South Korean lawmakers pass law to manage Seoul's pledge of $350 billion
in US investments
[March 12, 2026] By
KIM TONG-HYUNG
SEOUL, South Korea (AP) — South Korean lawmakers on Thursday passed a
law to implement a pledge of $350 billion in U.S. investments Seoul made
last year to avoid the Trump administration’s highest tariffs.
Government officials had urged lawmakers to quickly pass the contested
bill, submitted in November, as uncertainty mounts for the country’s
trade-dependent economy, already rattled by President Donald Trump’s
protectionist swing and now fearing the fallout from his war on Iran.
The bill’s passage came hours after the Trump administration increased
pressure on trade partners by opening a new investigation into
manufacturing in foreign countries, including China and U.S. allies
South Korea and Japan, which could result in new import taxes if U.S.
officials see their practices as unfair.
Trump and his team have made clear they’re seeking to use new tariffs to
recoup lost revenue after the U.S. Supreme Court invalidated his
sweeping tariffs issued with emergency powers.
China expressed opposition to the move and called for negotiations to
resolve any differences. “China opposes any form of unilateral tariff
measures,” Foreign Ministry spokesperson Guo Jiakun said in Beijing.
“Tariff wars and trade wars serve no one’s interests.”
The South Korean law, which passed 226 to 8, calls for establishing a
public corporation to manage the promised U.S. investments, including
reviewing and selecting projects based on input from South Korean and
U.S. trade authorities.
Some lawmakers spoke against the bill ahead of the vote, expressing
frustration over Trump’s new trade investigations and the potential
impact of the war in the Middle East, which has exposed the
vulnerability of South Korea’s export-dependent economy and reliance on
imported fuel.
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The National Assembly passes a law to implement hundreds of billions
of dollars in U.S. investments at the National Assembly in Seoul,
South Korea, Thursday, March 12 2026. (AP Photo/Ahn Young-joon)
 “We cannot be the money machine
Trump wants us to be,” said Son Sol, a member of the minor
opposition Progressive Party. She said the bill does not give the
legislature sufficient power to review and reject investments that
could go against South Korean business or public interests.
Following months of tense negotiations, South Korea finalized an
agreement with the United States in November to invest $200 billion
in U.S. semiconductor and other high-tech industries and another
$150 billion in shipbuilding in exchange for Washington lowering
reciprocal tariffs on Seoul from 25% to 15%.
The agreement, which followed a breakthrough at an October summit
between Trump and South Korean President Lee Jae Myung, also caps
South Korean investments at $20 billion a year to protect the
country’s foreign currency reserves.
Lee’s liberal Democratic Party introduced the legislation in
November but faced resistance from opposition lawmakers worried
about the economic impact. The legislative holdup frustrated Trump,
who in January threatened to raise tariffs on South Korean autos,
pharmaceuticals and other goods back to 25%, increasing pressure on
the opposition to move the bill forward.
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Associated Press writer Ken Moritsugu in Beijing contributed.
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