Commercial Reasonableness
상업적 합리성
An administrative criterion codified in the 2026 enforcement decree of the Korea-US Strategic Investment Special Act, used to assess whether a state-backed overseas strategic investment project merits public financing and guarantees. Under the decree, commercial reasonableness is satisfied when the total expected income allocated to Korea over the project's lifetime fully covers both principal and interest on the investment. The interest rate is set at the 20-year US Treasury yield at the time of investment plus an additional spread agreed between Seoul and Washington. The decree, however, also permits separate review of a project's impact on 'national security or supply chain stability,' creating a pathway for financially unviable projects to proceed on security grounds.
Sources
- view.asiae.co.kr 아시아경제, 2026.06.09: 시행령의 핵심은 대미 투자 사업의 추진 여부를 판단할 잣대인 '상업적 합리성'의 기준을 명문화한 점. 상업적 합리성을 개별 대미투자 사업의 예상 존속기간 동안 한국으로 분배되는 총 예상 수입이 해당 투자의 원리금을 전부 충당할 수 있는 경우로 규정.
- thedailyeconomy.kr The Daily Economy, 2026.06.09: 수익성이 충분하지 않은 사업이라도 국가 전략적 필요성이 인정될 경우 별도 검토가 가능하도록 한 조항 확인.
- en.yenisafak.com Yeni Şafak/AA, 2026.06.09: A project will be considered viable if expected returns allocated to South Korea are sufficient to cover both principal and interest over the investment period. Interest calculations based on 20-year US Treasury yields plus agreed spread.
- clsbluesky.law.columbia.edu Columbia Law School Blue Sky Blog, 2025.12.12: Steven L. Schwarcz, 'Commercial Reasonableness' — the standard derives its meaning from commonly accepted business customs and practices; its application as a gateway criterion in statutory schemes discussed.