South Korea Parties Agree to Pass $350 Billion US Investment Bill

The ruling and opposition parties of South Korea reached a bipartisan agreement on March 4, 2026, to expedite the passage of a special investment bill. The legislation facilitates a $350 billion investment package promised to the United States following trade deals reached between President Lee Jae Myung and U.S. President Donald Trump.

Trade Minister Yeo Han-koo urged the National Assembly to finalize the bill by March 9 to stabilize trade relations. The urgency stems from threats by Donald Trump to raise reciprocal tariffs on Korean goods from 15 percent back to 25 percent due to legislative delays. The People Power Party intends to complete its review by March 9, with a final parliamentary plenary session vote scheduled for March 12 at the latest.

Lawmakers cited the national interest and the need to prevent severe U.S. trade retaliation as the primary drivers for the cooperation. This legislative push coincides with increased global instability following U.S. and Israeli military actions against Iran and a U.S. Supreme Court decision to strike down Trump's global reciprocal tariffs. In response to that ruling, Trump announced plans to implement new differential, country- and item-based tariffs. While the parties reached consensus on the investment package, they failed to agree on separate proposals regarding administrative mergers for the Daegu-North Gyeongsang and Daejeon-South Chungcheong regions.