South Korea approved implementing rules for its strategic investment agreement with the U.S. on Tuesday, establishing criteria for evaluating U.S.-bound projects and creating the institutional framework needed to begin implementing a bilateral investment memorandum of understanding that takes effect on June 18. The Cabinet-approved decree follows passage of the U.S.-ROK Strategic Investment Special Act in March and sets out procedures governing a planned $200 billion investment program that the two countries reached last year.

Under the decree, projects will be considered “commercially reasonable” (상업적 합리성) if expected income distributed to South Korea over a project’s lifetime is sufficient to