South Korea will sign a strategic investment agreement with the United States, and a joint bill to fund its implementation will be submitted this month.

Industry Minister Kim Jung-kwan said Tuesday during a Cabinet meeting chaired by President Lee Jae Myung that his department was coordinating with the finance ministry to ensure the swift implementation of the memorandum of understanding.

He added that the reduced 15 percent U.S. tariff on Korean cars will apply retroactively from November 1.

Kim cautioned that if South Korea fails to fulfill its investment commitments, Washington could restore higher tariffs, stressing the need for thorough risk management.

He also said Seoul must avoid policies that unfairly disadvantage U.S. firms, in compliance with the recent deal.

The minister vowed to identify U.S.-bound investment projects under the MOU and convene a Korea–U.S. Free Trade Agreement council to oversee the implementation of the nontariff agreements.