South Korea to Consider Business Input on Trade Policy | Minister Kim

Seoul is continuing discussions with the United States regarding tariff issues, aiming to preserve favorable export conditions established under their bilateral trade agreement. The commitment to February 23, 2026, comes amidst heightened uncertainty following a U.S. Supreme Court ruling and subsequent actions by U.S. President Donald Trump.

Industry Minister Kim Jung-kwan emphasized the government’s dedication to “amicable” consultations with the U.S., stating that the goal is to ensure the “balance of benefits and favorable export conditions” secured through the Korea-U.S. Tariff agreement remain intact. Kim made these remarks during a meeting with representatives from Korean businesses, convened to strategize a response to evolving U.S. Trade policies.

The recent U.S. Supreme Court decision struck down President Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to justify tariffs imposed on Korea and other trading partners, including the so-called “reciprocal” tariffs. Following the ruling, Trump announced a temporary global tariff of 15 percent and signaled his intention to implement “new and legally permissible” duties to replace those invalidated by the court.

Minister Kim acknowledged the expectation that the U.S. Administration will “aggressively” pursue alternative measures to maintain its tariff policies, potentially utilizing Sections 122 and 301 of the Trade Act of 1974. This suggests a likely increase in global trade uncertainties, prompting the Korean government to bolster support for local businesses seeking to enhance their global competitiveness.

The situation is particularly sensitive given recent diplomatic efforts to address U.S. Concerns regarding the implementation of a bilateral trade deal. Earlier in January, Minister Kim Jung-kwan traveled to Washington to meet with U.S. Commerce Secretary Howard Lutnick to clarify Seoul’s position on the deal, which had been delayed due to legislative processes in South Korea. The U.S. President had threatened to raise tariffs on South Korean goods, citing the delay in passing bills to enact the agreement, which included a commitment from Seoul to invest $350 billion in the U.S.

According to reports from January 28, 2026, Kim explained to Lutnick that the delay stemmed from the South Korean parliament’s legislative schedule, with bills related to the trade deal slated for consideration during their first session of the year in February. He reportedly reassured Lutnick of the South Korean government’s ongoing commitment to cooperation and investment in the United States.

The initial tariff threat from President Trump involved raising duties from 15 percent to 25 percent. However, he later indicated a willingness to find a resolution, stating, “we’ll work something out with South Korea.” This shift in tone, while offering a degree of optimism, does not diminish the underlying concerns about potential trade barriers.

Further discussions are planned, with Trade Minister Yeo Han-koo scheduled to meet with U.S. Trade Representative Jamieson Greer to continue negotiations. The focus will likely remain on addressing U.S. Concerns about the legislative process and reaffirming South Korea’s investment commitments.

The Korean government’s strategy centers on maintaining open communication with the U.S. And proactively addressing any concerns raised by the U.S. Administration. The emphasis on “maximizing national interest” suggests a willingness to negotiate while safeguarding the benefits secured through the existing trade agreement. The situation highlights the delicate balance between maintaining strong economic ties with the U.S. And protecting the interests of Korean businesses in a volatile global trade environment.

The potential implementation of Sections 122 and 301 of the Trade Act of 1974 represents a significant challenge. Section 122 allows the U.S. To impose tariffs or other trade restrictions if it determines that another country’s actions are unfairly impacting U.S. Commerce. Section 301 addresses unfair trade practices and allows for retaliatory measures. The use of these provisions could lead to further escalation in trade tensions between the two countries.

The Korean government’s response will be closely watched by businesses and investors, as any significant changes to the trade relationship could have substantial implications for the Korean economy. The focus on boosting the global competitiveness of Korean businesses is a key element of the government’s strategy to mitigate the potential impact of increased trade uncertainties.