of course it corrodes, all ferrous metals corrode whether they are galvanized or not. most galvanized is screwed pipe so I cant comment on your welding procedures. but likely does not increase the corrosion resistance.
your post directly relates to design and desired design life. galvanized iron is not typically used underground, welded or non welded. doesn't mean it cant be done if the conditions warrant. if your soil is not highly corrosive and your pressure is low and you select a thick pipe, properly coated and wrapped and you have a 5-year design life, than go ahead and use galvanized iron - it might be acceptable. if you have corrosive soil, high water table, high pressure gas service, 100-year design life, than use something else.