South Korea Cabinet Approves Decree for $350 Billion U.S. Strategic Investments - News and Statistics

Jun 9, 2026

South Korea’s cabinet gave its approval on Tuesday to a presidential decree, advancing the process for $350 billion in strategic investments in the United States under a trade agreement reached between the two nations last year.

Key Investment Conditions

The decree outlined specific terms and conditions for the investment plan, including a definition of what constitutes commercial reasonableness. This definition will underpin $200 billion in direct investments targeting key U.S. industries. Additionally, South Korea committed $150 billion to shipbuilding-related cooperation in exchange for more advantageous tariff conditions.

According to Seoul, a commercially reasonable project is one capable of generating sufficient revenue to fully repay the principal and interest on the investment over the project’s expected duration. The statement noted that project lifespans will be determined through discussions with Washington.

New Investment Entity

The government plans to establish a state-backed investment corporation with a 20-year operational mandate. This investment pledge is part of a trade deal with Washington, offering tariff reductions on South Korean exports such as automobiles.

Trade Deal Context

In January, U.S. President Donald Trump threatened to increase tariffs on South Korean goods to 25%, arguing that Seoul’s parliament had not yet passed the trade framework limiting U.S. duties to 15%. The National Assembly subsequently passed a special bill authorizing the investment with bipartisan support during a plenary session in March.

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