Business Groups Urge Swift Passage of US Investment Bill Amid Political Gridlock

As economic uncertainty grows amid US tariff risks and the US-Iran conflict, Korea's business community has called for swift passage of the "Special Act for Korea-US Strategic Investment Management" (US Investment Special Act).

Six major business groups including the Korea Enterprises Federation issued an appeal on the 3rd, stating: "The longer the passage of the US Investment Special Act is delayed, the weaker our negotiating power with the US becomes, and the harder it will be to realize the benefits of Korea-US economic cooperation." They pleaded for expedited processing of the bill.

The business community expressed concern that if the 25% tariff mentioned by US President Donald Trump becomes reality while the bill's passage is delayed, not only exports but the global competitiveness of Korea's key industries could sharply deteriorate.

Business groups fear the US administration may use other legal means to impose stronger selective tariffs, circumventing constraints under the existing International Emergency Economic Powers Act (IEEPA). Since President Trump has signaled tariff increases citing our National Assembly's sluggish handling, delays in passing the US Investment Special Act could result in high tariffs specifically targeting Korean flagship industries such as semiconductors and automobiles.

Despite these circumstances, politicians are unable to accelerate passage of the US Investment Special Act, preoccupied with political disputes over contentious bills including the so-called "three judicial reform bills" and the "Administrative Integration Special Act."

When the Democratic Party of Korea expressed opposition to the Daegu-North Gyeongsang integration bill, the People Power Party launched street protests including a march from the National Assembly to Cheongwadae. In response, Democratic Party floor leader Han Byung-do mocked the move, saying it was "wagging their tails to show the extreme-right asphalt forces chanting 'Yoon Again' how hard they are fighting."

The ruling and opposition parties must pass the US Investment Special Act without delay. Otherwise, it will be difficult to establish a foundation for Korean companies to maintain global competitiveness and strengthen the Korea-US economic and security alliance amid growing trade uncertainty.

Both parties should heed the desperate appeals from businesses who are "earnestly requesting swift passage of the US Investment Special Act to avoid further exposure to tariff uncertainty."

As the US Investment Special Act is a critical matter directly tied to national interests, the ruling and opposition parties should set aside their disputes over the Administrative Integration Special Act and ensure passage before the special committee deadline of the 9th.