South Korea approves $350B US investment

South Korea's cabinet has approved a presidential decree to implement a $350 billion strategic investment plan in the United States. This plan, agreed upon last year as part of a broader trade deal, involves $200 billion in direct investments in strategic US industries and $150 billion in shipbuilding-related cooperation. In return, South Korea will receive more favorable tariff terms on its goods, including automobiles. The decree defines 'commercial reasonableness' for projects and outlines the establishment of a state-backed Korea-US Strategic Investment Corporation with 2 trillion won in initial capital to manage these investments over 20 years. The move follows threats from US President Donald Trump earlier this year to raise tariffs on South Korean goods due to delays in legislative procedures, which prompted the South Korea — National Assembly (South Korea) to pass a special bill in March.