Although the U.S. Supreme Court concluded that the reciprocal tariff imposed by U.S. President Donald Trump on the world is unlawful, the Korean government plans to proceed as planned with $350 billion (about 505 trillion won) in investment in the United States.
According to the Ministry of Trade, Industry and Energy on the 22nd, the Korean government is currently in the process of selecting candidate projects for investment in the United States. It did not stop despite the Supreme Court's ruling the day before. A Ministry of Trade and Industry (MOTI) official said, "The investment projects in the United States are at the stage of working-level consultations."
The government has formed the "Korea-U.S. Strategic Investment MOU Implementation Committee" to review candidate projects for investment in the United States and is examining the shortlist. Japan confirmed its first set of investment projects in the United States ahead of Korea, including gas-fired power generation, crude oil export infrastructure upgrades, and synthetic diamond manufacturing. The total investment in the three projects is $36 billion (about 52 trillion won).
In Korea's National Assembly, some say that, since the U.S. Supreme Court ruled that the reciprocal tariff based on the International Emergency Economic Powers Act (IEEPA) is unlawful, discussions on the special act on investment in the United States should be reconsidered. The Progressive Party said in a written briefing the day before, "There is absolutely no reason for our National Assembly to go along with a policy that has lost its legal basis even in the United States," adding, "The government and the National Assembly must immediately stop pushing the special act on investment in the United States."
Even so, the government plans to proceed with investment in the United States as scheduled. The day before, Kim Jung-kwan, Minister of the Ministry of Trade and Industry (MOTI), held an emergency meeting with related departments at the Seoul Technology Center. At the meeting, the ministry set a policy to continue the consultations that have been underway with the U.S. side.
Minister Kim said, "This ruling has somewhat heightened uncertainty for exports to the United States," but added, "The conditions for exports to the United States secured through the Korea-U.S. tariff agreement will be maintained in broad terms." It is seen as a judgment that Korea does not need to be the first to seek renegotiation on investment in the United States when countries in similar trade environments are not making such demands.
Meanwhile, President Donald Trump said on the 21st (local time) that he would impose a 15% tariff on imports from countries around the world based on Section 122 of the Trade Act. He intends to maintain a hard-line tariff policy despite the Supreme Court's ruling.
Section 122 of the Trade Act gives the president authority to impose tariffs of up to 15% for up to 150 days in response to balance of payments problems. To continue measures beyond that period, Congress must approve an extension. President Trump also intends to use Section 232 of the Trade Expansion Act and Section 301 of the Trade Act to replace the reciprocal tariff.