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South Korea Defends Trade Practices in Formal Response to U.S. Probe

The South Korean government has formally submitted an opinion letter to the U.S. Trade Representative regarding ongoing probes into alleged unfair trade practices. The letter defends South Korea's market-based industrial structure and its efforts to combat forced labor in line with international conventions. The USTR investigations focus on structural excess capacity and imports linked to forced labor under Section 301. Meanwhile, South Korean stocks rallied, with the KOSPI closing above the 6,200-point mark for the first time since February.

Key Points: S. Korea Submits Formal Opinion on U.S. Trade Probes

  • Formal response to USTR probes
  • Defense of market economy principles
  • Highlighting anti-forced labor efforts
  • Inquiry under Section 301 Trade Act
  • KOSPI closes above 6,200 points
2 min read

S. Korea submits formal opinion letter on USTR trade probe

South Korea submits formal opinion to USTR, defending its market economy and anti-forced labor efforts amid U.S. trade investigations.

"South Korea's industrial structure is based on the principle of the market economy - Ministry of Trade, Industry and Resources"

Seoul, April 16

The Seoul government has submitted a formal opinion letter on the United States' ongoing probes into South Korea and other nations involving what it calls "unfair" trade practices related to structural excess production and forced labour, officials said on Thursday.

The letter was submitted by the Ministry of Trade, Industry and Resources to the office of the US Trade Representative (USTR) ahead of public hearings on the ongoing trade investigation scheduled to begin next month, according to the ministry officials.

In it, the government explained that South Korea's industrial structure is based on the principle of the market economy while highlighting the country's ongoing efforts to restructure industries facing a global oversupply, such as petrochemical and steel.

It also stressed that South Korea has been working to eradicate forced labour under domestic laws and International Labor Organization conventions that prohibit forced labour, according to the officials.

Last month, the office of USTR launched consecutive trade inquiries into South Korea and other major economies to uncover what it calls "unfair" trade practices related to structural excess capacity and production, and their failure to ban forced labour-linked imports under Section 301 of the 1974 Trade Act.

The move appears to be aimed at restoring trade-related measures Washington had imposed on its trading partners before the U.S. Supreme Court struck down U.S. President Donald Trump's "reciprocal" tariffs, according to Seoul officials.

Meanwhile, South Korean stocks rose for the third consecutive session on Thursday, closing above the 6,200-point mark for the first time since the outbreak of the U.S.-Iran war amid hopes for a second round of their peace talks. The local currency gained against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 134.66 points, or 2.21 per cent, to finish at 6,226.05. It is the first time that the KOSPI has closed over the 6,200 level since Feb. 27, when the index stood at 6,244.13, a day before the United States and Israel conducted air strikes on Iran. The KOSPI's all-time closing high stands at 6,307.27 set on February 26.

- IANS

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Reader Comments

P
Priya S
The focus on forced labour is important. Global supply chains must be ethical. India has also been working on strengthening labour laws. Hope this probe leads to constructive dialogue, not just punitive tariffs. 🇮🇳
R
Rohit P
US always uses these "investigations" as a tool for economic pressure. Remember the steel and aluminum tariffs? We need more multilateral forums like RCEP to counter such unilateral actions. Good on South Korea for submitting a formal response.
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Sarah B
While I understand the need for fair trade, the timing feels political. The article mentions it's about restoring Trump-era measures. This kind of policy uncertainty hurts global business sentiment, including for companies here in India planning investments.
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Vikram M
The stock market reaction is telling! KOSPI rising shows investor confidence in Seoul's handling of the situation. Our Sensex also reacts to global trade tensions. Hope our trade ministers are taking notes on how to engage proactively. 📈
K
Karthik V
"Structural excess production" is a complex issue. Countries like China are often cited, but South Korea? Their industries are advanced. This seems like a broader strategy. India must ensure its manufacturing push ('Make in India') isn't viewed through the same lens. We need clear communication on our capacities.
N
Nisha Z

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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