South Korea's Cabinet has approved a bill to invest 350 billion US dollars (about Rp5.94 trillion) in the US in return for a reduction in US tariffs on South Korean cars.
As reported by ANTARA from Sputnik, Tuesday, March 17, the bill was submitted in November 2025 by the ruling Democratic Party to facilitate South Korean investment in the US, which was agreed upon after trade negotiations.
Based on the plan, the investment will include 150 billion US dollars (around Rp2.54 trillion) for cooperation in the shipbuilding sector and 200 billion US dollars (around Rp3.39 trillion) for projects in strategic sectors.
The law also regulates the establishment of a new state-owned company that will be responsible for implementing the investment package.
The basic capital will amount to 2 trillion won (about 22.7 trillion), and will be fully funded by the South Korean government.
In January 2026, US President Donald Trump announced an increase in tariffs on South Korean cars and reciprocal tariffs, citing the late submission of the bill to the National Assembly, which was then approved by the South Korean parliament on March 12.
Based on South Korean law, the bill will take effect three months after it is announced.
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