President Lee Jae Myung removed Trade Minister Yeo Han-koo from office effective midnight, according to the Ministry of Trade, Industry and Energy. No successor was immediately named and the government did not disclose a reason for the dismissal.
The use of a compulsory dismissal for a vice minister-level political appointee was unusual, particularly because Yeo had remained at the center of Korea's U.S. trade negotiations until immediately before his removal.
"The appointment and dismissal of political appointees fall within the appointing authority's powers and political judgment, and it would be inappropriate for the ministry to comment on the background," the ministry said, adding that it would work to prevent disruption to ongoing trade issues.
Yeo's departure comes at an awkward moment for Seoul.
Washington last month imposed new Section 301 tariffs on South Korean imports after the U.S. Trade Representative concluded that Korea had failed to impose and effectively enforce a prohibition on imports produced with forced labor. Korea is among economies subject to duties of up to 12.5 percent, depending on the product and its existing most-favored-nation tariff.
A separate USTR investigation into structural excess manufacturing capacity also includes South Korea and could produce additional trade measures. The investigation covers 16 economies and is examining whether policies contributing to excess production burden U.S. commerce.
At the same time, Seoul is under pressure to implement the investment side of the bilateral trade agreement reached with the Trump administration. Under the deal, South Korea committed an additional $200 billion to strategic U.S. investment projects in return for a framework that set a 15 percent tariff rate on qualifying Korean goods.
The dispute surrounding U.S.-listed e-commerce company Coupang has added another source of friction. Korean regulators imposed a record penalty on the company over a massive customer-data breach, while U.S. politicians and investors have raised concerns that the company was treated unfairly. Seoul has rejected allegations of discriminatory enforcement.
There is no disclosed evidence linking any of those trade issues to Yeo's dismissal.
His sudden removal nevertheless creates a potential continuity problem because he had served as the working-level commander of Seoul's negotiations with Washington since returning to government last year.
Yeo previously headed Korea's trade negotiations under the Moon Jae-in administration and was appointed again by Lee in June 2025 as the new government prepared for tariff negotiations with the Trump administration.
He subsequently led the government task force coordinating the U.S. negotiating package across trade, industry and energy and participated in repeated talks with U.S. Trade Representative Jamieson Greer and other senior American officials.
As recently as Wednesday, Yeo attended a National Assembly committee meeting, and the industry ministry's schedule released Friday still listed him for Cabinet and trade-related meetings next week, underscoring the abruptness of the decision.
The ministry plans to operate an emergency system led by Deputy Minister for Trade Park Jeong-sung until a successor is chosen, seeking to limit disruption to negotiations with Washington and other pending trade matters.
AJP Takeaways:
- President Lee abruptly dismissed Trade Minister Yeo Han-koo without publicly giving a reason or immediately naming a successor.
- The timing raises continuity risks: Korea is dealing with new U.S. Section 301 tariffs, another investigation into manufacturing overcapacity and implementation of its $200 billion U.S. investment commitment.
- No link to Yeo's trade performance has been established. The industry ministry said it would use an emergency system led by Deputy Minister Park Jeong-sung to limit disruption.
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