In a move poised to reshape the landscape of international investment, the South Korean government has approved a sweeping enforcement decree for the Special Act on Korea-US Strategic Investment. The decision, reached at a Cabinet meeting on June 9, 2026, marks the final regulatory step before the launch of the Korea-US Strategic Investment Corporation—an entity set to coordinate a colossal $350 billion in cross-border investment over the next two decades.
This ambitious initiative springs from a memorandum of understanding signed between South Korea and the United States in November 2025. According to etnews, the agreement outlines $200 billion earmarked for US-bound investments and another $150 billion for collaborative ventures in shipbuilding, solidifying the two nations’ economic and industrial partnership. The legal and institutional framework, now cemented by the enforcement decree, is designed to ensure these investments are not only commercially viable but also strategically beneficial for both countries.
At the core of the new system lies the principle of ‘commercial rationality’. As defined by the decree, a project must demonstrate that its total expected revenue to Korea over its lifespan will cover both the principal and interest of the investment—a standard intended to safeguard the financial interests of the Korean government and taxpayers. The interest rate applied to these calculations is based on the 20-year US Treasury bond rate prevailing at the time of investment, with a premium negotiated between the two governments. This approach, as detailed by 한국방송, ensures that Korea’s stake in each project is both prudent and aligned with international financial norms.
But commercial sense isn’t the only yardstick. The government has made it clear that projects falling short of the profitability benchmark will not be dismissed outright. Instead, these will undergo a secondary review for their potential impact on national security and the stability of critical supply chains. “Even projects lacking commercial rationality must be reviewed for national security and supply chain stability impacts,” etnews reports, reflecting a broader, strategic calculus that goes beyond mere balance sheets.
The selection and approval process for investments is meticulous and multi-layered. The Business Management Committee, chaired by the Minister of Trade, Industry and Energy, is tasked with conducting thorough reviews of each proposal. This includes assessing profitability, legal and strategic considerations, recommendations from domestic companies, support from the US government, and expected revenues. Only after this comprehensive analysis does the committee forward its findings to the Operating Committee, which is led by the Deputy Prime Minister and Minister of Economy and Finance.
The Operating Committee itself is a newly expanded body, now including ex officio members from the Ministry of Economy and Finance, Ministry of Trade, Ministry of Foreign Affairs, Ministry of Strategy and Finance, and the Financial Services Commission. This structure is designed to foster inter-agency cooperation and ensure that all relevant government perspectives are brought to bear on each investment decision. According to 금융소비자뉴스, “The Operating Committee and Business Management Committee now include ex officio members from the Ministry of Economy and Finance, Ministry of Trade, Ministry of Foreign Affairs, Ministry of Strategy and Finance, and Financial Services Commission to enhance inter-agency cooperation.”
Supporting these committees is a network of specialized subcommittees and working groups. The Operating Committee can establish expert panels focused on finance, industry, technology, risk, law, and regulation, while the Business Management Committee is empowered to form subcommittees for more detailed project evaluations. The Ministry of Trade will also house a dedicated Business Management Team to provide logistical and analytical support for these deliberations.
The backbone of the entire strategy is the Korea-US Strategic Investment Corporation, scheduled to launch on June 18, 2026, in tandem with the enforcement of the special act. The corporation will operate for 20 years, until June 2046, and is capitalized with 2 trillion won (approximately $1.5 billion), which the government will inject in installments. The corporation will not work in isolation; it will collaborate with key financial and development institutions, including the Export-Import Bank of Korea, Korea Development Bank, Korea Trade Insurance Corporation, Korea Investment Corporation, Korea Ocean Business Corporation, and the Korea Infrastructure & Urban Development Corporation. Some tasks may be delegated to these partners, particularly in areas such as project financing, risk assessment, and overseas development.
Another innovative feature is the mechanism for funding and financial flexibility. The corporation is authorized to issue Korea-US Strategic Investment bonds, following procedures set out in the Export-Import Bank’s bond issuance rules. In cases of temporary fund shortages, the Operating Committee can approve adjustments between different fund accounts, ensuring the corporation remains agile in the face of shifting market conditions.
The government’s timeline is tight but decisive. “The corporation is planned to launch immediately on June 18, 2026, coinciding with the special act enforcement, with detailed projects finalized after committee reviews, National Assembly reporting, and US government consultations,” 한국방송 notes. Each individual investment will be subject to a rigorous process: initial review by the Business Management Committee, deliberation by the Operating Committee, reporting to the National Assembly, and, crucially, consultation with US authorities. Only after clearing these hurdles will projects receive final approval.
Prime Minister Kim Min-seok, who presided over the landmark Cabinet meeting, underscored the urgency and significance of the initiative. A government official told 금융소비자뉴스, “We plan to launch the Korea-US Strategic Investment Corporation immediately upon the effective date of the special act to swiftly complete the legal and institutional foundations for implementing the Korea-US strategic investment agreement.”
While the scale and complexity of the project are daunting, the government’s methodical approach is designed to minimize risk and maximize value—both for Korea’s economy and its broader strategic interests. The dual focus on commercial rationality and national security reflects a nuanced understanding of the modern global economy, where financial returns and geopolitical considerations are increasingly intertwined.
As the June 18 launch date approaches, attention will turn to the first wave of investment projects. These could range from advanced manufacturing and green technology to shipbuilding and infrastructure, all sectors where both Korea and the US have deep expertise and mutual interests. The hope is that this unprecedented partnership will not only yield robust financial returns but also fortify the economic and strategic bonds between Seoul and Washington for decades to come.
With the legal and operational framework now firmly in place, South Korea stands ready to embark on one of the largest and most carefully orchestrated international investment initiatives in its history—a move that promises to reverberate across industries and borders for years ahead.