Director-General Yeo: "Cannot Rule Out Possibility of Expanded U.S. Section 301 Investigation"

Tariff Uncertainty Grows After IEEPA Ruling
"Preparing for Additional Investigations in Digital and Other Sectors"
South Korea-U.S. FTA Joint Committee Also in the Works

Hyeon-gu Yeo, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy (far right), is delivering opening remarks at the 55th Trade Promotion Committee held at the Korea Trade Insurance Corporation's main conference room in Jongno-gu, Seoul. Ministry of Trade, Industry and Energy.

Hyeon-gu Yeo, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, stated that he "cannot rule out the possibility of additional investigations" regarding the potential expansion of the U.S. Trade Act Section 301 investigation, and announced the activation of a whole-of-government response system. As uncertainty over tariff policy grows following the U.S. Supreme Court's ruling that the International Emergency Economic Powers Act (IEEPA) was violated, this signals an intention to raise the level of response to all pending trade issues between South Korea and the United States.

On March 20 in Seoul, Director-General Yeo presided over the 55th Trade Promotion Committee meeting and a joint public-private task force meeting on the U.S. Section 301 issue, reviewing response plans to U.S. trade measures. The meetings were attended by representatives from relevant ministries, economic organizations, industry associations, and experts, who discussed a wide range of tariff and non-tariff issues.

Director-General Yeo said, "Recently, the United States has launched a Section 301 investigation citing overproduction and forced labor. It is believed that the main purpose is to restore tariffs to the levels set in previous trade agreements following the IEEPA ruling." He added, "We cannot rule out the possibility that the scope of the investigation may expand to other areas such as digital sectors. Relevant ministries must remain vigilant and respond in close coordination."

The government plans to systematically submit written opinions and respond to public hearings in line with the U.S. investigation procedures. The aim is to institutionalize a continuous joint public-private response system as trade risks are spreading through multi-layered structures rather than single issues.

Efforts to address non-tariff issues are also being pursued in parallel. Director-General Yeo said, "We have been in ongoing communication with the U.S. regarding non-tariff agreements based on the South Korea-U.S. joint fact sheet," and noted that "we are currently coordinating the timing of the South Korea-U.S. Free Trade Agreement (FTA) Joint Committee meeting." He added, "On this occasion, we will adopt an implementation plan for non-tariff areas to enhance the stability of the trade environment."

The government has presented the maintenance of a balanced interest based on existing South Korea-U.S. tariff agreements and ensuring treatment no less favorable than that accorded to other major countries as its future response principles. Based on this, the plan is to comprehensively manage both tariff and non-tariff issues in order to minimize uncertainty for Korean companies.

This content was produced with the assistance of AI translation services.