SEOUL: South Korea’s cabinet on Tuesday endorsed a special law to facilitate the country’s US$350 billion investment pledge to the United States (US), paving the way for implementation of the commitment under a bilateral trade deal reached last year.
Yonhap News Agency reported that the approval came five days after the bill passed the National Assembly with bipartisan support, giving legal backing to a memorandum of understanding (MOU) signed between Seoul and Washington in November.
The law will take effect three months after it is promulgated.
At the core of the legislation is the creation of a joint corporation to carry out Seoul’s US$350 billion investment commitment, along with a strategic investment fund to be set up under the entity.
Under the plan, US$150 billion will be allocated to the shipbuilding sector, while the remaining US$200 billion will go to projects that support the economic and national security interests of both countries.
The corporation will have capital of 2 trillion won (US$1.34 billion), fully funded by the South Korean government. Details such as the timing and method of funding will be set by presidential decree.
The passage comes about two months after US President Donald Trump threatened to raise the “reciprocal” tariffs on South Korea from 15 per cent to 25 per cent, citing delays in Seoul’s legislative process. – BERNAMA-YONHAP
