Seoul: The South Korean parliament has endorsed a significant $350 billion investment initiative aimed at bolstering Seoul's trade relations with the United States. This development marks a crucial step in the bilateral trade agreement between the two nations.

According to Anadolu Agency, the measure garnered robust support from both the ruling Democratic Party (DP) and the main opposition People Power Party (PPP) during a plenary National Assembly vote. Following the bill's approval, South Korean President Lee Jae Myung swiftly announced plans to implement the new law, emphasizing its importance for economic development and national security.

President Lee expressed his commitment to ensuring that the strategic investment enhances economic growth and strengthens supply chain stability. He shared his intentions on the social media platform X, highlighting the significance of the investment for both South Korea and the United States.

The legislation's passage follows its introduction by the Democratic Party in November, specifically designed to facilitate Seoul's investment plans in the US. The initiative includes several memorandums of understanding and the establishment of a 'strategic investment fund' linked to the $350 billion commitment.

The investment package focuses on key areas, with $150 billion allocated for shipbuilding collaboration and an additional $200 billion directed towards projects in strategic industries. This move comes as a response to US President Donald Trump's warning of potential reciprocal tariff increases on Korean exports, which could rise from 15% to 25% in January if legislative procedures were delayed.

To expedite the process, the DP and PPP formed a special committee, resulting in an agreement to pass the bill after extensive discussions. This strategic investment is poised to enhance trade relations and economic cooperation between South Korea and the United States.