The Korean government told a U.S. Trade Representative (USTR) public hearing that its industrial sector is currently undergoing voluntary restructuring, at a session convened to discuss structural overcapacity issues.
At the Section 301 trade law investigation hearing held by the USTR on Wednesday at the U.S. International Trade Commission (ITC) office in Washington, D.C., a Korean government official said, "Korea's industrial structure is based on market economy principles." The official also explained that the government is providing institutional support to back industry restructuring, according to sources. Specifically, measures including the Corporate Rehabilitation Act implemented in 2016 and the Enforcement Decree of the Special Act on Strengthening Competitiveness and Supporting the Petrochemical Industry, approved at a Cabinet meeting this April, are being used to encourage voluntary restructuring in the petrochemical sector.
Regarding Korea's trade surplus with the United States, the official emphasized that the industries of the two countries are in a complementary relationship. The official also highlighted that cooperation between the two nations in manufacturing and other sectors is expected to expand based on the Korea-U.S. strategic investment memorandum of understanding (MOU) signed last year, according to sources.
The hearing is part of the Section 301 investigation that the United States launched to prepare alternative tariffs following the Supreme Court ruling that reciprocal tariffs were unlawful. Once the investigation concludes, the U.S. is expected to decide on response measures including tariff imposition.
