South Korea’s Customs Service announced on Tuesday that it will launch an investigation into potential violations of the free trade agreement (FTA) with the United States concerning country-of-origin markings. This move comes as U.S. President Donald Trump’s administration prepares to implement new tariffs.
South Korea is one of only three countries in the Asia-Pacific region, and one of 20 worldwide, to have an FTA with the U.S., under which nearly all tariffs are eliminated on goods traded between the two nations.
The Korea Customs Service (KCS) stated that it would focus on products exported to the U.S. to ensure they comply with the correct country-of-origin labeling. Authorities warned that companies caught misrepresenting foreign products as South Korean goods would face strong penalties, aiming to protect domestic businesses and uphold the integrity of South Korean exports.
“We are taking proactive steps to shield local companies, especially after past experiences during the first Trump administration, which raised concerns about stricter U.S. verifications following tariff hikes,” said a KCS spokesperson.
Products most at risk for false labeling—such as those subject to U.S. anti-dumping tariffs or under close scrutiny by U.S. customs—will be prioritized for inspection, the KCS added.
The Trump administration has indicated that it will introduce reciprocal tariffs on major trading partners, including South Korea, by April 2. This comes after the U.S. imposed substantial tariffs on imports from China, Canada, and Mexico for non-compliance with their respective trade agreements.
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