UPSC Prelims Practice Questions — South Korea Parliament establishes committeeto fast-track U.S. investment bill

Q1. The 'Korea–U.S. Strategic Investment Corporation', recently seen in the news, refers to which one of the following?

  • A. A bilateral sovereign wealth fund jointly capitalised by the governments of South Korea and the United States to invest in third-country infrastructure
  • B. A state-run South Korean corporation established to operationalise Seoul's $350 billion investment commitment in U.S. strategic industries
  • C. A U.S. Treasury-managed entity that channels Korean private capital into American defence and shipbuilding projects
  • D. A joint venture of South Korean chaebols underwritten by KORUS FTA provisions for cross-border technology transfer

Q2. With reference to the $350 billion South Korean investment package to the United States enabled by the 2026 special legislation, consider the following sectors: 1. Shipbuilding 2. Semiconductors 3. Defence equipment manufacturing 4. Quantum computing Which of the above is/are correctly identified as priority strategic investment sectors under the package?

  1. Shipbuilding
  2. Semiconductors
  3. Defence equipment manufacturing
  4. Quantum computing
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4

Q3. Within the headline $350 billion South Korean investment commitment to the United States under the 2025 trade framework, which one of the following accounts for the single largest allocation?

  • A. Shipbuilding cooperation
  • B. Strategic sectors collectively (semiconductors, pharmaceuticals, critical minerals, energy, AI and quantum)
  • C. Liquefied natural gas (LNG) and energy product purchases
  • D. Critical minerals supply-chain partnership

Q4. With reference to the evolution of U.S.–South Korea tariff and investment arrangements in 2025–2026, consider the following statements: 1. Under the July 2025 framework deal, tariffs on South Korean goods entering the U.S. were reduced from a threatened 25 per cent to 15 per cent. 2. In late January 2026, the U.S. announced reversion of tariffs on certain South Korean goods back to 25 per cent, citing slow legislative progress in Seoul on enabling the investment pledge. 3. The $350 billion investment pledge under the 2025 framework was to be fully disbursed within the first fiscal year of the deal, with no annual cap. Which of the statements given above is/are correct?

  1. Under the July 2025 framework deal, tariffs on South Korean goods entering the U.S. were reduced from a threatened 25 per cent to 15 per cent.
  2. In late January 2026, the U.S. announced reversion of tariffs on certain South Korean goods back to 25 per cent, citing slow legislative progress in Seoul on enabling the investment pledge.
  3. The $350 billion investment pledge under the 2025 framework was to be fully disbursed within the first fiscal year of the deal, with no annual cap.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. In South Korea, the special legislation operationalising the $350 billion strategic investment package in the United States is implemented primarily through which one of the following ministries?

  • A. Ministry of Foreign Affairs
  • B. Ministry of Economy and Finance
  • C. Ministry of Trade, Industry and Resources (MOTIE)
  • D. Ministry of National Defense