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South Korean lawmakers have passed the “Special Act on Investment in the United States” on Thursday, pledging an investment of USD 350 billion (roughly 517 trillion won). Previously, President Donald Trump urged the Korean Legislature to enact the “Historic Trade Agreement” in a Truth Social post, in which he threatened to reinstate South Korean “reciprocal” tariffs, raising them from 15% to 25%.
At the plenary session, the National Assembly passed the Special Investment Act with 226 votes in favor, 8 votes against, and 8 abstentions. Following the vote, National Assembly Speaker Woo Won-sik said, “I hope it will be a meaningful opportunity to strengthen cooperation between the two countries and alleviate tariff customs risks.”
The special-purpose bill establishes the Korea-U.S. Strategic Investment Corporation to implement its USD 350 billion investment memorandum of understanding (MOU) with the United States. The MOU requires the corporation to fund USD 150 billion in shipbuilding cooperation and USD 200 billion in US strategic industries. These sectors comprise semiconductors, pharmaceuticals, critical minerals, energy, AI, and quantum computing. The corporation will directly fund up to USD 20 billion in investments in the United States each year and provide loan guarantees until reaching a total of USD 350 billion.
According to Articles 33 to 36 of the bill, the investment corporation will raise funds from returns on the national foreign exchange reserves, managed by the Bank of Korea (BOK) and partly owned by Korea’s Ministry of Finance and Economy, and from international bond issuance guaranteed by the Korean government.
The new legislation also provides options for investments that lack commercial rationality. Article 3, Clause 3 allows investments to proceed even if profitability is low and commercial viability is insufficient, provided there are unavoidable reasons such as national security or supply chain stability. However, prior consent from the relevant National Assembly Standing Committee is mandatory.
Following the bill’s passage, South Korean Prime Minister Kim Min-seok met with President Trump at the White House. Beyond the investment rollout, the leaders reportedly discussed resuming diplomacy with North Korea. Speculation suggests Trump may seek dialogue with North Korean leader Kim Jong-un during an anticipated visit to China in late March or early April.
Despite the new law, tariff uncertainty persists. The United States recently launched an Article 301 Trade Act investigation into 16 jurisdictions, including South Korea, China, Japan, and the European Union. The U.S. initiated this investigation after the U.S. Supreme Court struck down President Trump’s previous tariff implementations under the International Emergency Economic Powers Act (IEEPA).
The post South Korea commits $350 Billion to U.S. strategic industries following Trump tariff pressure appeared first on JURIST - News.
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At the plenary session, the National Assembly passed the Special Investment Act with 226 votes in favor, 8 votes against, and 8 abstentions. Following the vote, National Assembly Speaker Woo Won-sik said, “I hope it will be a meaningful opportunity to strengthen cooperation between the two countries and alleviate tariff customs risks.”
The special-purpose bill establishes the Korea-U.S. Strategic Investment Corporation to implement its USD 350 billion investment memorandum of understanding (MOU) with the United States. The MOU requires the corporation to fund USD 150 billion in shipbuilding cooperation and USD 200 billion in US strategic industries. These sectors comprise semiconductors, pharmaceuticals, critical minerals, energy, AI, and quantum computing. The corporation will directly fund up to USD 20 billion in investments in the United States each year and provide loan guarantees until reaching a total of USD 350 billion.
According to Articles 33 to 36 of the bill, the investment corporation will raise funds from returns on the national foreign exchange reserves, managed by the Bank of Korea (BOK) and partly owned by Korea’s Ministry of Finance and Economy, and from international bond issuance guaranteed by the Korean government.
The new legislation also provides options for investments that lack commercial rationality. Article 3, Clause 3 allows investments to proceed even if profitability is low and commercial viability is insufficient, provided there are unavoidable reasons such as national security or supply chain stability. However, prior consent from the relevant National Assembly Standing Committee is mandatory.
Following the bill’s passage, South Korean Prime Minister Kim Min-seok met with President Trump at the White House. Beyond the investment rollout, the leaders reportedly discussed resuming diplomacy with North Korea. Speculation suggests Trump may seek dialogue with North Korean leader Kim Jong-un during an anticipated visit to China in late March or early April.
Despite the new law, tariff uncertainty persists. The United States recently launched an Article 301 Trade Act investigation into 16 jurisdictions, including South Korea, China, Japan, and the European Union. The U.S. initiated this investigation after the U.S. Supreme Court struck down President Trump’s previous tariff implementations under the International Emergency Economic Powers Act (IEEPA).
The post South Korea commits $350 Billion to U.S. strategic industries following Trump tariff pressure appeared first on JURIST - News.
Continue reading...
Note: We don't have any responsibilities about this news. Its been posted here by Feed Reader and we had no controls and checking on it. And because News posted here will be deleted automatically after 21 days, threads are closed so that no one spend time to post and discuss here. You can always check the source and discuss in their site.