fund. The aim is to coordinate and oversee major investments linked to the United States.

Investment decisions under the law follow a two‑tier governance structure. The Project Management Committee, chaired by the Minister of Trade, Industry and Energy, will evaluate each project’s commercial viability, strategic value, and legal issues. A second, Operational Committee, chaired by the Minister of Economy and Finance, will make the final investment decision.

The law also specifies disclosure rules. Investment information would generally be made public, with exceptions for matters related to national security or other secrets.

A notable feature is an exception for “commercial rationality.” Article 3, Paragraph 3 allows investments even if they lack immediate commercial profitability if there are unavoidable reasons related to national security or supply-chain stability, provided there is prior approval from the relevant National Assembly standing committee.

Officials said the first project would be announced after the law takes effect and the Korea-U.S. Strategic Investment Corporation is launched, with implementing decrees and project screening to follow. The leading candidates are energy infrastructure projects, such as LNG export terminals or new nuclear power plants.

This development matters for the United States because it formalizes a government-backed channel to pursue large-scale investments in the U.S., potentially influencing energy markets, supply chains, and defense-industrial ties. It also signals Korea’s willingness to advance commitments tied to tariff negotiations and could affect the broader U.S.–Korea economic relationship, including how markets and policy interact around energy and critical technologies. The move comes against a backdrop of U.S. pressure earlier this year, including a threat to raise Korean import tariffs to 25% and the initiation of Section 301 investigations into multiple countries.