Japanese automakers have been receiving tax-free treatment of the free trade agreement (FTA) between South Korea and the United States as nine out of 10 Honda and Nissan cars sold in South Korea are manufactured in U.S. plants.The top three Japanese car brands in South Korea enjoy up to 30 billion w
The U.S. and South Korean governments had their first bilateral trade talks since the implementation of the KORUS FTA seven years ago with regard to the Korea Fair Trade Commission’s penalty imposition on Qualcomm. The U.S. government demanded stronger defense for American companies subject to the c
Economic issues related to the KORUS FTA and the automobile sector drew much attention during U.S. President Donald Trump’s recent visit to South Korea. He suggested that negotiations for fair trade promotion will be going on with agricultural products, medicines and automobiles included.U.S. Presid
A total of 1,600 American companies returned to their home country from 2010 to 2016. Likewise, 160 European and 724 Japanese companies reshored from 2016 to 2018 and in 2015, respectively. On the other hand, merely 41 South Korean companies did so from 2012 to 2017. Besides, no large South Korean c
The United States will exempt South Korean automobiles from any future tariffs because South Korea renegotiated the U.S.-Korea Free Trade Agreement (KORUS) last year, Bloomberg reported on May 16.Bloomberg said it has obtained a draft executive order which is expected to be signed by U.S. President
Korea International Trade Association Chairman Kim Young-ju met with U.S. Commerce Secretary Wilbur Ross in Washington, D.C. on May 14 (local time) and asked him to exclude South Korea from imposition of tariffs on cars. U.S. President Donald Trump makes a decision on the issue on May 18.“When it co
Toyota Korea has been benefiting from the KORUS FTA by selling U.S.-manufactured cars in Korea. The Korean operation of the Japanese carmaker shifts its tariff savings to its headquarters in Japan.Toyota Korea launched the Avalon Hybrid sedan in South Korea last month. According to industry sources,
South Korean lawmakers are stepping up efforts to introduce regulations against global ICT giants such as Google amid opposition from the U.S. Embassy in Seoul. A bill has been proposed for value added tax imposition on such companies, while the Science, ICT, Broadcasting, and Communications Committ
The United States reportedly asked the South Korean government not to introduce a so-called ‘Google tax,’ claiming that any server localization attempt targeting global IT companies will be in violation of the KORUS FTA. However, South Korean lawmakers say that server localization and the FTA have n
South Korean and American business leaders have asked the U.S. government to exempt South Korean cars and auto parts from the application of Section 232 of the Trade Expansion Act of 1962.The Federation of Korean Industries (FKI) and the U.S. Chamber of Commerce had a meeting in Seoul on October 18
The trade ministers of South Korea and the United States have signed the revised KORUS FTA, which will take effect after parliamentary ratification in each country.Trade Minister Kim Hyun-chong and USTR Robert Lighthizer signed the revised agreement in New York on September 24 (local time). Accordin
South Korean President Moon Jae-in will visit New York late this month to sign the revised KORUS FTA with U.S. President Donald Trump.Trump remarked on September 5 that the FTA will be signed during the regular session of the U.N. General Assembly scheduled for late this month. The two presidents wi
Former Trade Minister Kim Jong-hoon joined the Hyundai Motor Group as a special advisor on July 9. He is expected to coordinate the group’s efforts to deal with U.S. trade pressure with President Donald Trump poised to impose 25% tariffs on imported cars.The former trade minister represented South K
South Korea and the United States are expected to sign the revised KORUS FTA in September this year. The Ministry of Trade, Industry & Energy said on July 2 that negotiations for each item have been completed following the two countries’ agreement on principles in March.The ministry said that the ne
The Korea International Trade Association (KITA) submitted a written opinion to the US Department of Commerce on June 28 with regard to its investigation on imported automobiles and auto parts based on Section 232 of the Trade Expansion Act of 1962.“South Korea is not a threat to the security of the
South Korea is reliant on a small number of export markets to the point of being highly vulnerable to risks such as import restrictions and trade pressures.According to the Institute for International Trade (IIT) of the Korea International Trade Association (KITA), China, the United States, Vietnam,
The Korea Institute for Industrial Economics & Trade (KIET) said in its report that the KORUS FTA is rapidly losing its positive effects in terms of South Korea’s car exports to the United States. According to the report, this is because South Korean automakers have increased their production in Nor
The United States’ move to impose a tariff of up to 25% on imported vehicles caused a backlash from South Korean automakers. This is because South Korea made a concession in revising the KORUS FTA in March this year by agreeing to postpone Washington’s abolishment of a 25% tariff on imported pickup
The Korea Institute for International Economic Policy (KIEP) said in its recent report that the KORUS FTA has been more advantageous for the United States rather than South Korea since its implementation in 2012.According to the report, the imports of U.S. products to which preferential tariffs were
Deputy Prime Minister and Finance Minister Kim Dong-yeon said on April 5 that disclosure of forex market intervention history by the South Korean government has been examined for a long time and will not infringe upon its sovereignty in the foreign exchange market in any case.The Deputy Prime Minist