▲ This file photo, released by Reuters, shows U.S. Trade Representative Jamieson Greer arriving for U.S. President Donald Trump's State of the Union address to a joint session of Congress at the U.S. Capitol in Washington, D.C., on Feb. 24, 2026. (Yonhap)

USTR-S Korea-trade barrier

U.S. trade barrier report cites S. Korea's AI procurement, digital regulation, forced labor issues

By Song Sang-ho

WASHINGTON, April 1 (Yonhap) -- The Office of the U.S. Trade Representative (USTR) has released an annual report on foreign trade barriers that cited South Korea's artificial intelligence (AI) procurement practice, digital regulations and forced labor-linked issues, to name a few.

The office issued the 2026 National Trade Estimate Report on Foreign Trade Barriers on Tuesday, as U.S. President Donald Trump's administration is carrying out trade investigations on South Korea, China, Japan and other trading partners, which might result in new tariffs or other measures.

On AI, it pointed out that U.S. cloud service providers reported that last year, Seoul's science ministry issued tenders for high-performance graphics processing unit chips and additional cloud resources that were only accessible to domestic bidders, thus excluding U.S. companies from participating.

It also listed a series of issues related to South Korea's digital regulation efforts, including the introduction of bills requiring foreign content providers to pay network usage fees, and restrictions on the export of location-based data and the transfer of personal data outside Korea.

On the labor front, the office said that Korea does not have a ban on the importation of goods produced with forced or compulsory labor.

"Therefore, such goods can enter and compete in Korea's market," it said.

In particular, the report mentioned that the U.S. Department of Homeland Security Customs and Border Protection has issued a "withhold release order" against sea salt products produced in Korea by a Korean salt farm "based on information that reasonably indicates the use of forced labor."

As it did last year, the office also noted South Korea's defense offset trade program under which Seoul has set certain conditions for foreign defense contractors to meet for defense industrial cooperation when they engage in key government procurement projects.

"The Korean government has pursued policies that prioritize local technology and products over foreign defense technology through its defense offset program," it said.

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