Seoul, November 25, 2025 – South Korea’s ruling Democratic Party is set to propose legislation this week that will enable the country to invest in the United States under a new trade deal aimed at reducing tariffs on South Korean exports. The proposed bill, scheduled for introduction on November 26, is part of a broader agreement between the two nations to enhance trade cooperation and investment.

The details of the bill are currently limited, but the move follows the announcement on November 14, 2025, of the implementation plan for a deal reached by the presidents of South Korea and the U.S. in late October. The agreement focuses on lowering U.S. import duties on South Korean goods from 25% to 15%, providing significant relief for exporters.

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Overview of the South Korea-U.S. Tariff Deal

Under the agreement, South Korea committed to invest $350 billion in strategic industries in the United States, including sectors critical for technology, energy, and advanced manufacturing. In exchange, the U.S. agreed to reduce tariffs on South Korean exports, fostering stronger trade ties and market access.

According to South Korea’s Industry Minister Kim Jung-kwan, the U.S. tariff cuts will take effect retroactively from the first day a bill is introduced in the South Korean parliament to formalize the investment framework.

This legislative step is expected to accelerate bilateral trade negotiations and ensure that South Korean companies can take advantage of lower tariffs before the planned August 1, 2026, deadline for tariff reductions.

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Implications for South Korea’s Economy

The proposed bill and tariff reductions are expected to have multiple benefits for the South Korean economy:

• Boosting Exports: Lower U.S. tariffs will make South Korean goods more competitive in the American market, particularly in strategic sectors such as semiconductors, automotive, and electronics.
• Encouraging U.S. Investment: By committing $350 billion in investments, South Korean companies strengthen ties with U.S. industries, potentially creating jobs and long-term strategic partnerships.
• Enhancing Trade Relations: The legislation reinforces South Korea’s position as a key trading partner of the U.S., ensuring continued access to one of the world’s largest consumer markets.

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Next Steps and Timeline

• November 26, 2025: The Democratic Party is expected to introduce the bill in the South Korean parliament.
• Post-legislation: Once approved, South Korean firms can begin investing in U.S. strategic industries under the framework established by the bill.
• August 1, 2026: U.S. tariff cuts on South Korean goods will officially take effect, contingent on the implementation of the investment bill.

Analysts expect that the bill will receive strong government support, given the high-profile nature of the trade agreement and the economic benefits it promises for both nations.