Korea Eases U.S. Investment Bill, Shifts From Approval to Reporting

Ruling and opposition floor managers on the National Assembly's special committee for the U.S. investment bill have reached broad agreement to ease the "prior parliamentary approval" requirement to a "reporting" procedure for investment decisions.

The change aims to accelerate and add flexibility to investment decisions. If the bill passes in the plenary session on May 12, it is expected to boost momentum for Korean investment in the United States.

On May 4, the special committee held a plenary session followed by a bill review subcommittee meeting to begin deliberations on the special law. The committee plans to continue meetings through May 5 to finalize a unified proposal covering parliamentary oversight levels, establishment of a separate investment corporation, scope of information disclosure, investment risk management measures, and the funding structure of the Korea-U.S. Strategic Investment Fund.

Rep. Park Soo-young of the People Power Party, the opposition floor manager on the committee, said, "We have reached agreement on a significant portion. Progress has been faster than we worried, so there should be no problem completing discussions by the committee's May 9 deadline."

Negotiations accelerated after ruling and opposition floor managers coordinated in advance on key issues: prior parliamentary approval, establishment of a Korea-U.S. Strategic Investment Corporation, and risk management framework.

Rep. Jung Tae-ho of the Democratic Party of Korea, the ruling party floor manager, said, "We have reached consensus on a significant portion." Rep. Park added, "We have clearly organized the issues and laid the groundwork for agreement."

Both parties formed consensus on converting the requirement for prior parliamentary approval on all investments to "post-hoc reporting."

Rep. Park explained, "If prior approval becomes mandatory, it could slow investment execution. We agreed that switching to a reporting system is more realistic."

The control tower for U.S. investment will be a newly established "Korea-U.S. Strategic Investment Corporation" separate from the existing Korea Investment Corporation (KIC). However, considering concerns about organizational bloat, the government raised objections to minimizing dedicated units within the corporation and agreed to review the matter.

The risk management framework will also be strengthened. A "Risk Management Committee" will be established within the investment corporation, separate from the Ministry of Trade, Industry and Energy's Project Management Committee and the Ministry of Economy and Finance's Operations Committee, creating a "triple safety net." Both parties also agreed on measures to expand information disclosure to enhance investment transparency.

The parties plan to pass the bill in the special committee on May 9 and submit it to the plenary session for approval on May 12. As discussions on the special law progress, parliamentary trade diplomacy with the United States is also gaining momentum.

The Korea-U.S. Parliamentary League, comprising lawmakers from both parties, will visit the United States on May 23 to explain Korea's commitment to U.S. investment and address recent trade issues including the "Coupang situation" and the online platform regulation controversy.

The visit comes as President Donald Trump has signaled possible additional tariff increases and a decision by the U.S. Trade Representative (USTR) on whether to launch a Section 301 investigation is imminent.

Rep. Cho Kyung-tae of the People Power Party, chairman of the league, said, "We will meet key figures in the U.S. Congress and administration to directly explain the trade issues."

Yeo Han-koo, Deputy Minister for Trade Negotiations at the Ministry of Trade, Industry and Energy, said, "The National Assembly's role is important in stabilizing Korea-U.S. trade relations. We need to accurately explain the intent of domestic legislation to reduce misunderstandings."

The delegation is particularly focused on the USTR's decision on May 8 regarding whether to launch a Section 301 investigation. In January, Coupang's U.S. investors requested a USTR investigation, claiming the Korean government's probe into personal data breaches constituted "discriminatory measures against a U.S. company." The Korean government has informed the U.S. side that Coupang's domestic personal data breach affected 30 million records.

The delegation also plans to actively address controversies surrounding the Online Platform Act.

Rep. Kim Young-bae of the Democratic Party of Korea said, "There are aspects where the legislative intent to establish fair trade order and protect small and medium-sized businesses has been distorted in transmission. We will explain the accurate content to U.S. lawmakers."