South Korea approves $350 billion investment bill in the US to reduce tariffs

South Korea’s cabinet has approved a bill to invest $350 billion in the United States in exchange for reduced US tariffs on South Korean automobiles, according to Yonhap news agency on Tuesday.

The bill was submitted in November 2025 by the ruling Democratic Party to facilitate South Korean investment in the US, following trade negotiations.

Under the plan, the investment will include $150 billion for shipbuilding cooperation and $200 billion for projects in strategic sectors.

The legislation also provides for the establishment of a new state-owned enterprise that will be responsible for implementing the investment package.

The capital will amount to 2 trillion won (approximately 22.7 trillion won), and will be fully funded by the South Korean government.

In January 2026, US President Donald Trump announced tariff increases on South Korean automobiles and reciprocal tariffs, citing delays in submitting the bill to the National Assembly. The bill was subsequently approved by the South Korean parliament on 12 March.

Under South Korean law, the bill will take effect three months after being announced.