South Korean authorities announced a sweeping investigation into potential violations of origin labelling rules under its free trade agreement (FTA) with the US, as Washington prepares to implement new reciprocal tariffs by 2 April, according to Reuters.
The Korea Customs Service (KCS) said on Tuesday it would scrutinise exports to the US for cases of falsely declared country-of-origin markings, particularly targeting goods at high risk of circumventing US trade restrictions. The move comes amid concerns that the Trump administration’s planned tariffs could lead to stricter enforcement of trade rules.
As one of only three Asia-Pacific nations with an FTA with the US, South Korea is keen to maintain its privileged trade status. However, authorities warned that some exporters may be mislabelling foreign-made products as South Korean to avoid US anti-dumping duties or other trade barriers.
The customs agency said it would focus on sectors where origin fraud is most prevalent, including products previously flagged by US authorities, goods subject to existing anti-dumping measures, and items under special monitoring by US Customs and Border Protection.
Companies found to have deliberately misrepresented product origins could face significant penalties, officials warned.
The probe follows Washington’s announcement of forthcoming reciprocal tariffs against several major trading partners, including China, Canada and Mexico, for alleged violations of trade agreements. With South Korea exporting $115 billion worth of goods to the US annually, Seoul appears determined to avoid becoming embroiled in similar disputes.
