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U.S. Raises Concerns Over South Korea’s Digital Regulations Amid Tariff Hike

Seoul: The South Korean government has received a letter from the United States expressing concerns over Korea's push for digital regulations, the industry ministry said Tuesday. This development coincides with U.S. President Donald Trump's announcement to raise reciprocal tariffs on South Korea back to 25 percent, fueling speculation about the underlying reasons for this decision.

According to Yonhap News Agency, the letter was addressed to Science Minister Bae Kyung-hoon approximately two weeks ago and forwarded to the Ministry of Trade, Industry and Resources for reference. Although the industry ministry initially withheld details, citing diplomatic protocol, it later clarified that the letter primarily focused on digital regulation issues in Korea and was not directly linked to Trump's claims of Korea not fulfilling its part of the trade agreement finalized in October.

Earlier, President Trump stated that tariffs and auto duties on Korea would be increased to 25 percent from the previous 15 percent, attributing this to a delay in the Korean National Assembly's approval of a special bill meant to support Korea's investment commitment to the U.S. This bill, submitted by the ruling Democratic Party in November, is still pending passage.

In response, Finance Minister Koo Yun-cheol urged rival parties to expedite the bill's approval during a closed-door meeting with lawmakers. Rep. Lim Lee-ja of the main opposition People Power Party quoted Koo as saying that the government has not yet received any official communication and expects further clarity over the weekend.

Industry Minister Kim Jung-kwan, currently in Canada, is expected to travel to Washington for discussions with U.S. Commerce Secretary Howard Lutnick. Observers suggest that Trump's actions may also be intended to pressure Seoul over its digital regulation initiatives and the ongoing investigation into Coupang Inc., a U.S.-listed e-commerce firm, concerning a major data breach.

U.S. lawmakers and investors have labeled the Coupang investigation as "discriminatory," while the State Department expressed significant concerns last month about Seoul's regulatory measures potentially impacting online platform businesses. The issue of Coupang was also addressed during a meeting between Korean Prime Minister Kim Min-seok and U.S. Vice President JD Vance last week, where both sides agreed to manage the situation to prevent misunderstandings between their governments.

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