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South Korea Pushes $350 Billion U.S. Investment Bill After Supreme Court Blocks Trump Tariffs

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  • South Korea's Industry Minister Kim Jung-kwan (3rd from R) and U.S. Commerce Secretary Howard Lutnick (2nd from L) attend talks on renewed trade tensions between the two countries at the Department of Commerce in Washington on Jan. 29, 2026, in this file photo provided by the South Korean ministry. (PHOTO NOT FOR SALE) (Yonhap)
    South Korea's Industry Minister Kim Jung-kwan (3rd from R) and U.S. Commerce Secretary Howard Lutnick (2nd from L) attend talks on renewed trade tensions between the two countries at the Department of Commerce in Washington on Jan. 29, 2026, in this file photo provided by the South Korean ministry. (PHOTO NOT FOR SALE) (Yonhap)
    Image: Yonhap
    South Korea's Industry Minister Kim Jung-kwan (3rd from R) and U.S. Commerce Secretary Howard Lutnick (2nd from L) attend talks on renewed trade tensions between the two countries at the Department of Commerce in Washington on Jan. 29, 2026, in this file photo provided by the South Korean ministry. (PHOTO NOT FOR SALE) (Yonhap) Source Full size
  • Government officials and lawmakers attend the first meeting of the parliamentary special committee to fast-track legislation on South Korea's $350 billion investment pledge to the United States at the National Assembly, in this file photo taken on Feb. 12, 2026. (Yonhap)
    Government officials and lawmakers attend the first meeting of the parliamentary special committee to fast-track legislation on South Korea's $350 billion investment pledge to the United States at the National Assembly, in this file photo taken on Feb. 12, 2026. (Yonhap)
    Image: Yonhap
    Government officials and lawmakers attend the first meeting of the parliamentary special committee to fast-track legislation on South Korea's $350 billion investment pledge to the United States at the National Assembly, in this file photo taken on Feb. 12, 2026. (Yonhap) Source Full size
  • Government officials and lawmakers attend the first meeting of the parliamentary special committee to fast-track legislation on South Korea's $350 billion investment pledge to the United States at the National Assembly, in this file photo taken on Feb. 12, 2026. (Yonhap)
    Government officials and lawmakers attend the first meeting of the parliamentary special committee to fast-track legislation on South Korea's $350 billion investment pledge to the United States at the National Assembly, in this file photo taken on Feb. 12, 2026. (Yonhap)
    Image: Yonhap
    Government officials and lawmakers attend the first meeting of the parliamentary special committee to fast-track legislation on South Korea's $350 billion investment pledge to the United States at the National Assembly, in this file photo taken on Feb. 12, 2026. (Yonhap) Source Full size

Supreme Court Blocks Trump’s Emergency Tariff Authority On Feb 21 2026 the U.S. Supreme Court upheld a lower‑court ruling that the 1977 International Emergency Economic Powers Act cannot justify the “reciprocal” 25% tariffs imposed on South Korea and other allies, effectively nullifying President Donald Trump’s emergency tariff proclamation. The decision erased the 25% duties announced on Jan 27 2026 and removed the legal basis for the broader tariff strategy. In retaliation, Trump signed a new proclamation imposing a 10% worldwide tariff and warned of additional measures to replace the struck‑down duties [2].

National Assembly Advances $350 Billion Investment Bill Despite the court decision, South Korea’s National Assembly will keep the special committee’s timetable, with a hearing slated for Feb 26 and a plenary vote on March 5. People Power Party lawmaker Kim Sang‑hoon said the ruling “does not seem to constitute a requirement that can cancel South Korea's investments to the United States,” and a senior Democratic Party official confirmed no schedule change. The minor Jinbo Party called for an immediate halt, but the two major parties pledged to press forward unchanged [1].

Seoul Sends Working‑Level Team to Discuss Investment Projects On Feb 19 Vice Trade Minister Park Jung‑sung led a delegation to Washington to meet U.S. Commerce Department officials and assess the commercial rationality of Korean projects under the $350 billion pledge. Delegates emphasized energy development and power‑infrastructure as likely sectors for investment. The mission followed President Trump’s announcement of Japan’s $550 billion investment plan, which he used to pressure Korea to accelerate its own commitments [4].

Korean Press Highlights Tariff Ruling and Party Turmoil Yonhap roundup of Feb 21 front‑pages showed Hankook Ilbo and Korea Economic Daily featuring the Supreme Court decision as a headline story, while the Kookmin Daily and Donga Ilbo reported People Power Party chairman Jang Suk‑yeol’s refusal to cut ties with ex‑President Yoon Suk‑yeol. The Chosun Ilbo highlighted criticism of three Democratic Party laws as undermining legal foundations. These reports illustrate domestic political tension concurrent with the legislative push on the investment bill [3].

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Timeline

July 2025 – The United States and South Korea sign a trade agreement that caps tariffs at 10 % and grants preferential rates on Korean automobiles, establishing a framework for a $350 billion investment pledge and reciprocal tariff reductions. [2][26]

Oct 29 2025 – Presidents Donald Trump and Lee Jae‑Myung finalize the Korea‑U.S. Strategic Trade and Investment Deal at a summit in Gyeongju, formalizing the $350 billion investment commitment and authorizing the United States to lower tariffs on Korean autos, lumber and aircraft. [30][27]

Nov 13 2025 – A joint fact sheet releases U.S. approval for South Korea to build nuclear‑powered attack submarines and supports Seoul’s bid for civil uranium enrichment, linking these security concessions to the trade pact. [1][29]

Nov 26 2025 – South Korea’s National Assembly passes a special bill that enacts the $350 billion investment package, satisfying a key condition of the October deal and enabling the United States to apply the agreed‑upon tariff cuts. [29][30]

Dec 1 2025 – U.S. Commerce Secretary Howard Lutnick announces a retroactive 15 % duty on Korean automobiles effective Nov 1, reducing the previous 25 % rate in exchange for Seoul’s investment pledge, and confirms parallel cuts on aircraft parts and lumber. [30][27]

Dec 3 2025 – The Federal Register publishes the official notice implementing the 15 % tariff on Korean autos, timber and aircraft components, cementing the reciprocal tariff level and marking the first major U.S. tariff reduction under the new strategic partnership. [29][28]

Jan 26 2026 – President Donald Trump posts on Truth Social that the United States will raise reciprocal tariffs and auto duties on South Korean goods from 15 % to 25 % because the Korean National Assembly has not ratified the trade framework, invoking an economic emergency to bypass Congress. He declares, “South Korea has not lived up to the trade deal reached last year.” [1][22][23]

Jan 27 2026 – A White House official tells Yonhap that South Korea has made “no progress” on its trade‑deal obligations, framing the tariff hike as a response to legislative delays; the South Korean presidential office replies that it has received no formal U.S. notice and convenes an emergency inter‑agency meeting led by policy chief Kim Yong‑beom. [18][25]

Jan 27 2026 – The ruling Democratic Party announces it will deliberate the special investment bill in February, aiming to pass the legislation before the month’s end to avert the 25 % tariff threat. [21][20]

Jan 28 2026 – Industry Minister Kim Jung‑kwan lands at Dulles International Airport and prepares to meet U.S. Commerce Secretary Howard Lutnick; Korean car stocks dip 6 % after Trump’s announcement but later recover as the Kospi closes 2.7 % higher. [16][17][4]

Jan 29 2026 – Trade Minister Yeo Han‑koo departs Incheon for Washington to meet USTR Jamieson Greer, pledging to honor the existing tariff pact and seeking a “mutually beneficial” resolution; President Trump reiterates that “we will work something out” while maintaining the 25 % threat. [14][15]

Jan 30 2026 – Kim Jung‑kwan holds a second day of talks with Commerce Secretary Howard Lutnick in Washington; both sides acknowledge extensive discussion but leave without an agreement, agreeing to continue negotiations via video link. [12][13][11]

Feb 2 2026 – Prime Minister Kim Min‑seok reports that a newly established U.S.–Korea hotline, created with Vice President JD Vance, enables rapid exchange of positions on the tariff dispute and helps both governments clarify intentions. [10]

Feb 3 2026 – Foreign Minister Cho Hyun arrives in Washington, meets Secretary of State Marco Rubio, and attends the inaugural Critical Minerals Ministerial, stressing that Seoul “remains dedicated to fulfilling the trade agreement” and urging U.S. agencies to coordinate on nuclear‑submarine and uranium‑enrichment deals. [9][6]

Feb 4 2026 – Trade Minister Yeo Han‑koo meets USTR Jamieson Greer and about twenty members of Congress, warning that reinstating higher tariffs would “have a grave impact on the economies and key industries of both South Korea and the United States,” and announces intensive consultations before returning to Seoul on Thursday. [8]

Feb 4 2026 – The Finance, Economy, Planning and Budget Committee schedules an interpellation session before the Lunar New Year (Feb 14) to question the status of the special U.S. investment bill and ongoing tariff talks, with Finance Minister Koo Yun‑cheol urging swift passage. [7]

Feb 5 2026 – In Washington, Cho Hyun tells Secretary Rubio that South Korea is “not intentionally slowing” the parliamentary process needed for the investment bill, while Rubio warns that U.S. domestic sentiment is “unfavorable” toward Seoul’s progress on trade‑related commitments. [6][9]

Feb 6 2026 – Cho Hyun rejects claims that South Korea deliberately delays trade‑deal implementation, emphasizing that the investment bill remains pending but not obstructed, as the United States threatens to raise tariffs to 25 % if the bill stalls further. [6]

Feb 14 2026 (anticipated) – The interpellation session is expected to pressure the National Assembly to approve the special investment bill before the Lunar New Year, a step analysts deem crucial to averting the 25 % tariff increase and satisfying the pending Supreme Court case on presidential tariff authority. [7][23]

Late Feb 2026 (anticipated) – The Democratic Party aims to merge five separate investment‑bill proposals into a single measure and secure bipartisan support to pass the $350 billion investment legislation by the end of February, meeting the U.S. demand for concrete progress. [21][5]

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