South Korea's $350 Billion Investment Boost: A Game-Changer for U.S. Tariffs

South Korea's ruling Democratic Party has introduced a bill to create a special fund for $350 billion of investment in the U.S. The fund seeks to meet conditions set by Washington for reducing tariffs on Korean exports. This move comes after months of negotiation between the nations.

South Korea's ruling Democratic Party has introduced a groundbreaking bill designed to create a special fund aimed at financing $350 billion in American investment. This effort results from an agreement with Washington to reduce U.S. tariffs on South Korean exports, the Industry Ministry announced.

According to a statement from the ministry, the bill was crafted in collaboration with the government. It is instrumental in allowing the U.S. to retroactively lower tariffs on South Korean vehicles and parts, effective November 1. The agreement follows over three months of rigorous negotiations to structure the sizable investment without destabilizing the South Korean won.

The special act, pending legislation, envisages establishing a fund sourced from South Korea's foreign assets and offshore government-backed bonds. The investment includes $250 billion in strategic U.S. industries and $150 billion to revitalize America's shipbuilding sector. The ministry also informed U.S. Commerce Secretary Howard Lutnick about the legislative move, urging swift execution of the agreed tariff cuts.

(With inputs from agencies.)