National Assembly to Pass Special Act on Investment in the United States Today... TK Integration Act Fails to Pass
Plenary Session on March 12 to Address Over 50 Livelihood Bills
Special Act on Investment in the United States Passes, Easing Tariff Risks
TK Administrative Integration Act Fails Amid Party Disagreements
On the afternoon of March 12, the National Assembly will process the “Special Act on Strategic Investment Management between Korea and the United States” (Special Act on Investment in the United States) at its plenary session, as a follow-up measure to Korea-U.S. trade negotiations. On this day, the ruling and opposition parties plan to accelerate the previously stalled legislative process by passing more than 50 livelihood-related bills, including the Special Act on Investment in the United States.
The special act includes concrete implementation plans for executing $350 billion in investments in the United States. The core measure is for the government to invest KRW 2 trillion in capital to establish the Korea-U.S. Strategic Investment Corporation, which will then create an investment fund for the United States under its umbrella. The fund will be financed by the government using profits from foreign exchange reserves, and if additional funds are needed, it will be supplemented through the issuance of Korea-U.S. strategic investment bonds or loans from financial institutions.
Provisions for managing investment risk are also included. An Investment Management Committee under the Ministry of Trade, Industry and Energy will review the commercial viability of investment candidates, while a Management Committee under the Ministry of Economy and Finance will make the final decision. The National Assembly procedure has also been simplified from prior approval to prior reporting, balancing oversight functions with investment efficiency.
With the passage of this bill, the legislative procedures for the Korea-U.S. trade negotiations are effectively being completed, and it is expected that the tariff pressure risk—previously raised by U.S. President Donald Trump—will also be alleviated. On the same day, the plenary session will also handle amendments to the Information and Communications Network Act and the Telecommunications Business Act to counter voice phishing, as well as an amendment to the Emergency Medical Services Act aimed at addressing regional disparities in emergency medical services.
Meanwhile, the Daegu-Gyeongbuk (TK) Administrative Integration Act failed to pass the plenary session on this day. Analysis suggests that the likelihood of reaching an agreement before the election has significantly decreased. The People Power Party favors processing the TK Administrative Integration Act first, but the Democratic Party maintains that it should be handled together with the Chungnam and Daejeon-related bills.
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Song Eon-seok, floor leader of the People Power Party, said, “We demand the immediate processing of the TK Administrative Integration Act,” and proposed a ‘one-shot’ passage of the four special acts for Gangwon, Jeonbuk, Busan, and Jeju during the March provisional session. Baek Seung-ah, the Democratic Party’s spokesperson for the floor, said, “There is opposition from People Power Party-affiliated assembly members in the Daegu-Gyeongbuk and Daejeon-Chungnam city councils,” calling for internal coordination of opinions.
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