Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Korea goes adrift in processing legislation of US investment
U.S. President Donald Trump gestures as he boards Air Force One at Pope Army Airfield, in Fort Bragg, N.C., Feb. 13, en route to Palm Beach, Fla. AP-Yonhap
By Lee Min-hyung
Coupang risk feared to cast impact on possible tariff hike
Korea faces mounting uncertainty over the timely passage of legislation required to implement its $350 billion investment pledge in the United States, as partisan rancor in the National Assembly shows little sign of letting up.
Last week, Seoul launched a special Assembly committee tasked with shepherding the legislation amid mounting trade pressure from Washington.
The U.S. has warned it could reinstate a 25 percent tariff on Korean imports, up from the current 15 percent, citing delays in Seoul’s ratification of a bilateral trade agreement clinched in November 2025.
The committee is mandated to operate for one month through March 9, with the stated goal of securing passage within that timeframe.
However, the committee’s inaugural meeting Thursday was cut short by a bipartisan dispute, which fuels concerns that the political polarization will continue to impede progress of upcoming meetings. With the legislative clock ticking, the prospect of a timely breakthrough remains unclear.
A reversion to the 25 percent tariff would pose a material risk to Korea’s export-driven economy. Major manufacturers, including Hyundai Motor Group, still remain heavily reliant on the U.S. market. The trade risk could weigh on corporate earnings, dampen investor sentiment and undermine broader economic stability here.
Compounding concerns is a separate but potentially consequential issue involving Coupang, the Seattle-headquartered e-commerce company whose principal operations are in Korea.
Coupang interim CEO Harold Rogers appears for questioning by police in Seoul, Feb. 6. Yonhap
The firm has come under intense scrutiny from Korean authorities following a large-scale data breach. Its interim CEO Harold Rogers has faced repeated questioning by police and lawmakers over the company’s handling of the incident.
The issue has drawn attention in Washington. Some members of U.S. Congress have called Seoul’s investigation as “discriminatory attacks” on an American tech firm. Rogers is scheduled to testify Feb. 23 before the U.S. House Judiciary Committee where he is expected to address his treatment during the Korean probe.
The Trump administration, which has consistently championed an “America First” trade posture, could interpret any adverse testimony as further justification for tightening trade measures, such as the tariff hike, against Korea.
While the Korean government maintains that the Coupang investigation and tariff issue are separate matters, market observers said the issues may become intertwined from the viewpoint of U.S. policymakers.
“Rogers’ upcoming testimony could generate negative sentiment toward Korea in the U.S., potentially influencing deliberations over tariff levels,” an industry official said. “There appears to be a perceptual gap between Seoul and Washington regarding the Coupang case.”
The auto industry here will be the largest victim, once the U.S. ends up reinstating the tariff to 25 percent. Hyundai Motor and Kia would face a combined cost of some 11 trillion won under the scenario, according to data from Daol Investment & Securities. The possible tariff hike will also deal a severe blow to local tiremakers and multiple auto parts makers.