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Even before law passes, Seoul to create review groups for U.S. investment to reassure Washington

Published: 10 Feb. 2026, 18:39

Deputy Prime Minister and Finance Minister Koo Yun-cheol speaks at a meeting of economy-related ministers at the government complex in Jongno District, central Seoul, on Feb. 10. [YONHAP]

The Korean government will begin reviewing potential U.S. investment projects even before the passage of a special law intended to provide a legal framework for large-scale Korean investment in the United States. The decision was made seeking to show progress on Seoul's commitments to Washington.

On Tuesday, the government held a meeting of economy-related ministers, chaired by Deputy Prime Minister and Finance Minister Koo Yun-cheol, and approved a plan to establish a temporary implementation framework for carrying out the memorandum of understanding (MOU) on Korea-U.S. strategic investment.

Until now, the government had maintained that it would be difficult to discuss specific investment projects before the special act was passed. However, amid intensifying pressure from the United States, Seoul has shifted its stance, deciding to prepare working-level procedures — such as reviewing potential investment destinations — even ahead of the law’s enactment.

The special act is expected to pass the National Assembly by March 9, but the government estimates that it will take an additional three months before it can take effect as enforcement decrees and other preparations are required. During this interim period, officials fear that tensions could resurface with Washington, which has been pushing for swift execution of investment commitments.

Trade Minister Yeo Han-koo, center, presides over the 54th meeting of the trade policy committee at the Korea Chamber of Commerce and Industry in Jung District, central Seoul, on Feb. 10. [YONHAP]

“We are following the normal legislative procedures required under domestic law, but it is not in the national interest for unnecessary misunderstandings to arise or trust to be undermined between Korea and the United States during the MOU implementation process,” Koo said. “Until the law takes effect, we will establish a system that allows for preliminary reviews of candidate projects identified by both sides, within the scope of what is administratively possible.”

Under the plan, the meeting of economy-related ministers will serve as a temporary command center to review potential U.S. investment projects until the special act takes effect, effectively substituting for the operating committee that will later be set up under the Korea-U.S. strategic investment corporation, as mandated by the law.

A temporary Strategic Investment MOU Implementation Committee (translated), attended by the industry minister and vice ministers from relevant agencies, will also be formed. Under the committee, a preliminary project review panel made up of experts will be established to assess the commercial viability and financial conditions of candidate projects proposed by both countries. Final investment decisions and execution, however, will only take place after the special act enters into force.

Currently, investment projects in areas such as nuclear power and energy are being discussed with the U.S. side.

Separately, the Ministry of Trade, Industry and Resources on Tuesday convened a meeting of its trade policy committee, chaired by Trade Minister Yeo Han-koo, to review the status of agreements related to nontariff barriers.

U.S. officials have continued to raise concerns not only about delays in passing the investment law but also about nontariff barriers. On Monday, Foreign Minister Cho Hyun told the National Assembly that the United States has warned it may raise tariffs on Korea to reduce its trade deficit if negotiations over nontariff barriers fail to make progress.

U.S. President Donald Trump waves to the media as he walks on the South Lawn upon his arrival at the White House on Feb. 9. [AP/YONHAP]

In November last year, the two countries released a joint fact sheet pledging to ease nontariff barriers in areas including automobiles, agriculture and digital services. Key measures include improving quarantine procedures for agricultural and livestock products and preventing discrimination against U.S. companies in Korea’s digital laws and policies.

Recently, U.S. officials have expressed strong dissatisfaction with what they see as Korea’s moves to tighten digital regulations.

Although Korea and the United States had agreed to convene a joint committee under their FTA in December 2025 to address nontariff barrier issues, the meeting was postponed due to difficulties in coordinating the agenda. Politico and The Wall Street Journal have reported that U.S. frustration over Korea’s digital regulatory stance was a major reason for the delay.

Officials from the Ministry of Science and ICT, the Ministry of Agriculture, Food and Rural Affairs, the Fair Trade Commission and the Personal Information Protection Commission also attended Tuesday’s trade policy meeting, as they oversee digital regulation and agricultural quarantine issues.

Yeo called on relevant ministries to work closely together to ensure that major nontariff issues are “managed in a stable manner without becoming linked to tariff measures.”

Meanwhile, Rick Switzer, deputy U.S. trade representative, arrived in Korea on Tuesday and was scheduled to meet with Yeo and other officials to discuss the possibility of renewed tariffs, with easing nontariff barriers expected to be a key agenda item.

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 AHN HYO-SEONG [[email protected]]