Seoul: South Korea’s foreign minister has firmly denied claims that Seoul is purposely stalling legislation needed to unlock major U.S. investments agreed under a high-profile trade deal, as diplomatic tensions simmer between the allied nations.
South Korean Foreign Minister Cho Hyun, speaking during a Washington press briefing following talks with U.S. Secretary of State Marco Rubio, stressed that Seoul has no intention of delaying the enactment of a special investment bill tied to the pact reached with Washington last year. Cho reiterated South Korea’s commitment to fulfilling its pledge to invest $350 billion in key American industries a cornerstone of the broader trade cooperation.
Rubio, according to Cho, expressed concern that the mood in Washington regarding Seoul’s progress was “not favourable,” reflecting frustration among some U.S. policymakers. Cho’s comments were aimed at cooling criticism that South Korea’s legislative pace is jeopardizing the implementation of the agreement.
The backdrop to these remarks is growing pressure from U.S. officials, including a warning from President Donald Trump that tariffs on South Korean products could rise if lawmakers in Seoul fail to pass the necessary legislation. The dispute centres on a special bill that would legalize and facilitate the massive investment pledge in the United States.
In response to the pressure, South Korea’s National Assembly last week announced a bipartisan commitment to finalize the investment-enabling legislation by March 9, highlighting the political importance attached to the issue and attempts to forestall trade friction. Both ruling and opposition parties have backed the plan to establish a special fund to channel the U.S. investments, which is also linked to tariff adjustments on Korean automobiles.
Seoul officials have long maintained that procedural complexities within its parliamentary system and concerns about foreign exchange impact have contributed to the slower legislative progress, rather than any deliberate attempt to stall. Government representatives pointed out that legal frameworks governing overseas investment are intricate and require thorough debate.
Trade envoy Yeo Han-koo also emphasized South Korea’s “good faith” efforts to honour the deal’s terms, noting that while Washington has not yet formalized new tariff rates, Seoul hopes to avoid punitive measures through prompt legislative action.
The diplomatic exchanges reflect a delicate balancing act for Seoul advancing economic cooperation with its most important strategic partner while managing domestic political processes and economic safeguards. As the March deadline approaches, both governments appear eager to retain momentum in what remains a key pillar of their bilateral relationship.