South Korea's parliament has enacted legislation enabling a $350bn investment package in the United States, following intense pressure from Washington to address high tariffs on Korean exports. The special bill creates a state-run investment vehicle with Won2tn ($1.35bn) in capital to facilitate the massive economic commitment.

Under the bilateral trade deal, South Korea will invest $200bn in cash across strategic sectors including semiconductors, pharmaceuticals, and AI over the coming years. The remaining $150bn will come through a shipbuilding partnership as the US seeks to strengthen its naval capabilities with Korean shipbuilders. Annual investments are capped at $20bn, with profits shared between the two nations until the initial investment is recouped.

The legislation allows US investments without commercial justification when necessary for national security and supply chain stability, though parliamentary subcommittee approval is required. The bill is expected to take effect in June after cabinet review. This move comes as Washington launched a Section 301 investigation into South Korea's alleged excess production capacity, potentially threatening new tariffs on the petrochemical sector.