Seoul: South Korea's top trade negotiator pledged on Thursday to continue efforts to protect the nation's trade interests following the United States' announcement of a trade investigation into 16 economies, including South Korea, China, and Japan, over allegedly "unfair" trade practices.
According to Yonhap News Agency, Trade Minister Yeo Han-koo made the commitment during a press briefing after the U.S. Trade Representative (USTR) announced the investigation under Section 301 of the 1974 Trade Act. The probe aims to identify "unfair" trade practices related to "structural" excess capacity and production. Yeo emphasized the importance of consultations with the U.S. to maintain the balance of profits secured through the Korea-U.S. tariff agreement and ensure treatment no less favorable than that extended to other major countries during the U.S. inquiry.
The USTR office has officially notified the Korean government about the probe, which appears to be an attempt to restore previously imposed trade measures that were struck down by the U.S. Supreme Court. Before last month's ruling, South Korea faced 15 percent reciprocal duties, now replaced by a 10 percent global tariff.
"The U.S. investigation under Section 301 is a structural probe targeting a lot of countries, not only Korea," Yeo stated, highlighting that South Korea's trade surplus with the U.S. is largely due to Korean firms investing in American manufacturing industries. The Seoul government plans to submit a written opinion on the USTR probe by April 15, following consultations with domestic industries, and actively participate in public hearing sessions scheduled by the USTR from May 5.
Yeo also addressed other pending trade issues with the U.S., such as the investigation into a data leak involving U.S.-listed e-commerce firm Coupang Inc., clarifying that the current USTR investigation is unrelated. However, he acknowledged the need to manage digital regulation issues that could potentially lead to trade conflicts.
Meanwhile, the National Assembly passed a special bill supporting South Korea's $350 billion investment pledge to the U.S. under their bilateral trade deal. The legislation's swift passage followed an agreement between rival parties after former President Trump threatened to increase reciprocal duties on Korea due to delays in the legislative process.
Industry Ministry Kim Jung-kwan stated that the passage of the special bill demonstrates the government's and National Assembly's commitment to upholding the tariff agreement between the two countries and deepening their strategic partnership. The government plans to promptly promulgate the legislation and engage with Washington on the implementation of the memorandum of understanding on strategic investment between Korea and the U.S. Seoul has been reviewing potential investment projects in the U.S. since last month to uphold the trade deal.