South Korea Accelerates February Debate on $350 Billion Investment Bill After Trump’s 25% Tariff Threat
Updated (4 articles)
DP Schedules February Parliamentary Debate on Investment Bill The ruling Democratic Party announced it will open deliberations on the special investment bill in February, aiming to complete review and vote by month‑end. The bill, submitted in November, is intended to satisfy the $350 billion investment commitment under the October trade pact. DP officials said they will coordinate with the government and the opposition to meet the tight schedule [1][2].
Trump Announces 25% Reciprocal Tariffs on South Korean Goods U.S. President Donald Trump posted that reciprocal and auto tariffs on South Korean exports will rise from 15% to 25%, accusing the National Assembly of failing to implement the bilateral deal. The announcement came as the investment bill was pending in a parliamentary committee, prompting Seoul to treat the threat as pressure to act quickly. Analysts linked the tariff move directly to the pending legislation [1][2][3][4].
Finance Ministry to Engage United States on Legislative Progress South Korea’s Ministry of Economy and Finance said it will hold an emergency inter‑agency meeting and seek direct dialogue with U.S. officials about the bill’s status. Finance Minister Choi is scheduled to meet the chair of the parliamentary finance committee later Tuesday to request cooperation, while Industry Minister Kim Jung‑kwan plans a Washington visit to discuss the issue with Commerce Secretary Howard Lutnick. No formal notice of the tariff increase has been received from Washington, underscoring the diplomatic urgency [3][4].
Opposition Demands Formal Trade‑Agreement Ratification People Power Party floor leader Song Eon‑seog criticized the DP’s focus on the investment bill, arguing that parliamentary ratification of the trade pact is essential to protect national interests. PPP trade committee head Lee Chul‑gyu warned that even an expedited process normally takes six to seven months, urging continued dialogue with the United States. The opposition’s stance creates a potential hurdle to the DP’s bipartisan push for a February passage [1][2].
Sources (4 articles)
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[1]
Yonhap: DP to Push Special Investment Bill in February After U.S. Tariff Threat: Details DP’s plan for February deliberation, emphasizes need for opposition cooperation, cites financing viability concerns, and notes opposition’s focus on trade ratification .
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[2]
Yonhap: DP seeks February debate on U.S. trade investment bill after Trump’s tariff threat: Mirrors earlier report, adds PPP trade committee head’s call for six‑to‑seven‑month timeline and stresses active U.S. dialogue, highlighting procedural constraints .
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[3]
Yonhap: Seoul to Consult U.S. on Investment Bill After Trump Tariff Announcement: Reports Ministry of Economy and Finance’s intent to coordinate with Washington, mentions scheduled finance‑committee meeting and Industry Minister’s upcoming Washington trip, notes lack of formal U.S. notice .
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[4]
Yonhap: Seoul to consult U.S. on investment bill after Trump’s tariff hike announcement: Reiterates ministry’s coordination plan, quotes officials on gauging U.S. intentions, and stresses the bill’s role in mitigating tariff impact, providing a photo‑caption detail of November submission .
Timeline
Oct 2025 – South Korea and the United States finalize a bilateral trade agreement that includes a pledge for Seoul to invest US$350 billion in the United States, laying the groundwork for a future special investment bill [1].
Nov 26, 2025 – The ruling Democratic Party (DP) submits a special investment bill to the National Assembly to enable the US$350 billion investment commitment under the October trade pact [4].
Jan 27, 2026 – President Donald Trump posts that reciprocal and auto tariffs on South Korean goods will rise from 15 % to 25 %, accusing the Korean legislature of not “living up to” the trade deal [1][2][3][4].
Jan 27, 2026 – The Ministry of Economy and Finance announces it will coordinate closely with the United States on the bill, convenes an emergency inter‑agency meeting, and schedules a meeting later that day between Finance Minister Choi and the parliamentary finance committee chair to seek legislative cooperation [3][4].
Jan 27, 2026 – Industry Minister Kim Jung‑kwan, then in Canada, plans to travel to Washington for talks with U.S. Commerce Secretary Howard Lutnick, as the Ministry of Trade, Industry and Resources monitors the tariff dispute [3].
Jan 27, 2026 – PPP trade committee head Rep. Lee Chul‑gyu warns that “the Korean legislative process normally takes six to seven months even when expedited,” urging active dialogue with the United States to avert the tariff hike [1].
Jan 27, 2026 – DP floor spokesperson Kim Hyun‑jung says the investment bill “requires thorough review of financing and commercial viability of proposed projects,” stressing the need for bipartisan scrutiny [2].
Jan 27, 2026 – PPP floor leader Song Eon‑seog criticizes the government’s focus on the bill, stating that “formal parliamentary ratification of the trade pact is essential” and blames the president and government for the tariff threat [1][2].
Feb 2026 (planned) – The Democratic Party seeks to launch parliamentary deliberation on the special investment bill in February, with review procedures scheduled for the month and an aim to pass the measure by the end of February [1][2].
Feb 2026 (planned) – The administration asks that the bill be reviewed and passed by the end of February, coordinating with the opposition to meet the accelerated timeline and unlock the US$350 billion investment pledge [1][2].