Seoul: South Korea will explain the National Assembly's efforts to pass a special investment bill tied to a bilateral trade deal with the United States in a bid to ease Washington's concerns over delays, a senior presidential aide said Wednesday. Kim Yong-beom, the presidential chief of staff for policy, addressed reporters on the matter.
According to Yonhap News Agency, U.S. President Donald Trump's announcement of plans to raise tariffs on South Korean goods and vehicles from 15 percent to 25 percent appears linked to the slower-than-expected legislative process. Kim stated that the U.S. complaint seems to arise entirely from the delayed legislation at the National Assembly.
The ruling Democratic Party submitted the bill in November to support South Korea's $350 billion investment pledge. It is currently pending at a parliamentary committee and must clear committee deliberations before being put to a plenary vote. Kim noted Washington's dissatisfaction with the review process and indicated that the government will enhance communication with lawmakers to expedite the bill's passage, potentially in February.
Kim emphasized the significance of upcoming talks between Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick, and mentioned that Trade Minister Yeo Han-koo is also scheduled to meet with U.S. Trade Representative Jamieson Greer.
Even before the bill's passage, Kim mentioned that the government might conduct preliminary reviews of potential investment projects as part of preparations for full-scale implementation. Addressing speculation over possible real estate tax reforms, Kim clarified that the government is not considering new tax regulations in the near term, though he did not rule out the use of tax policy if necessary.
Kim described taxation as a critical component of fundamental measures to stabilize the real estate market but stressed that no such measures are expected to be announced within the next one or two months. He noted that this issue requires long-term, in-depth discussions involving multiple ministries.
Kim also conveyed that President Lee Jae Myung has directed the government to overhaul the financial market to support the ongoing stock market rally, adding that the Korea Exchange and the Financial Services Commission have commenced discussions on fundamental reform measures.