South Korea’s cabinet approved a presidential decree to implement a $350 billion US investment plan, clearing a key administrative step in a trade framework designed to secure lower tariffs on Korean exports.
The plan stems from a trade agreement reached with Washington last year. It divides the investment into two major buckets: $200 billion for strategic US industries and $150 billion for shipbuilding cooperation.
The decree defines how the investment program will operate, including the standard for commercial reasonableness. Under the framework, a project must be capable of generating enough revenue to cover its principal and interest costs over the expected investment period.
South Korea will also create a state backed investment corporation to manage the program. The entity is expected to operate for 20 years and serve as the main vehicle for deploying capital into US projects.
The National Assembly passed the special investment bill in March with bipartisan support, after President Donald Trump threatened to raise tariffs on South Korean goods if Seoul failed to enact the framework.
