Special Act on Investment in the U.S. Passes Plenary Session... Korea-U.S. Trade Response Legislation Completed (Comprehensive)

The Special Act on Investment in the U.S., introduced as a follow-up measure to the Korea-U.S. trade negotiations, has passed the plenary session of the National Assembly.

On this day, the National Assembly held a plenary session and passed the "Special Act on the Operation and Management of Strategic Investment between the Republic of Korea and the United States of America" with 226 votes in favor, 8 against, and 8 abstentions out of 242 members present.

This special act outlines specific implementation measures for promoting investments in the United States worth approximately 350 billion dollars. The main provisions involve the government establishing the Korea-U.S. Strategic Investment Corporation by injecting 2 trillion won in capital, and creating a U.S. investment fund under the corporation.

The fund will be primarily financed by the government using profits from foreign exchange reserves, with any shortfall to be supplemented through the issuance of Korea-U.S. strategic investment bonds or borrowing from financial institutions.

Investment risk management mechanisms have also been included. The Business Management Committee, under the Ministry of Trade, Industry and Energy, will review the commercial viability of potential investments, while the Operation Committee under the Ministry of Economy and Finance will make the final investment decisions. For the National Assembly, the process has been streamlined by requiring prior reporting instead of prior approval, balancing the need for investment speed and parliamentary oversight.

On March 12th, the Special Act on Strategic Investment Management between Korea and the United States (Special Act on Investment in the U.S.) was presented at the plenary session of the March extraordinary National Assembly held in the National Assembly. March 12, 2026. Photo by Hyunmin Kim

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However, some minority parties have raised concerns about the legislative process. Although the Democratic Party of Korea and the People Power Party unanimously introduced the bill during the plenary session, parties such as the Rebuilding Korea Party and the Progressive Party pointed out the possibility of a rushed passage and highlighted issues with the fund management structure.

Son Sol, a lawmaker from the Progressive Party, stated, "This bill effectively gives the United States a free pass to exert investment pressure," and pointed out, "Public funds such as the National Pension Fund, which serve as funding sources, are designed to bypass the controls of the National Fiscal Act, potentially shifting the burden of investment losses onto the public."

In connection with this, the United States continues to exert trade pressure. On March 11 (local time), the administration of President Donald Trump announced that it had initiated a Section 301 investigation-a preliminary step for imposing additional tariffs-targeting 16 economic entities, including Korea.

With the passage of this special act, the domestic legislative procedures related to Korea-U.S. trade negotiations are effectively concluded, and there is an expectation that the tariff pressures repeatedly mentioned by President Trump will be at least partially eased.

After the bill was passed, National Assembly Speaker Woo Wonshik evaluated the special act as an example of bipartisan cooperation in addressing economic challenges. Speaker Woo said, "In a situation where external economic conditions surrounding our country are extremely severe, the National Assembly processed this bill through bipartisan agreement," adding, "It is a meaningful example that shows political strife cannot take precedence over the national interest."

He added, "I hope this special act will serve as an opportunity to strengthen strategic industrial cooperation between Korea and the United States and to mitigate trade risks."

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