Auto Industry Welcomes Passage of US Investment Special Act by National Assembly...Tariff Uncertainty Resolved
"Securing a Level Playing Field with Rival Countries"
The automotive industry has welcomed the passage of the “US Investment Special Act” by the National Assembly, saying it will resolve uncertainty surrounding potential US tariff hikes.
On March 12, the Korea Automobile & Mobility Industry Association stated, “We sincerely welcome the passage of the US Investment Special Act by the National Assembly,” and added, “We deeply appreciate the bipartisan cooperation shown by the National Assembly in handling the bill to help the automotive industry, a key national strategic sector, overcome this crisis, as well as the government authorities for their proactive trade negotiations.”
On this day, the National Assembly passed the “Special Act for Strategic Investment Management between Korea and the United States” (US Investment Special Act), which is a follow-up measure to the Korea-US tariff negotiations, with bipartisan agreement.
It has been just three and a half months since the Democratic Party of Korea proposed the special act, following the signing of a memorandum of understanding (MOU) on strategic investments totaling $350 billion between Korea and the United States in November last year. The special act stipulates the establishment of the Korea-US Strategic Investment Corporation to carry out up to $350 billion in investments in the United States, in accordance with the Korea-US MOU.
The association commented, “The automotive industry has been plagued by concerns that if the US export tariff were to rise again from 15% to 25%, it would erode export competitiveness, reduce domestic production volumes, and shrink the entire ecosystem of the automotive industry.” The statement continued, “With the passage of the special act, our companies will see the uncertainty surrounding tariff hikes in the United States, our largest market, resolved, and will be able to compete on equal footing with rival countries.”
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The association further stated, “This will not only help create a stable business environment across the automotive industry, including both vehicle manufacturers and parts suppliers, but also significantly contribute to expanding investments.” It added, “We will continue to invest in technological innovation, productivity improvements, and the transition to future mobility, so that Korea can reemerge as a global leader in mobility.”
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