USD 200 Billion Pipeline for U.S. Investment Opens... Hanmi Strategic Special Law Enforcement Decree Approved

Criteria for 'Commercial Reasonableness' Codified
U.S. Treasury Bond Yield Plus Premium to Be Applied for Principal and Interest Calculations

The government has established the legal and institutional framework to fully support the Korea-U.S. strategic investment initiative, which involves a total of USD 200 billion (approximately KRW 306 trillion) as agreed with the United States. The government has clearly defined the requirements for 'commercial reasonableness,' a key standard that will determine the success of these investments, and has decided to officially launch the 'Hanmi Strategic Investment Corporation,' a dedicated agency with a statutory capital of KRW 2 trillion, on June 18.

Hanmi Strategic Investment Corporation Recruitment Website. Hanmi Strategic Investment Corporation.

On June 9, the government deliberated and approved the 'Enforcement Decree for the Operation and Management of Strategic Investment between the Republic of Korea and the United States of America' during a Cabinet meeting. This enforcement decree specifies items delegated by the Presidential Decree of the special law, which was promulgated on March 17, and will go into effect simultaneously with the special law on June 18.

The core of the enforcement decree is the codification of the criteria for 'commercial reasonableness,' which serves as the benchmark for determining whether to proceed with U.S.-bound investment projects. According to the decree, an investment is considered commercially reasonable if the total expected returns distributed to Korea over the anticipated lifespan of each project are sufficient to cover both the principal and interest of the investment. The interest rate used to calculate principal and interest will be the yield on a 20-year U.S. Treasury bond at the time of investment, plus an additional premium agreed upon by Korea and the United States. In addition to the Ministry of Economy and Finance and the Ministry of Trade, Industry and Energy, the steering committee—the investment control tower, chaired by the Deputy Prime Minister and Minister of Economy and Finance—will now also include the Ministry of Foreign Affairs, the Ministry of Planning and Budget, and the Financial Services Commission as standing members.

The 'Hanmi Strategic Investment Corporation,' which will serve as the operational arm for U.S.-bound investments, will be established and officially launched on June 18, the date the law takes effect, with its incorporation registered on the same day. The statutory capital of KRW 2 trillion will be paid in cash by the government in installments over several years. The government stated, "Specific investment projects in the United States will be finalized only after a transparent process stipulated by law, including a thorough review by the project management committee, final deliberation by the steering committee, reporting to the National Assembly, and detailed discussions with the U.S. government, all of which will follow immediately after the special law goes into effect."

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