A special act on strategic investment management with the United States, a follow-up legislative step after Korea-U.S. tariff negotiations, passed a cabinet meeting on Monday.

At the meeting at the government complex in Sejong chaired by President Lee Jae-myung (이재명), the government deliberated and approved four bills for promulgation, including the special act, 36 presidential decrees and two general agenda items.

The cabinet approval process was completed five days after the law passed the National Assembly by agreement between the ruling and opposition parties.

The special act centers on establishing the Korea-U.S. Strategic Investment Corporation to implement a $350 billion investment in the United States under a Korea-U.S. memorandum of understanding (MOU).

Under the law, $150 billion of the $350 billion will be invested exclusively in shipbuilding, and $200 billion will be invested in areas that enhance the economic and national security interests of the two countries.

The corporation’s capital will be 2 trillion won, fully funded by the government, and the timing and method of contributions will be set by presidential decree.

A Korea-U.S. Strategic Investment Fund will be set up within the corporation. Its resources will include contributions from the corporation, entrusted assets with prior consent from the trustee institution and funds raised by issuing Korea-U.S. strategic investment bonds.

The fund will later be used for equity contributions and investments in investment vehicles designated by the U.S. government, as well as loans and guarantees to support shipbuilding cooperation investments.

The law will take effect three months after promulgation.

The government plans to launch a founding committee to establish the Korea-U.S. Strategic Investment Corporation immediately after the law is promulgated.

[Yonhap News Agency]