The South Korean government, amid warnings from the United States about potential tariff increases on Korean goods due to delays in legislative measures, is setting up an 'Investment Implementation Committee' to evaluate candidate investment projects before the implementation of a special law. Deputy Prime Minister and Finance Minister Kyoo Hyun-chul announced this initiative during a meeting on foreign economic policy, emphasizing the necessity of proactive management in reviewing investment prospects in conjunction with US partnerships.

The committee aims to establish a preliminary system for project evaluations until the special law is passed. The committee will act as a temporary control tower to oversee US investments and includes the participation of various governmental bodies, with a focus on assessing the commercial viability and other financial circumstances of proposed projects. Essentially, it is a strategic move to allay US concerns over delayed investments compared to Japan, which could help thwart the imposition of higher tariffs that were threatened by President Donald Trump earlier this month.

Despite bipartisan promises in the South Korean National Assembly to process the special investment law by early next month, the government’s pre-emptive actions are meant to mitigate potential tariff consequences and strengthen the investment framework with the US. The White House has responded positively to the formation of a special committee in the National Assembly to address the issue, indicating ongoing collaboration between the two countries regarding investments and regulatory measures.