South Korea Calls US Tariff Proposal on Forced Labor Concerns 'Inappropriate'

By Song Sang-ho and Park Sungmin

WASHINGTON, July 9 (Yonhap) -- A South Korean official said Thursday that a proposed U.S. tariff on the Asian country over forced labor concerns is "neither appropriate nor necessary," stressing Seoul's commitment to rooting out the use of forced labor domestically and globally.

Lee Seung-heon, counselor for trade, industry and resources at the South Korean Embassy in Washington, reiterated Seoul's position during a public hearing on the proposed tariffs, arguing that should the U.S. decide to press ahead with them, "more favorable treatment" should be given to South Korea.

The Office of the U.S. Trade Representative (USTR) has proposed a 12.5 percent tariff on South Korea and dozens of other economies over their alleged failure to enforce import bans on products made with forced labor, following investigations into them under Section 301 of the 1974 Trade Act.

"Korea reserves its basic position that action against Korea with the importation of forced labor goods is neither appropriate nor necessary," Lee said.

"Even assuming that the U.S. deems it necessary to impose certain level of tariffs to the investigated economies, Korea believes that, taking into account Korea's above-mentioned efforts, more favorable treatment is warranted for Korea than what has been previously proposed," he added.

He pointed out that South Korea has introduced and effectively implemented relevant norms "with the aim of eradicating the use of forced labor domestically and globally."

In particular, he highlighted that Seoul has pursued various policy measures, including the introduction of "Korean Sustainability Disclosure Standards" and the promotion of Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises on Responsible Business Conduct, which he said have facilitated private-sector efforts to eliminate forced labor inputs.

Moreover, he reiterated Seoul's commitment to last year's South Korea-U.S. joint fact sheet in which the Asian country reaffirmed its intention to work together to combat the importation of goods made with forced labor.

The USTR conducted trade investigations into 60 countries, including South Korea, China and Japan, over forced labor concerns, as U.S. President Donald Trump's administration seeks to replace "reciprocal" tariffs that were struck down by the Supreme Court in February.