The 350 billion dollars (about 521 trillion won) "special act on investment in the United States" tied to the South Korea-U.S. tariff negotiations passed the Cabinet on the 17th. The government at a Cabinet meeting on the morning of the day, presided over by President Lee Jae-myung, reviewed and approved the promulgation of the "special act for the operation and management of strategic investments between the Republic of Korea and the United States of America" (hereinafter the special act on investment in the United States).
The law provides for establishing the Korea-U.S. Strategic Investment Corporation with 2 trillion won in government-contributed capital to carry out investments by Korea in U.S. shipbuilding and strategic industries. The timing and method of the capital contribution will be set by presidential decree. It is the same as the original bill that the ruling and opposition parties agreed to pass at a plenary session on the 12th. It is a follow-up measure under the memorandum of understanding (MOU) on strategic investment signed by the two governments in November last year.
According to the special act, of the 350 billion dollars in investment in the United States, ▲150 billion dollars will go to the Make America Shipbuilding Great Again (MASGA) program to revive the U.S. shipbuilding industry, and ▲200 billion dollars will go to strategic industries such as semiconductors, nuclear power, secondary batteries, and bio to advance the economic and national security interests of both countries. Separately, the sides also pledged to purchase U.S.-produced liquefied natural gas (LNG), liquefied petroleum gas (LPG), and more totaling 100 billion dollars over the next four years.
The fund's resources will come from the corporation's contributions, entrusted assets with the prior consent of the trustee institution, and funds raised by issuing Korea-U.S. strategic investment bonds. The fund will be used for equity participation and investment in investment vehicles designated by the U.S. administration, as well as loans and guarantees to support cooperative investments in shipbuilding. The corporation president's term is three years, limited to those with more than 10 years of experience in finance or strategic industries. The effective date is three months after promulgation.
◇ Gradual expansion of child allowance eligibility from age 8 to under 13
President Lee also promulgated a partial amendment to the Child Allowance Act that expands the current eligibility age of "8 years old" to "under 13" by 2030. In particular, children living outside the Seoul metropolitan area or in depopulating regions will receive up to 20,000 won more per month throughout 2026.
A decree revising the organization to add 115 personnel to the Korea Fair Trade Commission (FTC) also passed. Reinforcing the FTC's workforce was something President Lee had directed multiple times in public settings, including at last month's Cabinet meeting. At the time, Lee said, "The FTC's manpower is so small that it can't even conduct sufficient investigations, and companies know that and violate the law," adding, "We must make them think that if they break the law, they will certainly be caught."