Finance chief says special bill to promote investment in US must be submitted within November

Finance Minister Koo Yun-cheol speaks to reporters at the government complex in Sejong, Wednesday. Yonhap

Finance Minister Koo Yun-cheol on Wednesday pledged to submit a special bill to promote investment in the United States to the National Assembly before the end of this month, following an agreement between Seoul and Washington on the details of South Korea's $350 billion investment package tied to a trade deal.

The agreement was finalized during President Lee Jae Myung's meeting with U.S. President Donald Trump on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju last month.

"The submission of the special law needs to be communicated to the U.S. in order for the 15 percent auto tariff to take effect as of Nov. 1," he told reporters.

If the government submits the bill as planned, U.S. tariffs on South Korean products are expected to be reduced retroactively to 15 percent from the month of submission, according to the Ministry of Economy and Finance.

Under the final terms of the investment package, South Korea will provide $200 billion in cash installments, capped at $20 billion per year, along with an additional $150 billion earmarked for bilateral cooperation in shipbuilding.

Regarding the structure for managing the $200 billion investment fund, Koo suggested it will likely take the form of a government fund.

"We are discussing various options within the government, and the National Assembly will also review the matter," he said. "Basically, we need a mechanism to hold and manage the money, and I expect that system will operate similar to our other government funds."