The South Korean National Assembly convened a plenary meeting on Monday, February 9th, to overwhelmingly pass the establishment of a special committee aimed at expediting the review of a special bill related to a $350 billion investment commitment to the United States. The Speaker of the South Korean National Assembly expressed the hope to complete the legislation in the coming weeks to maintain the country’s existing tariff levels.
Last month, President Trump of the United States announced that due to the South Korean National Assembly’s failure to timely approve the trade agreement reached in 2025, tariffs on South Korean cars, pharmaceuticals, and timber products will increase from 15% to 25%.
Under the U.S.-South Korea trade agreement, South Korea had promised a $350 billion investment in the United States (with $150 billion designated for the shipbuilding industry), but due to legislative delays, the investment has not been realized.
On Monday, the Speaker of the South Korean National Assembly, Woo Won-sik, urged the committee to immediately begin their work with the goal of passing the bill by the end of February.
Woo Won-sik stated: “I hereby inform the U.S. government that the National Assembly of the Republic of Korea is reviewing this bill with firm determination and, in compliance with our laws and procedures, is aiming to expedite the process.”
Based on the results of consultations, the newly established special committee will consist of 16 members, including 8 from the ruling party, the Democratic Party of Korea, 7 from the main opposition party, the People Power Party, and 1 from a minor party or an independent representative, with a member from the People Power Party serving as the committee chair.
The committee must include at least one member from the parliamentary affairs committee, the finance, economy and planning committee, and the industry, commerce, resources, and small and medium-sized businesses committee.
The special committee has been granted a one-month period to review the bill and is responsible for examining the Special Act on U.S. Investment Management, also known as the Special Act on Investment in the U.S., aimed at implementing the “Strategic Investment Memorandum” (MOU) signed by the U.S. and South Korea in November last year, and establishing the framework of the “U.S.-South Korea Strategic Investment Fund.”
There is an external expectation that through the operation of this committee, a consensus between the ruling and opposition parties can be reached and legislation completed before the deadline of March 9th.
Yeo Han-koo, South Korea’s trade representative and Minister of the Ministry of Industry’s Trade Negotiations Bureau, recently returned to South Korea after visiting the United States and stated that the U.S. side clearly cited legislative delays as the primary reason for issuing the tariff warning. He believes that the parliament’s swift action in reviewing the bill will definitely help prevent an immediate tariff increase.