Home > National > Politics

Top office says $350B U.S. deal 'not legally binding,' doesn't require parliamentary approval

Published: 05 Nov. 2025, 12:47 Updated: 05 Nov. 2025, 16:55

Kim Yong-beom, the presidential director of national policy, briefs reporters at the APEC Media Center in Gyeongju, North Gyeongsang, on Oct. 29. [JOINT PRESS CORPS]

The presidential office said Wednesday that the memorandum of understanding (MOU) on tariffs between Korea and the United States does not require ratification by the National Assembly.

“The tariff MOU is not legally binding and therefore does not fall under the category requiring parliamentary consent,” said a senior official at the presidential office. Article 60 of the Constitutional Law grants the National Assembly the right to consent to treaties that impose significant financial burdens on the state or involve legislative matters. The presidential office determined that the MOU does not constitute a treaty and thus does not need ratification.

In addition to legal review, the urgency of the agreement reportedly played a role in the decision. “If we pursue parliamentary ratification, it could take longer than expected,” said a key Democratic Party (DP) official. “That would delay tariff reductions and increase the burden on businesses.”

According to Article 13 of the Act on the Conclusion Procedure and Implementation of Commercial Treaties, submitting a request for parliamentary ratification also requires accompanying measures to support domestic industries and secure funding — steps that take time to prepare. If political conflict arises over the ratification, further delays are likely. In fact, the Korea-U.S. free trade agreement, submitted to the Assembly in 2007, was only passed after four years and two months amid partisan strife. Although ratification requires only a simple majority by law, it is customary to pass such resolutions with bipartisan consensus.

With this final decision, the government will not seek parliamentary ratification but instead push for the enactment of a special law to establish a $350 billion Korea-U.S. investment fund. The special legislation will specify the legal basis and operational framework for the fund. DP floor deputy chief Moon Jin-seog also said Tuesday that “using foreign reserves to fund the investment requires a legal basis, making a Korea-U.S. investment law necessary.”

To expedite the process, the government plans to have the bill introduced through a lawmaker’s initiative. Under the agreement, the United States will retroactively apply a 15 percent tariff reduction on Korean automobiles and other goods starting from the first day of the month in which Korea submits the bill to the National Assembly. The government aims to have the legislation introduced within this month.

Jang Dong-hyeok, leader of the People Power Party, speaks at a budget meeting at the Daejeon City Hall in Daejeon on Nov. 5. [NEWS1]

Still, the administration and ruling party face political backlash from the opposition.

“It’s hard to understand the arrogance of negotiating a deal that places a burden of nearly 10 million won [$6,900] per person and then refusing to seek parliamentary approval,” said Jang Dong-hyeok, leader of the People Power Party. The party argues that the customs agreement functions effectively as a treaty and therefore requires Assembly ratification under the Constitution. The opposition is also demanding that the agreement be disclosed before any special legislation is introduced.

“Regardless of whether ratification is required, we believe it is necessary to provide sufficient explanation and briefing to the Assembly on the outcome of the customs negotiations,” said a presidential official. The office expects the opposition to support the agreement in the national interest.

The presidential office is in the final stages of releasing a joint fact sheet with the United States, which serves as a precursor to the MOU. Deputy Prime Minister for Economic Affairs Koo Yun-cheol said on KBS Radio Wednesday, “The economic portion of the fact sheet is almost complete. Once the security portion is finalized, we expect to sign the fact sheet together with the United States.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YOON SUNG-MIN [[email protected]]