Korea to Proceed with $350 Billion U.S. Investment Despite Tariff Ruling

The presidential office held emergency weekend meetings to discuss South Korea's response following the U.S. Supreme Court ruling that struck down reciprocal tariffs, reaffirming plans to proceed with $350 billion in investments to the United States as scheduled.

"The situation has not fundamentally changed," a senior presidential official said, dismissing calls from some quarters to renegotiate the Korea-U.S. trade agreement.

The presidential office convened a meeting Sunday afternoon with the ruling Democratic Party and government officials to review trade issues and discuss countermeasures for Korea-U.S. tariff negotiations following the Supreme Court ruling. A day earlier, National Security Advisor Sung-rak Wi and Policy Chief Yong-beom Kim chaired an interagency meeting on U.S. trade matters.

The back-to-back meetings came as trade uncertainty intensified after President Donald Trump announced a 10% global tariff under Section 122 of the Trade Act immediately following the court ruling, then raised it to 15% the next day.

Both meetings broadly covered the implications of the reciprocal tariff ruling and its impact on Korea. Given that the measure affects all countries and uncertainty remains high within the United States, officials agreed to "closely monitor additional U.S. measures and developments" rather than determine specific actions.

The Democratic Party said in a written briefing after Sunday's meeting that "the party, government, and presidential office agreed that swift passage of the Special Act on U.S. Investment serves Korea's national interest best, and will make every effort to pass it by March 9 as agreed between ruling and opposition parties."

The decision to proceed with U.S. investments as planned comes despite some arguing that renegotiation is needed now that the legal basis for reciprocal tariffs has been invalidated. Officials noted that only reciprocal tariffs were struck down while product-specific tariffs on automobiles and other goods remain in effect, and attempting to renegotiate the investment agreement could result in greater costs. They also considered that the Korea-U.S. trade agreement involves not just tariffs but security and alliance relations between the two countries.

Prime Minister Min-seok Kim said Saturday at a policy briefing in Pohang, North Gyeongsang Province, "The Korea-U.S. tariff negotiation is not simply a legal matter but a political and economic negotiation based on both sides' trade interests. We will honor our commitments while taking a comprehensive view of the situation."

Presidential spokesperson Yoo-jung Kang said officials "reviewed the progress of the Special Act on U.S. Investment legislation and agreed to proceed with the legislative process without disruption."