Trade negotiations between South Korea and the United States are facing many difficulties, mainly related to non-tariff barriers and new regulatory conflicts over digital services.
Multifaceted dialogue from trade, agriculture to defense and energy is being strengthened as the suspension of the 25% tariff between the two countries will end on July 9.
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South Korea wants to enact laws to control digital platforms but faces opposition from the United States.
The agricultural sector is a major point of tension, particularly related to the beef market and other agricultural products.
Bilateral defense and energy cooperation continues to be discussed alongside trade issues.
Why have regulations on digital trade become a focal point in negotiations?
South Korea's bills aimed at curbing the dominance of major tech corporations are controversial, reflecting deep experiences in regulating the global digital market.
The South Korean government is following the EU's Digital Markets Act model to increase transparency and protect small businesses. However, U.S. lawmakers oppose it, arguing that this law is unfair, targeting U.S. companies like Google, Apple, and Meta while ignoring Chinese companies like ByteDance and Alibaba.
The newly proposed law goes beyond trade, affecting competitiveness and transparency in the global tech sector – U.S. Technology Alliance Vice Chair, 2025.
Speech at the International Technology Seminar, June 2025
Additionally, regulations on network usage fees for content providers like Netflix and the consideration of exporting Google's location data add to the tension, with the decision deadline set for August 11, 2025.
What challenges is the South Korean agricultural sector facing in negotiations with the United States?
Despite being the largest importer of U.S. beef, South Korea still maintains a ban on beef from cattle over 30 months old due to concerns about mad cow disease.
The United States calls for the lifting of this restriction and the expansion of the market for other products such as potatoes and apples, but farmer groups in South Korea strongly oppose further opening. At the hearing on June 30, 2025, they reiterated the 2007 agreement to reduce beef import tariffs to 0% by 2026.
Notably, the tariff rate of over 500% on imported rice has not yet been brought into official discussions.
How do defense agreements and energy cooperation affect South Korea-U.S. relations?
Negotiations are not limited to trade but also include the sharing of military costs for nearly 28,500 U.S. soldiers stationed in South Korea.
Although not part of trade, this cost issue significantly impacts the strategic relationship between the two countries.
In particular, South Korea is emphasizing industrial contributions through investments and collaborations in areas such as shipbuilding, artificial intelligence, batteries, semiconductors, and electric vehicles to reduce the U.S. trade deficit.
Regarding energy, South Korea shows interest in the $44 billion liquefied natural gas project in Alaska but is still waiting for detailed technical information from the United States in 2025 to decide the next steps.
Industrial and energy relationships are fundamental to strengthening long-term strategic cooperation between the United States and South Korea – South Korean Minister of Trade, May 2025.
Speech at the signing ceremony of bilateral economic cooperation, May 2025
How does the expiration of the tariff suspension affect negotiations?
July 9, 2025, is the deadline to decide whether the previously applied 25% tariffs will be continued or removed.
This puts significant pressure on the parties in the negotiations, as every issue requires consensus to avoid disruption and create deeper trade tensions.
Frequently Asked Questions
How does the EU's Digital Markets Act affect South Korea? South Korea is learning from this model to enhance transparency and competition in the digital market, aiming to regulate major tech corporations in a fairer manner. What does the South Korean agricultural sector oppose in the negotiations? Farmers oppose the opening of the market to imported beef and other agricultural products due to concerns over losing benefits and food safety. How does sharing military costs affect the relationship between the two countries? This is a sensitive issue that directly impacts defense strategy, creating pressure for diplomatic and trade negotiations. What energy project is South Korea planning to participate in with the United States? South Korea is considering joining a $44 billion liquefied natural gas project in Alaska but needs more technical information to decide. What does the expiration of the 25% tariff suspension between the United States and South Korea mean? This deadline stipulates whether to continue maintaining or abolishing significant tariff rates, directly affecting trade between the two sides.
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