South Korea Forms Task Force to Counter US Trade Probes on Excess Capacity and Forced Labor

South Korea Forms Task Force to Counter US Trade Probes on Excess Capacity and Forced Labor​

Seoul, March 20: South Korea’s Ministry of Trade, Industry and Resources on Friday announced the formation of a joint task force with private sector stakeholders to coordinate a response to ongoing trade investigations initiated by the United States.

US Launches Section 301 Investigations into Multiple Economies​

Earlier this month, the Office of the United States Trade Representative (USTR) launched a series of trade inquiries targeting South Korea and other major economies. The investigations focus on what the US describes as unfair trade practices linked to structural excess capacity, production imbalances, and allegations of forced labor.

The probes have been initiated under Section 301 of the Trade Act of 1974, a key mechanism used by the US to examine and respond to foreign trade practices deemed harmful to its economic interests.

Task Force to Coordinate Government and Industry Response​

The newly established task force will be led by the trade ministry and include officials from relevant government bodies, private industry representatives, and trade experts. Its mandate is to manage South Korea’s response to the US investigations, including preparing written submissions and participating in public hearings.

Government Signals Vigilance Amid Possibility of Further Probes​

Speaking at a trade strategy meeting on Friday, Trade Minister Yeo Han-koo indicated that the US move could be aimed at reinstating trade measures that had previously been imposed before being struck down by the US Supreme Court. These include tariffs introduced under the administration of President Donald Trump.

Yeo stated that the government will remain vigilant and operate under the assumption that additional trade investigations could follow.

US Expands Probe to 60 Economies​

The USTR has extended its investigations to around 60 economies, including South Korea, China, Japan, India, Indonesia, the United Kingdom, Australia, Canada, and Taiwan. The move comes as the US administration explores new tariff measures following the recent court decision that invalidated earlier reciprocal tariffs.

Focus on Forced Labor Compliance​

A key aspect of the investigation will assess whether the countries involved have taken adequate steps to prevent the import of goods produced through forced labor. This element adds a compliance dimension to the broader trade concerns raised by the US.

South Korea Aims to Safeguard Competitive Position​

Trade Minister Yeo emphasized that while the broader framework of the US-South Korea trade agreement is expected to remain intact, the government will work closely with stakeholders to ensure that the outcome of the investigations does not place South Korea at a disadvantage compared to other major economies.