In the wake of the U.S. Supreme Court’s ruling on reciprocal tariffs, President Donald Trump has imposed a universal tariff based on Section 122 of the Trade Act, prompting the South Korean government to launch a comprehensive response strategy.
As the U.S. global tariff of 15% takes effect on Tuesday, South Korea’s top trade official has postponed overseas travel, while economic ministries have convened emergency meetings tos assess the situation and develop countermeasures.
Trade Chief Delays Trip as Economic Ministries Enter Round-the-Clock Crisis Mode
According to government sources on Tuesday, Yeo Han-koo, head of the Ministry of Trade, Industry, and Energy’s trade negotiations office, has abruptly postponed his scheduled visit to New Delhi from Monday to Thursday. Yeo will remain in South Korea to personally oversee the rapidly evolving trade landscape following the ruling on the U.S. International Emergency Economic Powers Act (IEEPA).
On Monday, Minister of Trade Kim Jong-kwan chaired a joint public-private strategy session at the Korean Chamber of Commerce and Industry.
Minister Kim emphasized that the uniform application of the U.S. 15% global tariff would significantly alter the competitive landscape for South Korean companies. He pledged to maintain open dialogue with U.S. counterparts to prepare for potential aggressive tariff policies through alternative measures under Sections 122 and 301 of the Trade Act.
On the same day, the Ministry of Finance held a market assessment meeting led by First Vice Minister Lee Hyung-il, with representatives from the Bank of Korea, the Ministry of Trade, the Financial Services Commission, and the Financial Supervisory Service.
Vice Minister Lee noted that while the immediate impact of the Supreme Court ruling on global financial markets was limited, ongoing external risks remain. He committed to maintaining a 24-hour market monitoring system.
Deputy Prime Minister and Finance Minister Koo Yun-cheol: The Situation is Critical… It Must Expedite the Special Investment Law to Mitigate Uncertainties in U.S. Relations
The government is closely monitoring the potential ripple effects of U.S. tariff policy changes on the South Korean economy while proceeding with special laws for U.S. investment as planned.
Deputy Prime Minister Koo acknowledged the increased trade uncertainty following the U.S. Supreme Court ruling, stating that it recognizes the gravity of the situation, and pledged to accelerate the special investment law to address uncertainties in U.S.-Korea trade relations.
During a recent inquiry at the National Assembly’s Finance and Economy Committee, Deputy Prime Minister Koo remarked that the new tariff measures could have both positive and negative implications due to the high level of uncertainty. He expressed a commitment to respond proactively to any developments.
Koo particularly stressed the importance of faithfully implementing existing agreements with the U.S. He noted that adhering to previously agreed terms will be viewed positively by the U.S. However, delays in legislation could lead to misunderstandings about our commitment to the memorandum of understanding (MOU), potentially hindering positive relations.”
He added that he’s deeply appreciative of the opposition committee members for recognizing the national interest at stake and agreeing to expedite the bill’s processing. A full meeting of the Special Committee on U.S. Investment is scheduled that afternoon at the National Assembly to discuss related measures, including the special investment law.
Regarding existing reciprocal tariff refunds, Koo expressed a cautious stance. With the Trump administration’s hardline tariff policy ongoing, this suggests a deliberate effort to avoid provoking the U.S. government.
Addressing the issue of refunding export companies for existing reciprocal tariffs, Deputy Prime Minister Koo explained that the current structure requires U.S. importers to apply for refunds, emphasizing the need to closely examine the contractual relationships between exporters and U.S. importers.