World February 4, 2026

Seoul Says It Is Working to Honor U.S. Investment Pact as Tariff Threats Remain Untriggered

Top trade envoy returns from Washington, stresses good-faith implementation as tariff notice has not been published

By Avery Klein
Seoul Says It Is Working to Honor U.S. Investment Pact as Tariff Threats Remain Untriggered

South Korea's chief trade representative said Washington has not yet taken the administrative step required to raise tariff rates on South Korean goods and expressed confidence that such action is unnecessary while Seoul moves to implement the investment commitments in their bilateral trade agreement. Lawmakers in Seoul have agreed to target March 9 to finalise the investment bill.

Key Points

  • U.S. administration has not yet published higher tariff rates for South Korean goods in the U.S. Federal Register, the administrative step needed for those rates to take effect - impacts trade and export-dependent businesses.
  • South Korea says it is making 'good faith' efforts to implement a trade deal that includes $350 billion in U.S. investments - relevant to cross-border investment flows and investor confidence.
  • South Korea's parliament aims to finalise an investment bill by March 9 following an agreement between the ruling and main opposition parties - affects the legislative timetable and implementation certainty.

South Korea's senior trade envoy said on Thursday that the United States has not yet taken the administrative step required to put higher tariffs on South Korean goods into effect, and he indicated he does not view such a step as necessary while Seoul advances to fulfil the terms of the two countries' trade agreement.

President Donald Trump last week threatened to raise tariffs on imports from South Korea, saying the move would respond to delays in putting into force a deal in which South Korea pledged to direct $350 billion of investment to the United States. The trade envoy, Yeo Han-koo, returned from discussions in Washington with U.S. officials and members of Congress and spoke to reporters after landing back in South Korea.

Yeo said Washington had not yet completed the administrative act of publishing higher tariff rates in the U.S. Federal Register, a step required for those rates to become an official administrative action. He added that South Korea believes publication is unnecessary because Seoul is making a "good faith" effort to implement the investment commitments set out under the agreement.

Yeo said Seoul was prepared to "faithfully and quickly implement" the trade deal.

Domestically, South Korea's legislature is moving to codify the investment commitments. Lawmakers from the ruling party and the main opposition agreed on Wednesday to aim to finalise by March 9 a bill that would enact the U.S.-bound investments specified in the trade agreement. On the urgency of the parliamentary timetable, Yeo observed that "Passing the investment bill as soon as possible is most important at this stage."

The envoy's comments underscore a diplomatic effort to reassure Washington that Seoul is taking concrete steps to meet its pledges, while also noting that the formal trigger for higher U.S. tariffs has not been enacted through the Federal Register. South Korea's timetable for legislative approval will determine how quickly those commitments can be formalised.

Questions remain about whether the legislative process will meet the March 9 target and whether that timing will affect the U.S. administration's decisions on tariffs. For now, Seoul is positioning its actions as motivated by good-faith compliance rather than by a legal obligation resulting from a published administrative measure in the United States.


What are the best investment opportunities in 2026? The best investments start with better data. Relying solely on intuition has its place, but when enthusiasm is mistaken for insight it can produce costly errors or paralysis. A professional research subscription that combines institutional-grade data with AI-driven analysis can help investors identify more opportunities without guaranteeing winners. Use better data, then make your own decisions.

Risks

  • If the investment bill is delayed beyond the March 9 target, the U.S. administration could opt to pursue tariff actions, creating uncertainty for exporters and trade-exposed industries.
  • Although higher tariff rates have not been published in the Federal Register, the threat of their imposition remains, leaving exporters and financial markets exposed to policy shifts.
  • The outcome depends on the legislative process in Seoul and on U.S. administrative decisions; any slippage or change in intent could alter investment and trade expectations.

More from World

’Today’ Co-Host Urges Contact After Her 84-Year-Old Mother Disappears Near Tucson Feb 4, 2026 Taiwan President Says Taipei-Washington Ties 'Rock-Solid' After Xi-Trump Call Feb 4, 2026 UN: Expiration of New START Is a 'Grave Moment' for Global Security Feb 4, 2026 U.S. Unseals Expanded Terrorism Indictment in Killing of Two Israeli Diplomats in Washington Feb 4, 2026 Justice Department Reassigns Lawyer After Frustrated Remarks in Minnesota Immigration Hearings Feb 4, 2026