The ruling Democratic Party introduced a bill to establish a strategic investment fund to manage South Korea's pledged investments in the United States under the two nations' recent trade deal.

DP floor leader Kim Byung-kee introduced the bill, which outlines procedures for establishing the fund and a temporary investment corporation, to the National Assembly on Wednesday.

The investment fund will be financed through operating profit from foreign exchange reserves managed by the government and the Bank of Korea, as well as government-guaranteed bond issuance abroad.

The legislation would provide the legal framework for the memorandum of understanding signed by the two governments on November 14.

The reduction of U.S. tariffs on automobiles and auto parts from 25 percent to 15 percent will apply retroactively from November 1.