South Korea Probes Free Trade Violations Ahead of U.S. Tariffs

South Korea launches an investigation into potential violations of the free trade agreement with the United States regarding incorrect country-of-origin markings. The move aims to preempt U.S. tariff measures and protect domestic companies, as concerns grow over stricter U.S. customs verifications under President Trump's administration.

South Korea has announced a special investigation into breaches of its free trade agreement with the United States, focusing on the accuracy of country-of-origin markings. The Korea Customs Service (KCS) revealed on Tuesday that they will scrutinize products exported to the U.S. for potential violations as a preventive measure before the implementation of U.S. tariffs under President Donald Trump.

The KCS is determined to tackle companies that falsely label foreign goods as South Korean products in an effort to protect the interests of domestic businesses and maintain the legitimacy of South Korean exports. Authorities intend to impose strict actions against violators.

A KCS spokesperson highlighted concerns over stricter U.S. customs inspections reminiscent of Trump's initial term. The probe will target products that are susceptible to false markings and particularly those subject to U.S. anti-dumping duties, in preparation for reciprocal tariffs expected by April 2.

(With inputs from agencies.)