Seoul: The ruling Democratic Party (DP) announced its intention to begin deliberation on a special investment bill related to South Korea's trade agreement with the United States next month. This decision follows U.S. President Donald Trump's recent threat to raise tariffs on South Korea.
According to Yonhap News Agency, Trump unexpectedly declared an increase in tariffs on reciprocal tariffs and auto duties on South Korea, from 15 percent to 25 percent, citing the National Assembly's failure to meet the trade deal's expectations. His comments were interpreted as a reference to a special investment bill submitted by the DP in November, which remains stalled in parliament.
In reaction, the DP stated it would intensify discussions with the government and seek collaboration with the main opposition People Power Party (PPP) to expedite the bill's review and passage. "The government has requested that the bill be reviewed and passed by the end of February," stated Rep. Jung Tae-ho of the DP, following discussions with government officials. "The review procedures will take place in February."
The proposed legislation is intended to support South Korea's US$350 billion investment package committed under the trade agreement finalized in October. Currently pending at a parliamentary committee, the bill must undergo committee deliberations before being presented for a plenary vote.
DP floor spokesperson Kim Hyun-jung expressed the party's goal to quickly pass the bill in collaboration with the opposition, emphasizing the necessity of a comprehensive review of issues such as financing and the commercial viability of the proposed projects. "There are many factors to review, which is why cooperation between the ruling and opposition parties is essential," Kim noted.
Meanwhile, the PPP criticized the government and the ruling party for prioritizing the investment bill over seeking parliamentary ratification of what it considers a significant trade agreement. "All responsibility lies with the president and the government," remarked PPP floor leader Song Eon-seog during a party meeting.
The opposition has argued that the trade agreement requires the National Assembly's ratification, whereas the DP maintains that formal ratification could compromise South Korea's interests, advocating instead for a special investment bill as a more suitable approach.
Rep. Lee Chul-gyu of the PPP, who chairs the parliamentary trade, industry, energy, and startups committee, met with Trade Minister Yeo Han-koo and Vice Industry Minister Moon Shin-hak, urging the government to engage actively with the U.S. to prevent the proposed tariff hike. "I think the U.S. side has not fully understood that the Korean parliament has a different legislative process, which takes more than six to seven months even when (bills are) handled quickly," Lee told reporters.
Lee added that both ruling and opposition parties do not oppose the trade deal with the U.S. or the investment commitment, but they differ on whether to implement it through a special investment bill or a ratification process.