Democratic Party Targets Late‑February Vote on $350 Billion U.S. Investment Bill Amid 25% Tariff Threat
Updated (7 articles)
DP Schedules Extraordinary Session for Bill Vote The ruling Democratic Party will move the special investment bill to an extraordinary National Assembly session slated for late February through early March, with a plenary vote expected between those dates. Rep. Han Jeoung‑ae, chair of the policy committee, confirmed the timetable and emphasized the need to meet the United States’ investment commitments. The bill’s passage is positioned as essential to avoid further trade friction [1].
Bill Originated in November to Fulfill $350 Billion Pledge Introduced in November 2025, the draft law outlines procedures for South Korea’s $350 billion investment package promised at the October summit between President Lee Jae Myung and U.S. President Donald Trump. It creates a “strategic investment fund” and sets out memoranda of understanding to channel the funds into designated sectors. All sources agree the legislation remains pending in a parliamentary committee before reaching the plenary [1][2][3][4][5][6][7].
U.S. Threatens 25% Tariff Over Legislative Delay President Donald Trump announced on Jan. 27 that reciprocal tariffs on South Korean goods and automobiles will rise from 15% to 25% if the National Assembly does not expedite the bill. He framed the increase as a direct response to the “slow” legislative process, a stance echoed in every article. The tariff threat has intensified pressure on Seoul to accelerate parliamentary action [1][2][3][4][5][6][7].
Seoul Engages U.S. Officials to Defuse Dispute Industry Minister Kim Jung‑kwan cut short a Canada trip to meet U.S. Commerce Secretary Howard Lutnick in Washington, while Trade Minister Yeo Han‑koo scheduled talks with U.S. Trade Representative Jamieson Greer. Senior presidential aide Kim Yong‑beom pledged a detailed explanation of the bill’s progress to Washington, aiming to reassure the United States of Seoul’s commitment. These diplomatic overtures are intended to mitigate the tariff risk and smooth the bill’s passage [1][2][3][4][5][6][7].
Opposition Demands Trade‑Agreement Ratification First People Power Party floor leader Song Eon‑seog and trade‑committee head Rep. Lee Chul‑gyu argued that formal parliamentary ratification of the broader trade pact should precede the investment bill, warning that bypassing it could undermine South Korea’s negotiating position. They highlighted the typical six‑to‑seven‑month legislative timeline and urged continued dialogue with U.S. officials. The opposition’s stance underscores domestic political friction over the preferred legislative route [4][5][6][7].
Sources
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1.
Yonhap: DP Aims to Pass U.S. Investment Bill by Late February, Early March: Details the DP’s plan for an extraordinary session, the $350 billion bill’s contents, and Trump’s 25% tariff warning, noting Minister Kim’s Washington talks .
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2.
Yonhap: South Korea to Detail Investment Bill Amid U.S. Tariff Threat: Senior aide Kim Yong‑beom promises a detailed explanation to the U.S., outlines accelerated parliamentary push for a February vote, and lists upcoming high‑level talks .
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3.
Yonhap: South Korea to Detail Investment Bill Amid U.S. Tariff Threats: Mirrors article 2 with emphasis on pre‑implementation project reviews and diplomatic meetings to reassure Washington .
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4.
Yonhap: DP to Push Special Investment Bill in February After U.S. Tariff Threat: Highlights DP’s February deliberation schedule, bipartisan outreach, and opposition criticism favoring trade‑agreement ratification .
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5.
Yonhap: DP seeks February debate on U.S. trade investment bill after Trump’s tariff threat: Reiterates February debate plan, opposition’s demand for ratification, and timeline concerns from PPP officials .
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6.
Yonhap: Seoul to Consult U.S. on Investment Bill After Trump Tariff Announcement: Reports Ministry of Economy and Finance’s coordination with the U.S., finance‑minister meeting with parliamentary committee chair, and emergency inter‑agency response .
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7.
Yonhap: Seoul to consult U.S. on investment bill after Trump’s tariff hike announcement: Provides similar details to article 6, adding Ministry statements on ongoing dialogue and the bill’s role in mitigating tariff impacts .
Timeline
Oct 2025 – South Korea and the United States finalize a bilateral trade agreement that includes a US$350 billion investment pledge and reciprocal tariff reductions, laying the foundation for the later investment legislation [4][5].
Nov 2025 – The ruling Democratic Party submits a special investment bill to the National Assembly to operationalize the US$350 billion pledge and fulfill the trade‑deal commitments [6][7].
Jan 27, 2026 – President Donald Trump posts on social media that reciprocal tariffs on South Korean goods will rise from 15 % to 25 % because the Korean legislature has not completed the domestic steps required by the trade pact [6][7]; the Ministry of Economy and Finance says, “We are currently working to gauge the intentions of the U.S. side,” and Finance Minister Choi meets the parliamentary finance‑committee chair to seek cooperation on the bill [7]; Industry Minister Kim Jung‑kwan prepares to fly from Canada to Washington for talks with U.S. Commerce Secretary Howard Lutnick [6].
Jan 27, 2026 – The Democratic Party announces it will open parliamentary deliberations on the special investment bill in February, targeting a full vote by the end of the month after Trump’s tariff threat [4][5]; Rep. Jung Tae‑ho says the government asks the bill be reviewed and passed by late February [5]; DP floor spokesperson Kim Hyun‑jung stresses the need to examine financing and commercial viability before passage [5]; PPP floor leader Song Eon‑seog criticizes the focus on the bill over formal ratification of the trade pact [5].
Jan 27, 2026 – PPP Rep. Lee Chul‑gyu warns that even an expedited legislative process normally takes six to seven months, urging active dialogue with the United States to avoid the tariff hike [4].
Jan 28, 2026 – Senior presidential aide Kim Yong‑beom says the government will detail the National Assembly’s work on the bill to calm Washington, noting that Trump’s tariff threat “appears 100 percent from the delayed legislation” [2]; he pledges accelerated communication with lawmakers to secure committee clearance and a plenary vote as early as February [2]; he highlights upcoming high‑level talks—Industry Minister Kim with Commerce Secretary Lutnick and Trade Minister Yeo Han‑koo with U.S. Trade Representative Jamieson Greer—to reassure the United States [2]; he adds that pre‑implementation reviews of prospective investment projects will begin before the bill passes [2].
Feb 1, 2026 – The Democratic Party pledges to push the National Assembly to approve the special investment bill by late February or early March, scheduling an extraordinary session for a plenary vote [1]; the draft law outlines procedures for the US$350 billion investment and creates a “strategic investment fund” [1]; Rep. Han Jeoung‑ae criticizes the U.S. stance as “deeply regrettable,” urging respect for South Korea’s parliamentary process [1]; Industry Minister Kim meets U.S. Commerce Secretary Howard Lutnick in Washington, saying the talks clear “unnecessary misunderstandings” [1]; President Trump reiterates his threat to raise tariffs to 25 % if Seoul delays the agreed‑upon investment commitments [1].