‘Korea-US Strategic Investment Special Act’ approved by State Council of South Korea... Korea-U.S. Strategic Investment Corporation to be established

[Financial News] The ‘Special Act for Korea-US Strategic Investment Management’ (Korea-US Strategic Investment Special Act), a follow-up legislative measure to the Korea-U.S. customs negotiations, was approved by the State Council of South Korea on the 17th.
At the State Council of South Korea meeting held that day at Government Complex Sejong, President Lee Jae Myung reviewed and approved the promulgation bill for the Korea-US Strategic Investment Special Act, along with four other law promulgation bills, 36 presidential decrees, and two general agenda items. As a result, the State Council of South Korea completed its approval procedures just five days after the Korea-US Strategic Investment Special Act passed the National Assembly of the Republic of Korea with bipartisan support.
The core of the Korea-US Strategic Investment Special Act is the establishment of the Korea-U.S. Strategic Investment Corporation to implement a US$350 billion investment in the United States under the Korea-U.S. strategic investment memorandum of understanding (MOU). Under the act, US$150 billion of the total will be invested specifically in the shipbuilding industry, while US$200 billion will be directed to sectors that enhance the economic and national security interests of both countries.
The corporation will have paid-in capital of 2 trillion won, to be fully funded by the government, with the timing and method of the capital injection to be set by presidential decree. A Korea-U.S. Strategic Investment Fund will be established within the corporation. The fund’s resources will come from contributions by the corporation, entrusted assets obtained with prior consent from trustee institutions, and proceeds from issuing the Korea-U.S. Strategic Investment Bond, among other sources. The fund is expected to be used for equity participation and investments in investment vehicles designated by the United States government, as well as for loans and guarantees to support cooperative shipbuilding investments. The act will take effect three months after its promulgation.
In addition, the State Council of South Korea approved amendments to the Child Allowance Act. The changes will raise the eligible age for child benefits from the current 8 years old to 13, with the expansion to be phased in annually starting this year. Children living in areas with declining populations will be eligible for an additional payment of up to 20,000 won per month.
The State Council of South Korea also discussed a ‘local preference plan for balanced growth’ and heard ministry reports on several topics: the current response to the situation in the Middle East; the status and future plans of the National Growth Fund; progress on integrating the high-speed rail services of Korea Railroad Corporation (KORAIL) and SR Corporation; measures to build a One-stop Support System for SMEs, Startups, and Small Business Owners; and plans to enhance citizen sovereignty by improving complaint handling and communication and by developing AI-based civil service platforms.

cjk@fnnews.com Choi Jong-geun Reporter