South Korea scrambles to pass U.S. investment bill after Trump threatens higher tariffs

Trade Agreement and Tariffs - The United States has agreed to impose 15% tariffs on imports from South Korea under a trade deal affecting the majority of South Korean products [1] - President Trump announced an increase in tariffs on South Korean exports to 25% from the current 15% due to delays in parliamentary approval of the trade deal [2] Legislative Actions - South Korea's ruling Democratic Party plans to pass a special act related to the U.S. trade deal by the end of February [1] - The bill aims to establish a state-run investment corporation to manage a planned $350 billion investment pledge to the U.S. [3] - Five related bills have been submitted to the National Assembly, with bipartisan support expected to expedite their passage [3] Government Response - South Korea's finance ministry will keep the U.S. informed about the legislative process, while the trade minister is set to visit Washington for discussions [5] - The presidential office of South Korea has not received any official notice or explanation from the U.S. regarding the tariff announcement [4] Market Reaction - South Korean automakers Hyundai and Kia experienced a decline in early trading following Trump's tariff threats, with Hyundai down 0.1% and Kia down 1.16% [6] - The broader Kospi index rose by 1.9%, while the small-cap Kosdaq index increased by 0.89% [6]