U.S. Targets Korea: "Beef and Defense Offset Trade Also Trade Barriers"

Formalized Through USTR Report

Criticizing Defense Trade Practices

Likely to Use for Comprehensive Tariff Pressure

Acting President Han Duck-soo said at the Economic Security Strategy TF meeting held at the Prime Minister's Residence in Samcheong-dong, Seoul, on the 1st, "It is time for the government and companies to join forces." From the left, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, Hyundai Motor Group Chairman Chung Eui-sun, Samsung Electronics Chairman Lee Jae-yong, Acting President Han, SK Group Chairman Chey Tae-won, and LG Group Chairman Koo Kwang-mo are holding hands before the meeting. /Kim Beom-jun, Reporter">

The Donald Trump administration has pointed out that Korea's defense offset trade, which involves receiving technology transfers when purchasing foreign weapons, is a trade barrier ahead of the announcement of reciprocal tariffs.

The United States Trade Representative (USTR) stated in the '2025 National Trade Barriers Report' released on the 31st (local time) that the Korean government has pursued a policy of prioritizing domestic technology and products over foreign defense technology through the defense offset trade program. It also pointed out that if the contract value exceeds $10 million (about 14.7 billion won), foreign contractors may be subject to offset trade obligations. This is the first time USTR has specified offset trade as a trade barrier.

In the report, USTR noted that Korea imports only beef from cattle under 30 months of age according to the 2008 Korea-U.S. beef market opening agreement, stating that "transitional measures have been maintained for 16 years." It also cited the continued ban on imports of processed beef such as beef patties, jerky, and sausages regardless of age as a trade barrier.

President Trump indicated that the reciprocal tariffs "may be quite low in some cases," suggesting that the rates could vary by country. The timing of the reciprocal tariff announcement was said to be "on the night of the 1st or during the 2nd" Eastern Time. U.S. Treasury Secretary Scott Besant announced it would be released at 3 p.m. Eastern Time on the 2nd (4 a.m. on the 3rd Korean time).

Acting President Han Duck-soo held the first Economic Security Strategy TF meeting with Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun, and LG Group Chairman Koo Kwang-mo on the 1st at the Prime Minister's Residence in Samcheong-dong, Seoul, to discuss strategies to respond to U.S. tariff impositions. Acting President Han said, "We will urgently prepare support measures that the government can provide in each industry, including the automotive industry, which is likely to face difficulties."

Washington Correspondent Lee Sang-eun/Reporter Lee Seul-gi selee@hankyung.com