Mar 5 • 05:58 UTC 🇰🇷 Korea Hankyoreh (KR)

Agreement on 2 trillion won investment corporation for US investment between ruling and opposition parties

Ruling and opposition parties in South Korea have reached an agreement to establish a separate investment corporation dedicated to US investments with a minimum capital of 2 trillion won.

On the 5th of this month, South Korea's ruling and opposition parties agreed to establish a separate investment corporation specifically aimed at managing investments in the United States. This decision was made during a session of the special committee overseeing the US investment bill. Park Soo-young, a member of the opposition party and the special committee's moderator, stated that the funds for this corporation would be minimized to 2 trillion won, fully funded by the government. Initially, there was a proposal of capital ranging from 3 trillion to 5 trillion won, but the figure was reduced following discussions.

In light of concerns regarding governance, the number of board members was also decreased from five to three, with the total workforce capped at 50 people. To prevent favoritism in appointments, only candidates with over ten years of experience in finance or strategic industries will be eligible to serve as the corporation's president or directors. Furthermore, a new risk management committee is to be established within the investment corporation to provide a tri-layer safety net.

Regarding transparency, the government preferred to keep transactions confidential, but an agreement was reached to maintain a general principle of disclosure while safeguarding national security and proprietary business information. Instead of requiring legislative approval for each investment, the government will provide advance reports to the relevant standing committee. Park expressed confidence that there would be no issues in passing the bill in the upcoming full assembly meeting on the 9th, as there seems to be a consensus on most contentious issues among lawmakers.

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