The Democratic Party of Korea on the 6th settled on pushing only a special law to create a $350 billion (about 506 trillion won) investment fund in the United States, instead of a National Assembly ratification process for the Korea-U.S. tariff agreement memorandum of understanding (MOU). After the presidential office concluded that "the tariff agreement MOU has no legal binding force and is not subject to National Assembly ratification," the ruling party also said "swift legislation" is important and moved in step.
Floor leader Kim Byung-kee of the Democratic Party said at a policy coordination meeting held at the National Assembly that with the disclosure of the MOU and fact sheet on the Korea-U.S. tariff agreement imminent, "now we must turn the best outcome into the best results," adding, "legislation and budgets to create a U.S.-bound investment fund, cut tariffs, and foster strategic industries are key tasks." He continued, "we must solidify trust between Korea and the United States through swift legislation," and said, "we will act firmly and quickly."
Policy Committee Chair Han Jeong-ae also stressed, "the Korea-U.S. tariff negotiations are an MOU based on mutual trust and are not subject to National Assembly ratification." In response to the People Power Party's point that "if it is not subject to National Assembly ratification because it has no legal binding force, does that mean the $350 billion does not have to be invested in the United States," Han said, "Korea and the United States have come this far based on, and again on, mutual trust. Through swift legislation of the special law on investment in the United States, it will suffice to ensure the certain implementation of the MOU."
Han said, "it is to promptly resolve uncertainties related to the economy and secure the external competitiveness of major industries," and repeatedly asked for cooperation for the swift passage of the special law on investment in the United States.
The Democratic Party had discussed whether to go through a National Assembly ratification process for follow-up measures on the Korea-U.S. tariff agreement or to push only the special law on investment in the United States. After the presidential office set its position on the 5th that the Korea-U.S. tariff agreement MOU has no legal binding force and does not require National Assembly ratification, the ruling party also settled on first legislating only the special law on investment in the United States.
The presidential office and the government are said to be citing "swift legislation" as the reason. Under the Trade Treaty Act, requesting the National Assembly's ratification requires submitting domestic industry support measures, funding plans, and more, which takes considerable time. However, even the special law on investment in the United States is unlikely to win smooth cooperation from the opposition, which argues for "transparent disclosure of negotiations," during the standing committee's bill review process.