Seoul: The National Assembly is poised to pass a significant bill concerning South Korea's $350 billion investment commitment to the United States following a bipartisan agreement reached by rival parties on Monday.
According to Yonhap News Agency, the bill received unanimous approval from both the ruling Democratic Party (DP) and the main opposition People Power Party (PPP) during a meeting on Monday and is scheduled for a vote in a plenary session on Thursday. The special committee, established last month to expedite the legislation, held its final plenary meeting as its 30-day mandate was nearing expiration.
The bill outlines the creation of a new state-run corporation tasked with implementing the investment package, featuring a paid-in capital of 2 trillion won ($1.36 billion), fully financed by the South Korean government. The corporation will employ 50 workers and have a board of directors comprising three members, each required to possess at least 10 years of experience in the financial sector or strategic industries to prevent cronyism.
Introduced by the DP last November, the bill aims to fulfill Seoul's investment promises to the U.S., as part of a trade agreement reached by the two nations last year. The legislation delineates the procedures necessary for executing Seoul's investments in the U.S., including the implementation of memorandums of understanding and the formation of a "strategic investment fund" for the $350 billion package.
Initially, the rival parties considered allowing private companies to contribute to the fund but ultimately decided to omit this clause. "The clause was dropped as there were concerns from companies that they would have no choice but to contribute if they were pressured to do so," PPP Representative Park Soo-young explained to reporters after the committee meeting.
The South Korean government has been eager to hasten the bill's passage after U.S. President Donald Trump threatened to increase reciprocal tariffs on Korean goods back to 25 percent from 15 percent in January, citing delays in Seoul's legislative process required to advance the trade deal.