Market Update: Six major business groups back quick passage of Korea-U.S. trade bill at Assembly – Full Analysis

 

Korea’s business community urged the National Assembly to swiftly pass a pending special bill on implementing Korea’s investment package for the United States on Tuesday, amid mounting legal uncertainty over U.S. trade policy.

 

The request follows a recent U.S. court ruling that struck down U.S. President Donald Trump’s tariffs based on the International Emergency Economic Powers Act (IEEPA), which has made it even harder for Seoul to predict Washington’s tariff policies. Tuesday’s move came amid heightened concerns that Seoul must quickly secure a legislative foundation to strengthen its negotiating leverage with the United States.

 


 

Six major business groups — the Federation of Korean Industries, the Korea Chamber of Commerce and Industry, the Korea Enterprises Federation, the Korea International Trade Association, the Korea Federation of SMEs and the Federation of Middle Market Enterprises of Korea — issued an emergency joint statement calling for the National Assembly to pass the bill.

 

“The National Assembly should pass the bill within the special committee’s activity deadline so that Korean companies can minimize trade risks and actively pursue exports to the United States,” the groups said. The National Assembly’s special committee on the investment bill is set to expire next Monday. 

 

The business community pointed to the legal foundation of U.S. trade policy as its primary concern. On Feb. 20, the U.S. Supreme Court ruled that reciprocal tariff measures imposed under the IEEPA were unlawful, intensifying debate over the legal legitimacy of existing tariff policies.

 

Vehicles manufactured for export are seen parked at a port in Pyeongtaek, Gyeonggi, on Feb. 25. [YONHAP]

 

“If the application of the IEEPA is constrained, the U.S. government may resort to other legal tools to impose selective tariffs on specific countries or items,” the business groups warned.

 

They noted that key Korean export sectors — including semiconductors, automobiles and pharmaceuticals — could be directly affected. Exports to the United States accounted for approximately 18 to 19 percent of Korea’s total exports last year, maintaining its position as Korea’s largest export market. Heightened volatility in U.S. trade policy could also influence corporate investment plans and production strategies.

 

“The longer it takes to pass the special bill on U.S. investments, the weaker our negotiating power with the United States will become, and it will be difficult to secure tangible benefits from Korea-U.S. economic cooperation,” the six groups said.

 

The National Assembly’s special committee for a bill on implementing Korea’s investment package for the United States is in session at the National Assembly in Yeouido, western Seoul on Feb. 24. [YONHAP]

 

The special bill seeks to provide tax and financial support for companies investing in the United States and to establish a government-level response system for trade negotiations. It is designed to institutionally back expanded U.S.-bound investment and mitigation of tariff-related risks.

 

U.S. President Donald Trump had previously hinted in January at the possibility of raising tariffs, citing delays in Korea’s legislative process. Following the IEEPA ruling and subsequent political reactions, uncertainty surrounding the trade environment has escalated even further.

 

The National Assembly’s special committee on U.S. investment is scheduled to resume its activities on Wednesday after it was temporarily suspended due to the continued confrontation between the ruling and opposition parties over the passage of judicial laws. Its mandate runs until Monday morning, during which it plans to complete deliberations through subcommittee review and bring the bill to a vote.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

BY PARK YOUNG-WOO [[email protected]]