SEOUL, June 9 – South Korea’s government ministers gave final approval Tuesday to a presidential order that advances a massive $350 billion investment commitment in American industries, fulfilling terms of a bilateral trade agreement reached last year.
The approved order establishes specific guidelines for the investment package, particularly defining what constitutes “commercial reasonableness” – a key standard that will guide $200 billion worth of direct investments in strategic American sectors.
Additionally, South Korea committed to providing $150 billion toward shipbuilding partnerships in exchange for better tariff treatment from the United States.
Under Seoul’s framework, a commercially viable project must be capable of producing sufficient revenue to cover both the original investment amount and interest expenses throughout the project’s anticipated duration.
Project timelines will be determined through discussions with Washington, according to the government statement.
The South Korean government will establish a state-sponsored investment entity designed to operate for two decades.
This investment package represents South Korea’s commitment under the trade agreement with Washington, which provides reduced American tariffs on South Korean exports, including vehicles.
Earlier this year in January, U.S. President Donald Trump warned of potential tariff increases to 25% on South Korean products, citing Seoul’s delay in implementing the trade framework that had limited American duties to 15%.
South Korea’s National Assembly successfully passed enabling legislation for the investment plan with support from both major parties during a full session in March.
