Facing tariff threats from U.S. President Donald Trump and global volatility triggered by the escalating U.S.-Iran conflict, South Korea's rival political parties have broken a legislative deadlock to advance a crucial trade bill.
The ruling Democratic Party and the main opposition People Power Party formally agreed Wednesday to hold a parliamentary vote on March 12 to pass the "U.S. Investment Special Act." The rare bipartisan compromise follows strong dissatisfaction from the White House over Seoul's legislative delays.
The core focus of the bill is to implement a 2025 bilateral trade agreement in which South Korea committed to investing approximately $350 billion in the United States. In exchange, Washington agreed to reduce import tariffs on South Korean goods to 15%.
— Yonhap News Agency (@YonhapNews)March 4, 2026
Rival parties expected to pass U.S. investment bill on March 12https://t.co/nkKuMS465d
Democratic Party lawmaker Cheon Jun-ho and People Power Party Rep. Yoo Sang-beom brokered the agreement, according to Reuters. Cheon stated that the opposition agreed to support the bill based on "national interests," with committee reviews expected to conclude as early as March 9 ahead of the final plenary vote.
Yoo acknowledged the breakthrough was heavily influenced by the dramatic international situation surrounding the ongoing U.S.-Iran war. He noted that Washington is currently in a highly sensitive period, and further legislative delays could provoke "very tough" retaliatory measures from the United States.
Those retaliatory measures refer to threats Trump posted on social media in January, warning that if South Korea failed to promptly pass the legislation, Washington would hike tariffs on South Korean goods from 15% back to 25%. Such a move targets Seoul's biggest economic vulnerability, as higher tax rates would strip key export products—including automobiles, batteries, and consumer electronics—of their global price competitiveness.
Under dual pressure from national security concerns and economic interests, the two major parties concluded it was "not the time for internal fighting," agreeing to accelerate the legislation to stabilize the U.S.-South Korea alliance.
Despite the breakthrough on foreign policy, local media criticized the parties for "selective consensus-building." During internal meetings on Wednesday, the rival factions remained deadlocked on domestic affairs. Lawmakers continue to talk past each other regarding the proposed mergers of administrative districts between Daejeon Metropolitan City and South Chungcheong province, and between Daegu Metropolitan City and North Gyeongsang province. （Related： Humanoid Robots Lead China’s 15th Plan, Shaking Up Semiconductors ｜ Latest ）
