Seoul: The ruling Democratic Party (DP) and the main opposition People Power Party (PPP) have reached an agreement to create a state-run entity focused on executing South Korea's investment package for the United States. The decision was announced by officials following discussions held on Thursday.

According to Yonhap News Agency, the agreement follows a statement by the rival parties indicating their intention to pass a special U.S. investment bill without delay on March 12, as part of a bilateral trade deal with Washington. The new entity will be fully financed by the South Korean government, with a paid-in capital of 2 trillion won (US$1.36 billion).

In a subcommittee meeting of a special parliamentary committee dedicated to advancing legislation for South Korea's $350 billion investment pledge to the U.S., both parties concurred on establishing a corporation with a workforce capped at 50 employees. "After discussions on whether to entrust the task to the Korea Investment Corporation or establish a new corporation, we agreed to create a new corporation at a minimal scale," stated PPP Rep. Park Soo-young.

The corporation's board of directors will comprise three members, each required to have a minimum of 10 years' experience in the financial sector or strategic industries. This measure aims to prevent crony appointments. Initially, the PPP suggested setting up a fund under the Ministry of Finance and Economy to manage the investment, citing the significant costs of establishing a new entity. Meanwhile, the DP emphasized the need for a dedicated investment corporation to support Seoul's U.S. investment plans effectively.

In a related development, U.S. President Donald Trump warned in January of potential reciprocal tariff increases on South Korean goods, reverting them to 25 percent from the current 15 percent, due to delays in Seoul's legislative process necessary for advancing the trade deal.