South Korean Finance Minister Koo Yun-cheol said the government will review US investment projects until the enabling law is passed. Under the trade deal with the United States, South Korea is supposed to invest $350 billion in the United States.
South Korean Finance Minister Koo Yun-cheol on Tuesday said the government will review projects for US investments until the enabling law’s passage, according to KBS World.
Under last year’s trade deal, South Korea is expected to invest $350 billion in the United States in exchanged for tariff-reduction from 25 per cent to 15 per cent.
US President Donald Trump has been frustrated at the slow implementation of the trade deal. He has slammed the South Korean government for the delay in the passage of the law that would implement the deal. Last month, he warned to raise tariffs on South Korea to 25 per cent over the delay.
Koo said that it would take around three months for the bill to pass and become law. In the meantime, he said the government will conduct reviews to prevent unnecessary misunderstandings or undermining of trust between the two sides.
Koo made the announcement while presiding over a ministerial meeting on the fulfilment of a memorandum of understanding (MoU) about US investments.
Trump’s frustration and threats to raise tariffs have spooked South Korea and pressed the administration into speeding up the implementation of the trade deal.
South Korean President Lee Jae Myung on Tuesday urged the National Assembly speed up the trade deal-related legislation and warned that the current pace leaves the country dangerously exposed to rising global trade pressures. He urged parliamentarians to “unite your efforts and prioritise national interests, especially in matters concerning foreign relations” irrespective of party affiliations.
“With the current pace of legislation, it is extremely difficult to respond proactively to these changes in the international community. To support trade negotiations with other countries, advance regulatory innovation and secure momentum for a major national transformation, a wide range of legislation aimed at strengthening Korea’s competitiveness is urgently needed,” Lee further said.
Earlier, the National Assembly on Monday set up a special committee to handle legislation for the investment pledge under the trade deal with the United States.
Under the trade deal with the United States, in exchange for tariff-reduction from 25 per cent to 15 per cent, South Korea would invest $350 billion in the United States. Of these investments, cash investments up to $200 billion would be capped at $20 billion a year and another $150 billion would be invested in shipbuilding operations in the United States.
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