Seoul: The Office of the U.S. Trade Representative (USTR) has released its annual report addressing foreign trade barriers, highlighting issues with South Korea's artificial intelligence (AI) procurement practices, digital regulations, and forced labor concerns.

According to Yonhap News Agency, the 2026 National Trade Estimate Report on Foreign Trade Barriers was published amid ongoing trade investigations by U.S. President Donald Trump's administration. These investigations target South Korea, China, Japan, and other trading partners, potentially leading to new tariffs or other measures. The report underscores concerns that U.S. cloud service providers were excluded from Seoul's science ministry tenders for high-performance graphics processing unit chips and additional cloud resources, which were only accessible to domestic bidders.

Additionally, the report addresses South Korea's digital regulation efforts, particularly new bills requiring foreign content providers to pay network usage fees and restrictions on exporting location-based data and transferring personal data outside Korea. These measures could impact international digital trade and data flow.

The report also highlights labor issues, noting Korea's lack of a ban on importing goods produced with forced or compulsory labor, which allows such goods to enter and compete in the Korean market. Specifically, the U.S. Department of Homeland Security Customs and Border Protection has issued a "withhold release order" on sea salt products from a Korean salt farm due to indications of forced labor.

Furthermore, the USTR report reiterates concerns about South Korea's defense offset trade program. This program requires foreign defense contractors to meet specific conditions for defense industrial cooperation in key government procurement projects. The Korean government has been prioritizing local technology over foreign defense capabilities, impacting international defense trade dynamics.