Six Major Business Groups Urge National Assembly to Swiftly Pass "Special Act on Investment in the United States"

Trade Uncertainty Amplified by Ruling Against the IEEPA
"Concerns Over Selective Tariffs"
"Call for Passage Within Special Committee Deadline"

As the United States has recently undergone dramatic changes in its trade policy, the business community issued an urgent appeal on March 3, calling on the National Assembly to swiftly enact the "Special Act on Investment in the United States."

Kim Sanghoon, the chairman, is striking the gavel at the Special Committee on Investment in the United States full meeting held at the National Assembly on the 24th of last month. Photo by Yonhap News

In a joint statement, the six major business organizations-Korea Economic Association (KEF), Korea Chamber of Commerce & Industry, Korea Employers Federation, Korea International Trade Association, Korea Federation of SMEs, and Korea Federation of Mid-sized Enterprises-stated that "uncertainty in the trade environment has reached an extreme level due to the U.S. Supreme Court's ruling that the International Emergency Economic Powers Act (IEEPA) is unconstitutional."

The business community sees this ruling as a signal that the U.S. government is likely to maintain its current tariff policy by using alternative laws and may impose even more sophisticated and selective tariffs on certain countries or items. In particular, if key industries such as semiconductors, automobiles, and pharmaceuticals-which drive Korea's exports to the U.S.-become targets, they warn that not only exports but also global competitiveness could decline sharply.

The reason for this push for legislation is that the Special Act on Investment in the United States is currently stalled in the National Assembly. While the bill was expected to protect the local investments of Korean companies and serve as leverage in negotiations with the U.S. government, ongoing political strife between parties has made it unclear whether the bill will be processed before the special committee's activity deadline on March 9.

The six major business organizations emphasized, "The longer the enactment of the Special Act on Investment in the United States is delayed, the weaker our negotiating power with the U.S. will become, and it will be difficult to realize the practical benefits of Korea-U.S. economic cooperation. To minimize trade risks for our companies and enable them to actively pursue exports to the U.S., the National Assembly should promptly pass the Special Act on Investment in the United States within the special committee's activity period."

This content was produced with the assistance of AI translation services.