South Korea creates a private company to invest $350 billion in the United States
SEOUL, November 26 (WAM) – The South Korean government announced today, Wednesday, that it will establish a strategic investment company that will manage a special fund to invest $350 billion in the United States, in fulfillment of the bilateral agreement on customs duties concluded last month.
The South Korean Yonhap news agency reported that the proposed company, which was temporarily given the name “Korea-American Strategic Investment Company,” will be established and operated for a maximum period of 20 years under a special draft law submitted by the ruling Democratic Party to support Seoul’s investment plans in the United States.
The South Korean government sought to submit the draft law this month after President Lee Jae-myung and US President Donald Trump agreed on the details of Seoul’s pledge to invest $350 billion, in exchange for reducing US customs duties, during their summit in Gyeongju on October 29.
Under the final terms, the investment will consist of $200 billion in cash installments, with an annual cap set at $20 billion, and an additional $150 billion for bilateral shipbuilding cooperation.
In return, the US administration agreed to reduce customs duties on Korean cars from 25% to 15%, with the reduction being applied retroactively from the beginning of the month in which the draft law is submitted.
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