June 09, 2026
South Korea's cabinet approved on Tuesday a presidential decree as part of the process to allow $350 billion of strategic investments in the United States to proceed under a trade deal struck between the countries last year.
The decree specified some terms and conditions in the investment plan, including the definition of "commercial reasonableness," which will serve as the basis for $200 billion in direct investments in strategic US industries.
South Korea also agreed to invest $150 billion in shipbuilding-related cooperation in return for more favourable tariff terms.
Seoul defines a commercially reasonable project as one that can generate enough revenue to fully cover the principal and interest costs of the investment during the projected period of a project.
