Seoul: The Republic of Korea will "temporarily" establish a strategic investment corporation to manage a special fund for the country's $350 billion investment in the United States. This development follows an agreement reached under a bilateral tariff deal finalized last month, as reported by Yonhap News Agency on Wednesday.

According to Emirates News Agency, the proposed corporation, tentatively named Korea-US Strategic Investment Corp., will operate for a maximum of 20 years. This will be under a special bill submitted by the ruling Democratic Party to support Seoul's investment plans in the US, as stated by the finance and industry ministries in a joint press release.

The government aims to submit the bill within this month after President Lee Jae Myung and US President Donald Trump finalized the details of Seoul's $350 billion investment pledge. This pledge was made in exchange for lower US tariffs, during their summit in Gyeongju on October 29.

Under the final terms, the investment will include $200 billion in cash installments, with an annual cap of $20 billion, and an additional $150 billion for bilateral shipbuilding cooperation. In return, the US administration agreed to reduce the 25 percent tariffs on Korean automobiles to 15 percent. This reduction will be applied retroactively from the start of the month the bill is submitted.