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

Updated (105 articles)
  • A person holds a smartphone displaying the logo of Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, with the company’s logo visible on a screen in the background, on July 19, 2025, in Chongqing, China.
    A person holds a smartphone displaying the logo of Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, with the company’s logo visible on a screen in the background, on July 19, 2025, in Chongqing, China.
    Image: Newsweek
    A person holds a smartphone displaying the logo of Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, with the company’s logo visible on a screen in the background, on July 19, 2025, in Chongqing, China. Source Full size
  • 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
  • Jeong Yeon-doo (R), vice minister for diplomatic strategy and intelligence, and James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul, shake hands during their meeting in the capital on Feb. 19, 2026, in this photo provided by the foreign ministry. (PHOTO NOT FOR SALE) (Yonhap)
    Jeong Yeon-doo (R), vice minister for diplomatic strategy and intelligence, and James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul, shake hands during their meeting in the capital on Feb. 19, 2026, in this photo provided by the foreign ministry. (PHOTO NOT FOR SALE) (Yonhap)
    Image: Yonhap
    Jeong Yeon-doo (R), vice minister for diplomatic strategy and intelligence, and James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul, shake hands during their meeting in the capital on Feb. 19, 2026, in this photo provided by the foreign 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
  • A person holds a smartphone displaying the logo of Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, with the company’s logo visible on a screen in the background, on July 19, 2025, in Chongqing, China.
    A person holds a smartphone displaying the logo of Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, with the company’s logo visible on a screen in the background, on July 19, 2025, in Chongqing, China.
    Image: Newsweek
    A person holds a smartphone displaying the logo of Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, with the company’s logo visible on a screen in the background, on July 19, 2025, in Chongqing, China. 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
  • Jeong Yeon-doo (R), vice minister for diplomatic strategy and intelligence, and James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul, shake hands during their meeting in the capital on Feb. 19, 2026, in this photo provided by the foreign ministry. (PHOTO NOT FOR SALE) (Yonhap)
    Jeong Yeon-doo (R), vice minister for diplomatic strategy and intelligence, and James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul, shake hands during their meeting in the capital on Feb. 19, 2026, in this photo provided by the foreign ministry. (PHOTO NOT FOR SALE) (Yonhap)
    Image: Yonhap
    Jeong Yeon-doo (R), vice minister for diplomatic strategy and intelligence, and James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul, shake hands during their meeting in the capital on Feb. 19, 2026, in this photo provided by the foreign ministry. (PHOTO NOT FOR SALE) (Yonhap) Source Full size
  • 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

Supreme Court blocks Trump’s emergency tariff authority The U.S. Supreme Court on 21 Feb 2026 upheld a lower‑court ruling that the 1977 International Emergency Economic Powers Act does not justify the “reciprocal” 25 % tariffs imposed on South Korean steel, aluminum and autos [3]. The decision nullified the tariffs announced by President Trump on 27 Jan 2026 and forced the administration to issue a new 10 % global tariff proclamation [3]. This legal setback marks the most recent reversal in the trade dispute that began with Trump’s 25 % duties in early 2025 [3].

South Korean government vows close watch on U.S. moves Following the court ruling, the presidential office (Cheong Wa Dae) announced it will monitor any further U.S. policy shifts that could affect bilateral trade [1]. The statement reflects concern that Washington might replace the blocked tariffs with alternative measures [1]. Officials emphasized that monitoring will be continuous as the trade environment remains volatile [1].

National Assembly proceeds with $350 billion investment bill On 21 Feb 2026, rival parties in the National Assembly confirmed they will continue processing the special legislation that obliges South Korea to invest $350 billion in the United States, regardless of the tariff ruling [2]. People Power Party chair Kim Sang‑hoon asserted the court decision does not invalidate the investment commitment, and a Democratic Party senior official echoed the intent to keep the schedule unchanged [2]. Only the minor Jinbo Party called for an immediate halt, highlighting a rare dissenting voice [2].

Legislative timetable advances toward March vote The Assembly’s special committee, created after the February trade‑deal resolution, met first on 12 Feb 2026, set a hearing for the following Tuesday, and scheduled a plenary vote for 5 Mar 2026, with the committee remaining active until 9 Mar 2026 [2]. These dates indicate that the investment bill is on track for passage before the end of the month [2]. The timeline underscores the government’s determination to meet the pledge despite ongoing tariff uncertainties [2].

Diplomatic engagements reinforce investment review Vice minister Jeong Yeon‑doo met acting U.S. ambassador James Heller on 19 Feb 2026 to discuss implementation of the trade deal and pledged investment projects, agreeing to enhance communication [6]. A separate delegation led by Vice Trade Minister Park Jung‑sung arrived in Washington on 19 Feb 2026 to evaluate the commercial viability of prospective projects, especially in energy and power infrastructure [7]. Both meetings occurred after the Supreme Court decision and amid President Trump’s pressure on Korea following Japan’s $550 billion investment announcement [7].

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Timeline

Dec 1, 2025 – The United States reduces the tariff on South Korean automobiles from 25 % to 15 %, applying retroactively to Nov 1 and linking the cut to Seoul’s pledge to invest $350 billion in the United States, as confirmed by Commerce Secretary Howard Lutnick [30].

Dec 3, 2025 – A Federal Register notice implements the 15 % duty on Korean autos, lumber and aircraft parts retroactive to Nov 1, formalising the tariff reduction that was part of the Oct 29 Korea‑U.S. Strategic Trade and Investment Deal [28][29][27][26].

Dec 10, 2025 – Senior Economic Dialogue in Washington reviews the Oct 2025 trade agreement, noting the $350 billion Korean investment commitment that underpins the 15 % reciprocal tariff and discussing joint measures on critical minerals and supply‑chain security [25].

Jan 15, 2026 – The United States cuts tariffs on Taiwanese goods to 15 % after Taiwan pledges $250 billion in direct investment, with TSMC accelerating its Arizona plant; Commerce Secretary Howard Lutnick says the deal helps U.S. “self‑sufficiency” in chips [2][24].

Jan 18, 2026 – U.S. tariff pressure resurfaces on Korea’s semiconductor sector, targeting Samsung and SK Hynix, while Taiwan’s zero‑tariff pledge creates a competitive head‑wind for Korean chip exporters [23].

Jan 23, 2026 – South Korean Prime Minister Kim Min‑seok meets U.S. Vice President JD Vance at the White House, discussing deepening bilateral ties and “anticipated U.S. chip tariffs” as part of Seoul’s effort to strengthen the alliance [22].

Jan 27, 2026 – President Donald Trump announces on Truth Social that reciprocal tariffs on South Korean autos, lumber and pharmaceuticals will rise from 15 % to 25 % because the Korean legislature “has not lived up” to the trade deal, and the Democratic Party vows to launch a February parliamentary debate on the special $350 billion investment bill [18][16][17][21][20][19][15].

Jan 28, 2026 – Treasury Secretary Scott Bessent states the United States has no trade agreement with South Korea until the National Assembly ratifies it, while Industry Minister Kim Jung‑kwan departs Canada for Washington to meet Commerce Secretary Lutnick [13][14].

Jan 29, 2026 – Foreign Minister Cho Hyun tells a Kwanhun Club panel that the tariff dispute is an “implementation issue,” not a renegotiation, warning that a weakening won could delay the $350 billion investment rollout [12].

Jan 30, 2026 – South Korea’s Industry Minister Kim Jung‑kwan and U.S. Commerce Secretary Howard Lutnick finish two days of talks in Washington without an agreement; Trump reiterates the threat of a 25 % tariff increase pending Seoul’s legislative progress [11].

Feb 4, 2026 – In Washington, South Korean Foreign Minister Cho Hyun and U.S. Secretary of State Marco Rubio reaffirm cooperation on civil nuclear power, nuclear‑powered submarines and shipbuilding, and announce an upcoming Critical Minerals Ministerial to diversify supply chains [10].

Feb 4, 2026 – The Korean Finance, Economy, Planning and Budget Committee schedules an interpellation before the Lunar New Year to question the status of the special U.S. investment bill and tariff negotiations, with Finance Minister Koo Yun‑cheol briefing lawmakers [9].

Feb 5, 2026 – Editorials report that U.S. pressure to raise Korean tariffs to 25 % persists, high‑level video talks between Trade Minister Kim Jung‑kwan and Commerce Secretary Lutnick end without progress, and both sides agree to fast‑track the special investment bill within a month [7][8].

Feb 20, 2026 – U.S. import data show Taiwan’s shipments to the United States surpass China’s for the first time in decades; the new Taiwan‑U.S. pact caps tariffs at 15 % and secures > $250 billion in Taiwanese investment, while President Trump announces an April visit to Beijing to discuss modest trade concessions [4].

Feb 21, 2026 – Despite a recent court ruling on Trump’s tariff threat, South Korea’s National Assembly confirms it will proceed with the $350 billion investment bill, sets a hearing for the following Tuesday (Feb 27) and a plenary vote for Mar 5, keeping the legislative timetable intact [6].

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