Seoul: Industry Minister Kim Jung-kwan announced that South Korea and the United States will persist in discussions to ensure American companies are not disadvantaged by South Korea's proposed online platform regulations. This statement comes despite a recent agreement on tariffs between the two nations.
According to Yonhap News Agency, Kim made these comments during a parliamentary session, highlighting ongoing concerns that non-tariff barriers, such as the proposed Online Platform Act, have not been fully addressed. These discussions are particularly significant as President Lee Jae Myung had campaigned to curb the market dominance of international online platforms through regulatory measures, including capping commission fees and prohibiting unfair practices.
Kim stated, "Agreement was made to continue discussions to ensure that U.S. companies will not face discrimination or disadvantages under non-tariff measures, including the Online Platform Act." The U.S. had expressed concerns during the recent tariff talks regarding various non-tariff measures implemented by South Korea, including an import ban on American beef from cattle aged 30 months or older and the online platform regulations.
Kim also clarified that the recent tariff agreement did not encompass agricultural products like rice and beef, asserting that the quarantine system for these goods remains unchanged. "To clarify on agricultural goods, rice, beef, fruits, and other produce were not included in the agreement," he emphasized.
There is speculation that if South Korea expedites quarantine procedures for U.S. agricultural products, it could lead to increased imports of U.S. fruits such as apples, pears, and peaches. This could effectively open the market for U.S. produce despite not being explicitly covered in the agreement. As an example, while apple imports are technically allowed, the quarantine process requested by the U.S. in 1993 has been stalled for over two decades, exemplifying a key non-tariff barrier.