Seoul Braces for U.S. Section 301 Probe; Early March Seen as Critical Juncture

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By Lee Tae-kyu, Washington Correspondent
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Government determines sufficient grounds for Korea Section 301 investigation...early March will be watershed moment - Seoul Economic Daily International News from South Korea
Government determines sufficient grounds for Korea Section 301 investigation...early March will be watershed moment

Ambassador to the United States Kang Kyung-wha said South Korea will "closely monitor the Trump administration's follow-up measures after the Supreme Court tariff ruling while working to foster a friendly atmosphere for bilateral consultations."

Speaking at a press briefing at the Korean Cultural Center in Washington D.C. on the 24th (local time), Ambassador Kang stated, "Our government plans to respond to the Supreme Court ruling in a manner that best serves our national interests."

The South Korean government reportedly believes there is sufficient grounds for the United States to initiate an investigation against Korea under Section 301 of the Trade Act. U.S. Trade Representative Jamieson Greer stated that investigations would be conducted on major U.S. trading partners, citing discrimination against digital goods and services as a primary reason for launching probes. Given Washington's longstanding concerns about Korea's digital legislation and regulations, officials believe this could serve as the basis for a Section 301 investigation.

Under Section 301, the U.S. can initiate investigations based on discriminatory treatment by foreign countries and immediately begin consultations with the target nation. If issues remain unresolved, Washington can impose tariffs or other measures.

In January, Coupang investors petitioned USTR to launch a Section 301 investigation, claiming damages from discriminatory actions by the Korean government against Coupang. USTR must decide whether to initiate an investigation within 45 days. Seoul understands this deadline falls in early March and will respond based on principles without prejudging the outcome.

The U.S. House Judiciary Committee summoned Harold Rogers, interim representative of Coupang's Korean subsidiary, for testimony on the 23rd. Committee staff had previously requested explanations from the Korean government, which reportedly provided its position on the investigation's background and current status.

Regarding President Trump's visit to China scheduled for March 31 to April 2, Ambassador Kang said, "We are closely monitoring developments with all possibilities in mind, including potential U.S.-North Korea dialogue." However, actual contact between Washington and Pyongyang during the China visit is currently considered unlikely, with no significant movements detected.

On Washington's push to form a "critical minerals trade bloc" to counter China's weaponization of rare earth export controls, Seoul reportedly plans to participate in discussions for a binding trade agreement while working toward terms acceptable to all participating nations. The government will ensure Korea's national interests are fully reflected when making final participation decisions.

Officials are particularly cautious about the "price floor" mechanism for critical minerals that Washington favors. Concerns include increased raw material costs for Korea's key industries—semiconductors, batteries, and electric vehicles—that consume these minerals, as well as potential Chinese retaliation.

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AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.