Korea moves to fast-track investment bill to fend off US tariffs

South Korea’s rival parties are moving to form a special parliamentary panel to fast-track legislation tied to US-bound investment, as Seoul makes a last-ditch effort to counter renewed tariff threats from Washington.

Yeo Han-koo, the country’s chief trade negotiator, said Thursday that the bipartisan effort would help Seoul press Washington to hold off on formal steps to raise tariffs.

“The biggest reason the US has cited for raising tariffs on South Korea is the delay in legislating the special law on US-bound investment,” Yeo told reporters after returning from Washington.

Yeo said that even if the US proceeds with publishing tariff measures in the Federal Register following comments by US President Donald Trump, the key question will be whether the increases take effect immediately or after a grace period of one to two months.

Yeo visited Washington from Jan. 29 through Thursday after Trump warned on Truth Social in January that he could reimpose tariffs of up to 25 percent on South Korean goods, up from the 15 percent level set under a previous agreement.

On Wednesday, lawmakers from both major parties agreed to form a special panel to speed passage of the long-delayed “special law” linked to a Korea-US trade agreement, addressing a legislative bottleneck Washington has cited as a trigger for the tariff threat.

The agreement also ends a standoff over February’s legislative calendar, clearing the way for a plenary session on Feb. 12 to pass bills with bipartisan backing.

The 16-member committee will comprise eight lawmakers from the ruling Democratic Party, seven from the main opposition People Power Party, and one from a minor party. It will include at least one member each from the political affairs, budget and finance, and industry committees, with the chair drawn from the ruling party.

Lawmakers will grant the panel legislative authority and refer relevant bills to it for negotiated passage. Its mandate will run for one month from parliamentary approval of the panel’s formation, scheduled for a Feb. 9 vote.

The investment bill has stalled amid a dispute over whether it requires parliamentary ratification. The opposition has argued that the Korea-US tariff agreement — involving more than $350 billion, including $200 billion in cash commitments — places a heavy burden on the public and therefore requires legislative approval.

The ruling party has countered that ratification is unnecessary because the deal is tied to a legally nonbinding memorandum of understanding.

The abrupt cross-party agreement came as lawmakers concluded that Washington’s push to reinstate tariffs was more serious than previously assumed.

“From a national interest perspective, it is urgent to pass the bill as a current priority,” said Rep. Song Eon-seok, floor leader of the People Power Party.

Talks between the two governments have yielded limited progress so far.

In Washington, Yeo met Rick Switzer, a deputy US trade representative, as well as members of Congress, industry executives and think tank officials. He said the discussions focused on clarifying the rationale behind Trump’s Truth Social remarks and reiterating Seoul’s commitment to existing Korea-US agreements.

A planned meeting with US Trade Representative Jamieson Greer did not take place. Yeo said he has been in frequent contact with Greer — including five discussions over the past three weeks — and that further talks with the US Trade Representative’s office are scheduled for next week.

Seoul has stepped up high-level outreach since Trump’s tariff warning, dispatching both its industry and foreign ministers to Washington. The efforts have yet to reverse momentum toward higher duties.