Seoul: The National Assembly on Thursday passed a significant special bill concerning South Korea's US$350 billion investment pledge to the United States. This decision, coming approximately three months after the bill's introduction by the ruling party, represents a notable step in the trade agreement between the two countries.

According to Yonhap News Agency, the bill received approval during a plenary session of the Assembly, enjoying support from both the ruling Democratic Party (DP) and the main opposition People Power Party (PPP). Following the bill's passage, President Lee Jae Myung announced his commitment to swiftly implement the necessary follow-up measures for the legislation's execution.

President Lee emphasized his dedication to ensuring that the strategic investment will aid in the economic progress of both South Korea and the U.S., as well as strengthen supply chain stability and promote national security interests. He shared these remarks on his social media platform, X.

The bill's passage marks a critical milestone after being introduced by the DP in November. It aims to facilitate Seoul's investments in the U.S., encompassing the execution of several memorandums of understanding and the establishment of a "strategic investment fund" for the $350 billion package.

The investment is divided into $150 billion for shipbuilding collaboration and $200 billion for projects in key strategic sectors. The legislation mandates the creation of a new state-run corporation dedicated to executing the investment package, with an initial capital of 2 trillion won (US$1.36 billion) entirely funded by the South Korean government.

This corporation will employ a total workforce of 50 individuals. The board of directors will include three members required to have at least a decade of experience in the financial sector or strategic industries to prevent crony appointments.

The urgency for the bill's passage was heightened following threats from U.S. President Donald Trump to increase reciprocal tariffs on Korean goods from 15 percent back to 25 percent, citing delays in Seoul's legislative process necessary for advancing the trade agreement.

To expedite the legislation, the DP and the PPP formed a special committee, reaching an agreement earlier this week to pass the bill after prolonged discussions.