South Korean lawmakers on Thursday passed a law aimed at managing the country’s pledge to invest $350 billion in the United States, a commitment made last year as part of a trade agreement designed to avoid steep U.S. tariffs on Korean exports. The legislation was approved by the National Assembly with a 226–8 vote, reflecting broad bipartisan support despite concerns raised by some opposition lawmakers.

The new law establishes a state-backed corporation responsible for overseeing and implementing the massive investment plan. The entity will evaluate and select projects in coordination with both South Korean and U.S. authorities, ensuring that the investments align with strategic economic priorities and bilateral trade commitments.

The investment pledge is part of a broader agreement reached between Seoul and Washington in 2025 to ease trade tensions and reduce tariffs on South Korean goods. Under the arrangement, South Korea committed to directing funds into key sectors of the U.S. economy, including semiconductors, shipbuilding and other strategic industries, in exchange for lower tariff rates on Korean exports.

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Government officials had urged lawmakers to approve the bill quickly, citing mounting uncertainty in the global economy and the importance of maintaining stable trade relations with the United States. South Korea’s export-driven economy has faced pressure from protectionist trade policies and geopolitical tensions that threaten global supply chains.

However, the proposal sparked debate in the National Assembly. Some lawmakers argued the scale of the investment could place excessive financial strain on South Korea and warned that parliament should have stronger oversight of how funds are allocated. Critics also raised concerns about ensuring that investments serve South Korea’s economic interests rather than simply responding to external pressure.

Despite these concerns, the legislation ultimately moved forward after months of negotiations between political parties. The government believes the investment framework will strengthen economic cooperation with Washington while helping safeguard South Korea’s trade-dependent economy from future tariff disputes.

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