South Korea’s ruling Democratic Party has introduced a bill to establish a special fund that will finance a massive $350 billion investment package in the United States, including $150 billion dedicated to modernizing the U.S. shipbuilding industry.

The bill, developed jointly with the government, fulfills Washington’s primary condition for reducing tariffs on Korean automobiles and auto parts starting November 1.

Under the proposal, the fund would be financed through revenue from South Korea’s overseas assets and the issuance of government bonds on offshore markets. Seoul and Washington finalized the investment mechanism in November after three months of negotiations aimed at preventing pressure on the Korean won.

South Korea has already notified U.S. Commerce Secretary Howard Latnick of the bill’s submission and formally requested the start of the tariff-reduction process. The investment package allocates $250 billion to U.S. strategic industries and $150 billion to shipbuilding modernization — a move that could significantly reshape technological and defense cooperation between the two countries.

The bill is backed by South Korea’s Democratic Party, one of the two major political forces in the country.

The fund will be state-owned and managed by the Korean government through the Ministry of Industry and national financial institutions.