By Kyu-seok Shim
SEOUL, Feb 9 (Reuters) – South Korea’s parliament voted on Monday to form a special committee to accelerate legislation tied to Seoul’s $350 billion investment commitments in the United States under a trade agreement between the countries.
The committee’s launch follows U.S. President Donald Trump’s abrupt announcement in late January that tariffs on South Korean autos, pharmaceuticals, lumber and other goods would be raised back to 25% from 15%, accusing Seoul of failing to legislate a trade deal agreed last year.
Parliamentary Speaker Woo Won-shik urged the committee to begin work immediately and aim to pass the related legislation by the end of February.
“To the U.S. government, I say this: the National Assembly of the Republic of Korea is discussing this legislation with a firm will to act swiftly, while adhering to our laws and procedures,” Woo said.
Trump’s threat in a social media post to hike tariffs has left Seoul scrambling to explain to Washington its commitment to invest in strategic U.S. industries remained unchanged, despite concerns raised by officials over large capital outflows amid weakness in the Korean won.
South Korea’s industry and trade ministers made separate trips to Washington in the days following the tariff threat, but returned without clear signals on U.S. intentions.
Industry Minister Kim Jung-kwan met with U.S. Commerce Secretary Howard Lutnick, telling reporters later that he had reiterated Seoul’s commitment to the investment plan but made limited progress amid ongoing tensions.
Upon returning to Seoul, Trade Minister Yeo Han-koo said the U.S. had cited delays in legislating the investment act as the primary reason for the tariff warning, and that the National Assembly’s move to fast-track the bill would definitely help efforts to prevent immediate tariff increases.
The proposal to form the committee was passed with 160 votes in favour, three opposing and one abstention. The 16-member panel will include eight lawmakers from the ruling Democratic Party, seven from the opposition People Power Party and one from outside the two major blocs, with a PPP lawmaker serving as chair. The committee will operate under a 30-day mandate.
(Reporting by Kyu-seok Shim and Yunji HaEditing by Ed Davies)
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