Lee Seung-heon, counselor for trade, industry and resources at the South Korean Embassy in Washington, presented Seoul's position Thursday at a public hearing hosted by the Office of the United States Trade Representative (USTR) at the U.S. International Trade Commission.
The hearing was part of USTR proceedings on proposed tariff action under Section 301 of the Trade Act of 1974, a legal tool that allows Washington to investigate and respond to foreign trade practices it considers unreasonable, discriminatory or burdensome to U.S. commerce.
USTR has proposed additional duties of 10 percent or 12.5 percent on imports from 60 economies that it says have failed to impose or effectively enforce bans on goods made with forced labor. South Korea was placed in the higher-rate group, along with several other major trading partners.
"Korea reserves its basic position that action against South Korea with regard to the importation of forced labor goods is neither appropriate nor necessary," Lee said.
Lee argued that South Korea has pursued policies to address forced-labor risks both domestically and in global supply chains including sustainability disclosure standards, corporate guidelines and efforts to promote responsible business conduct under the Organization for Economic Cooperation and Development framework.
He also pointed to a joint fact sheet issued after last year's South Korea-U.S. summit, saying Seoul had already reaffirmed its intention to cooperate with Washington in combating imports of goods made with forced labor.
South Korea's argument is twofold. Seoul says it shares Washington's concern over forced labor but disputes USTR's conclusion that South Korea's current system burdens U.S. commerce. It also says that, even if Washington decides to impose tariffs on countries covered by the investigation, South Korea should receive more favorable treatment because of its broader trade cooperation with the U.S.
The South Korean government earlier submitted a written statement to USTR, saying the proposed measure appeared to lack a sufficient factual basis and did not adequately reflect Korea-specific circumstances. Seoul also argued that some of the examples cited by USTR, including concerns related to polysilicon produced with forced labor, did not directly implicate South Korea.
The Korea International Trade Association (KITA) separately asked USTR to defer implementation of the tariff or reduce the proposed rate for South Korea to 10 percent. The group said South Korea strictly prohibits forced labor through domestic laws and international commitments, even if it does not have an import-ban regime identical to the U.S. model.
KITA also requested that goods with low forced-labor risk, or products for which USTR has not identified specific evidence of injury to U.S. commerce, be excluded from any final tariff measure.
The dispute comes as the Trump administration is trying to rebuild its tariff policy after earlier emergency-based global tariffs were challenged in U.S. courts. Washington has increasingly turned to other legal authorities, including Section 122 and Section 301 of the Trade Act, to preserve tariff leverage against major trading partners.
A temporary 10 percent global tariff imposed under Section 122 is expected to expire later this month, increasing attention on how quickly USTR will finalize the Section 301 cases. The forced-labor investigation is one of several trade probes that could shape the next phase of U.S. tariff policy.
USTR is also conducting a separate Section 301 investigation into alleged structural overcapacity in manufacturing sectors, including in South Korea. That inquiry focuses on whether major trading partners are producing more than they can consume domestically and exporting the excess in ways that harm U.S. industry.
For South Korea, the stakes are significant as the export-driven country depends heavily on the U.S. market for products including automobiles, electronics, batteries, steel and machinery. Although USTR has proposed exemptions for certain products, including goods already subject to separate national security tariffs, officials and businesses remain concerned that new duties could complicate the tariff balance reached with Washington last year.
During the hearing, USTR officials asked South Korea to provide more detail on its policies to prevent imports of goods made with forced labor as well as a timeline for specific measures and plans.
It remains unclear whether the public hearing and written submissions will lead USTR to revise the proposed tariff rate for South Korea.
A final decision is expected to be closely watched in Seoul as a test of whether last year's bilateral trade understanding can shield Korea from Washington's latest tariff campaign.
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