Approximately two weeks ago, the U.S. government delivered a letter to South Korea urging the implementation of trade agreements outlined in the joint fact sheet signed last November between the two nations.
This communication is viewed as a preemptive warning, preceding President Donald Trump’s statement on Monday. Trump declared that he would raise tariffs on South Korean automobiles to pre-agreement levels, citing the South Korean National Assembly’s failure to proceed with necessary legal steps for implementing the U.S.-Korea trade agreement.
According to relevant departments on Wednesday, Jim Heller, the U.S. Chargé d’Affaires in South Korea, sent a letter on January 13 to Deputy Prime Minister and Minister of Science and Information and Communication Technology (ICT), Bae Kyung-hoon, urging compliance with the U.S.-Korea Joint Fact Sheet.
The letter included references to recipients such as Minister of Trade, Industry and Energy Kim Jung-kwan, Foreign Minister Cho Hyun, and Chairman of the Fair Trade Commission Ju Biung-Ghi.
A representative from the Ministry of Trade confirmed receipt of the U.S. letter addressed to the Deputy Prime Minister of Science and ICT, with the Ministry of Trade also receiving it as a reference. However, they stated that specific contents of the letter, being diplomatic communications between the two governments, could not be disclosed.
Lee Moon-bae, Deputy Spokesperson for the Ministry of Foreign Affairs, also confirmed during a regular briefing that the U.S. Chargé d’Affaires sent a letter to the Minister of Science and ICT, with the Foreign Ministry receiving it for reference. He added that they could not confirm the specific details of the letter.
Reports suggest that the main content of this letter urges the implementation of digital trade agreements established in the joint fact sheet from last November.
A representative from the Ministry of Trade noted that the letter primarily addresses South Korea’s digital-related issues, adding that they understand it is not directly related to the implementation of the investment memorandum of understanding (MOU).
The joint fact sheet included a commitment from both countries to ensure that U.S. companies do not face discrimination or unnecessary barriers in digital services laws and policies, including network usage fees and online platform regulations.
It also promised to facilitate the cross-border transfer of information, including aspects related to location, reinsurance, and personal data.
The Trump administration has expressed concerns that South Korea’s digital regulations, such as network usage fees and cloud security regulations (CSAP), disadvantage American tech giants. Following discussions on regulatory issues prompted by the revision of the Telecommunications Business Act and the Coupang data breach incident, the U.S. raised concerns about excessive regulations on its companies.
While President Trump’s justification for the anticipated tariff increase relates to delays in ratifying the Special Law on U.S. Investment, and the letter sent two weeks ago addresses relaxing digital trade regulations, analysts suggest that the U.S. is exerting broad pressure for trade agreement compliance. This indicates a strong preemptive warning regarding the tariff threat.
In response to President Trump’s tariff increase announcement, the South Korean government convened an urgent review meeting.
According to the Blue House, Minister Kim, who was visiting Canada, plans to visit the U.S. immediately to discuss related matters with Secretary of Commerce Gina Raimondo. Additionally, Yeo Han-koo, head of the Office of Trade Negotiations, is expected to visit the U.S. soon to confer with U.S. Trade Representative Katherine Tai.
Meanwhile, the Blue House stated that this letter is not directly related to President Trump’s announcement regarding the tariff increase.
The Blue House spokesperson’s office clarified in an afternoon announcement that the letter sent by the U.S. to the Minister of Science and ICT primarily addresses the issue of not discriminating against U.S. companies on digital issues. They emphasized that it is not directly related to Trump’s assertion that the South Korean National Assembly has not proceeded with the necessary legal steps for implementing the U.S.-Korea trade agreement.