U.S. Think Tank Urges Trade Response Over Korean Fines
A U.S. think tank pointed out that the Korea Fair Trade Commission has imposed penalty surcharges on U.S. companies that are on average 21 times higher than those on domestic companies, and urged the U.S. government to take trade countermeasures.The argument is that Korea’s enforcement of competitio
A U.S. think tank has raised concerns over the Korea Fair Trade Commission's imposition of significantly higher penalty surcharges on U.S. companies compared to domestic firms. The ITIF report found that the average surcharge for U.S. corporations was around 21 times greater than that for Korean companies, reaching approximately 39.2 billion won ($29.58 million).
This disparity could escalate to a trade conflict, particularly in light of Section 301 of the U.S. Trade Act, which allows for trade countermeasures against discriminatory policies. Out of the total penalty surcharges, 96.5% were directed at three U.S. tech giants: Qualcomm, Google, and Coupang. The think tank argues that the Office of the United States Trade Representative should investigate Korea's competition law enforcement and platform regulations under Section 301.
Coupang's U.S. investors have already submitted a petition for a Section 301 investigation due to the Korean government's regulatory measures against the company. The report also highlights the potential impact of the Act on Fair Transactions in Online Platform Intermediary Business, which could disproportionately burden U.S. platform companies with additional obligations and potential surcharges up to 10% of related sales, raising concerns about potential discriminatory law enforcement.
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