South Korea's ruling Democratic Party introduced a bill on Wednesday to establish a special fund to finance $350 billion of investment in the US committed under a deal with Washington to cut US tariffs on its exports, the industry ministry said.
The bill, which was written in consultation with the government, fulfills the condition for the US to lower tariffs on South Korean autos and automobile parts retroactively to November 1, the ministry said in a statement.
The two countries this month unveiled details of the agreement reached by their presidents, capping more than three months of intense negotiations on how to structure the massive investment in a way that would not sharply weaken and destabilise the South Korean won currency.
Under a special act to be legislated, South Korea will establish a fund financed by income from the country's foreign assets and government-backed bonds issued in offshore markets, according to the bill.
South Korea has pledged $250 billion to be invested in strategic US industries and $150 billion in projects to modernise the American shipbuilding industry.
South Korea's Industry Ministry has sent a letter to US Commerce Secretary Howard Lutnick informing him about the introduction of the bill on Wednesday and requested the implementation of the tariff cuts on autos and automobile parts, the statement said.
(Reporting by Jack Kim, Jihoon Lee, Heejin Kim, Ju-min Park; Editing by Ed Davies)
