Seoul: The ruling Democratic Party (DP) is set to propose a special bill to support South Korea's commitment to invest in the United States as part of a recently finalized tariff agreement. The proposal, expected to be introduced by DP floor leader Rep. Kim Byung-kee, aims to establish a special fund to facilitate this significant investment.

According to Yonhap News Agency, the terms of the agreement were finalized during a meeting between President Lee Jae Myung and U.S. President Donald Trump in Gyeongju. South Korea will provide $200 billion in cash installments and an additional $150 billion for bilateral cooperation in shipbuilding. Once the bill is submitted, U.S. tariffs on South Korean automobiles are anticipated to decrease from the current 25 percent to 15 percent, with the reduction applied retroactively to the month of submission.

The DP is moving swiftly to submit the bill this month, but Rep. Kim stated on Tuesday that it would undergo a thorough review to incorporate feedback from South Korean businesses. This review process aims to ensure that the bill adequately addresses the needs and concerns of the business community in South Korea.

Meanwhile, Rep. Huh Young, a senior deputy floor leader of policy affairs for the DP, rejected the main opposition People Power Party's request for parliamentary ratification of the investment package. He emphasized that the agreement is based on a memorandum of understanding, which is not legally binding under international law and does not require ratification. This stance reflects the mutual trust between South Korea and the United States in implementing the agreement.