Overview
- South Korea's Cabinet approved the enforcement decree on Tuesday, June 9, 2026, moving the special law passed in March into operational rules and setting the act to take effect on June 18, 2026.
- The decree defines 'commercial viability' as a project’s ability to generate enough income to fully cover principal and interest over the investment period, which will be a key gate for approving projects.
- When measuring repayment capacity the decree ties interest calculations to 20-year U.S. Treasury yields plus a spread agreed by Seoul and Washington at each project's start.
- A state-backed Korea-U.S. Strategic Investment Corporation will be formed with a 20-year mandate and a 2 trillion won government seed fund to manage investments, while a trade-minister chaired special committee will vet legal, profit and viability issues for projects.
- The $350 billion pledge is split into $150 billion for shipbuilding cooperation and $200 billion for direct strategic-sector investments in the U.S., and the decree’s implementation will allow project reviews that can trigger the agreed U.S. tariff cuts and reshape supply chains and exporters' access to the U.S. market.