U.S. Threatens Tariff Hikes as Korea’s Special Investment Law Remains Pending
Creatrip Team
a month ago
South Korea faces possible U.S. tariff increases after President Trump said Seoul hadn’t ratified a trade agreement tied to a $200 billion-per-year (total $2 trillion) U.S.-bound investment package. The package, agreed during last year’s APEC meeting, targets semiconductors, critical minerals, energy and AI, with an additional $150 billion for shipbuilding. Seoul planned to codify the memorandum of understanding (MOU) into a “Special Act for Strategic Investment into the U.S.” that would set up a temporary investment fund and a state-backed investment corporation. Five competing bills are pending in the National Assembly with differences over parliamentary oversight, the role and capital of the investment corporation, and reporting requirements. Delays have been blamed less on substantive disagreement and more on a packed legislative schedule (budget debates and confirmation hearings). The government has held interagency meetings and dispatched trade officials to Washington to reassure U.S. counterparts of Korea’s intent to implement the deal. (MOU: memorandum of understanding)
