Washington also targets Korea’s Online Platform Act and other non-tariff barriers. Trade Pressure Intensifies
Despite South Korea’s promise of $350 billion in investments in the U.S., the United States has unprecedentedly ramped up trade pressure targeting key future industries such as artificial intelligence (AI) and digital platforms. In particular, it appears to be launching blatant checks by taking direct aim at Korea’s ‘Online Platform Act’ and the government’s AI infrastructure procurement policies.
The U.S. Trade Representative (USTR), in its ‘2026 National Trade Estimate Report on Foreign Trade Barriers (NTE)’ published on March 31 (local time), criticized South Korea’s non-tariff barriers in the digital/AI infrastructure and agricultural sectors. Although this year’s report mentioned the $350 billion (approximately 460 trillion won) investment plan by the Korean side under the ‘Korea-U.S. Strategic Trade and Investment Agreement’ finalized last November, it also included a large number of corresponding demands for market opening and deregulation.
The most notable section is the newly added ‘AI Infrastructure Procurement’ item. The USTR claimed, “U.S. cloud service providers (CSPs) have been excluded from participation as Korea’s Ministry of Science and ICT (MSICT), when conducting tenders for high-performance graphics processing unit (GPU) chips and additional cloud resources, restricted participation to domestic bidders only.”
Furthermore, while reaffirming concerns about Korea’s network usage fee legislation, the report also provided more specific criticism than last year that the Korean version of the Online Platform Act is targeting U.S. Big Tech companies.
The report stated, “Since 2021, multiple bills have been introduced in the National Assembly that would mandate foreign content providers to pay network usage fees to Korea’s internet service providers (ISPs),” and specified, “Such a mandate could be an anti-competitive measure that harms the content industry by further strengthening the oligopoly of Korea’s three major ISPs.”
Regarding the Online Platform Act being reviewed by the Korean government, it also expressed concern, stating that “while it is likely to apply to a few large Korean companies, it excludes many other major Korean companies and companies from other countries.” The demand for U.S. companies to establish data centers within Korea was also defined as an unreasonable trade barrier.
New items also appeared in the agricultural sector. The report identified the Korean government’s practice of repeatedly suspending auctions for U.S.-origin table rice due to political sensitivity during harvest season as a barrier. Furthermore, it argued that the expansion of Genetically Engineered (GE) labeling laws, passed by the National Assembly last December to include genome editing technology, “does not conform to international standards.”
In addition, the fact that the U.S. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) in April of last year on Korean-produced sea salt due to forced labor allegations, and the demand to strengthen monitoring of illegal fishing by Korea’s distant-water fishing vessels were newly included.
The NTE report is a document that the USTR submits to Congress annually, evaluating the trade barriers of major trading partners, and is used as a key basis for future U.S. trade negotiations and pressure.
The government is initially showing a cautious stance regarding the NTE report. Yeo Han-koo, Minister for Trade of the Ministry of Industry, said at a press conference held at the Government Complex Sejong on the 31st of last month, “(The NTE report) tends to include issues that the U.S. government considers very important, but also grievances raised by some companies facing difficulties while doing business abroad in various countries,” and added, “It is important to select issues through bilateral consultations and then discuss and judge them.”
www.businesskorea.co.kr
Despite South Korea’s promise of $350 billion in investments in the U.S., the United States has unprecedentedly ramped up trade pressure targeting key future industries such as artificial intelligence (AI) and digital platforms. In particular, it appears to be launching blatant checks by taking direct aim at Korea’s ‘Online Platform Act’ and the government’s AI infrastructure procurement policies.
The U.S. Trade Representative (USTR), in its ‘2026 National Trade Estimate Report on Foreign Trade Barriers (NTE)’ published on March 31 (local time), criticized South Korea’s non-tariff barriers in the digital/AI infrastructure and agricultural sectors. Although this year’s report mentioned the $350 billion (approximately 460 trillion won) investment plan by the Korean side under the ‘Korea-U.S. Strategic Trade and Investment Agreement’ finalized last November, it also included a large number of corresponding demands for market opening and deregulation.
The most notable section is the newly added ‘AI Infrastructure Procurement’ item. The USTR claimed, “U.S. cloud service providers (CSPs) have been excluded from participation as Korea’s Ministry of Science and ICT (MSICT), when conducting tenders for high-performance graphics processing unit (GPU) chips and additional cloud resources, restricted participation to domestic bidders only.”
Furthermore, while reaffirming concerns about Korea’s network usage fee legislation, the report also provided more specific criticism than last year that the Korean version of the Online Platform Act is targeting U.S. Big Tech companies.
The report stated, “Since 2021, multiple bills have been introduced in the National Assembly that would mandate foreign content providers to pay network usage fees to Korea’s internet service providers (ISPs),” and specified, “Such a mandate could be an anti-competitive measure that harms the content industry by further strengthening the oligopoly of Korea’s three major ISPs.”
Regarding the Online Platform Act being reviewed by the Korean government, it also expressed concern, stating that “while it is likely to apply to a few large Korean companies, it excludes many other major Korean companies and companies from other countries.” The demand for U.S. companies to establish data centers within Korea was also defined as an unreasonable trade barrier.
New items also appeared in the agricultural sector. The report identified the Korean government’s practice of repeatedly suspending auctions for U.S.-origin table rice due to political sensitivity during harvest season as a barrier. Furthermore, it argued that the expansion of Genetically Engineered (GE) labeling laws, passed by the National Assembly last December to include genome editing technology, “does not conform to international standards.”
In addition, the fact that the U.S. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) in April of last year on Korean-produced sea salt due to forced labor allegations, and the demand to strengthen monitoring of illegal fishing by Korea’s distant-water fishing vessels were newly included.
The NTE report is a document that the USTR submits to Congress annually, evaluating the trade barriers of major trading partners, and is used as a key basis for future U.S. trade negotiations and pressure.
The government is initially showing a cautious stance regarding the NTE report. Yeo Han-koo, Minister for Trade of the Ministry of Industry, said at a press conference held at the Government Complex Sejong on the 31st of last month, “(The NTE report) tends to include issues that the U.S. government considers very important, but also grievances raised by some companies facing difficulties while doing business abroad in various countries,” and added, “It is important to select issues through bilateral consultations and then discuss and judge them.”
U.S. Criticizes South Korea for Blocking AI Procurement Access
Despite South Korea’s promise of $350 billion in investments in the U.S., the United States has unprecedentedly ramped up trade pressure targeting key future i
www.businesskorea.co.kr