The global accounting and consulting firm Ernst & Young Han Young announced on the 10th that its Global Trade Advisory Team has officially launched. Due to the impact of the Trump administration's second term in office, it aims to provide more localized trade advice by collaborating with local experts in the U.S. so that corporations in Korea can minimize tariff burdens and establish efficient supply chains.
Ernst & Young Han Young plans to support domestic corporations in effectively responding to changes in the international trade environment by providing comprehensive trade advisory services through its Global Trade Advisory Team, which consists of tax experts in various fields, including tariff optimization, minimizing tax risks, optimizing global supply chain strategies, compliance with origin regulations, and responding to trade disputes. It will also present practical response strategies by collaborating with local trade and tax experts in the U.S. through its global network.
Tariff experts provide strategies for tariff optimization and supply chain efficiency to respond to various risks, such as the introduction of universal tariffs, retaliatory tariffs, and the renegotiation of the United States-Mexico-Canada Agreement (USMCA) by the Trump administration. They closely analyze the overall supply chain of corporations to identify points where unnecessary tariff expenses arise and design optimal production processes that meet the origin criteria. In particular, they prepare ways to maximize the utilization of the Korea-U.S. Free Trade Agreement (FTA) and provide advisory services to minimize tariff burdens by considering the U.S. non-preferential origin determination system.
Transfer pricing experts offer strategies to minimize tax risks through the connection between transfer prices and customs taxable prices in transactions between related parties. This helps ensure that transaction prices applied to related party transactions meet market prices and supports corporations in complying with international tax regulations.
International tax experts seek investment opportunities amid changes in industrial policy during the Trump administration's second term and provide investment strategy consulting to help corporations maximize the use of various incentives. They assist corporations considering market entry into the U.S. in selecting optimal production site locations and applying for and negotiating various incentives from state governments, county governments, and the federal government. Additionally, they comprehensively review the tax systems of both the U.S. and Korea to design a tax-efficient investment structure, helping corporations maintain competitiveness in the long term.
The Ernst & Young Han Young Global Trade Advisory Team is led by Ko Kyung-tae, head of the tax division, with Jeong Il-young, a partner and expert in U.S. tax law, serving as the head of the operational team. It consists of specialists in various fields, including Jeong In-sik, head of transfer pricing, Jang Nam-woon, an international tax partner, and Park Dong-o, a tariff partner. By leveraging knowledge accumulated from numerous successful cases of incentives such as the U.S. investment tax credit, they plan to collaborate with U.S. trade experts to support domestic corporations in entering the U.S. market and exporting.
Ko Kyung-tae, head of the tax division at Ernst & Young Han Young, noted, "Amid rapidly evolving global trade conditions, domestic corporations need to thoroughly understand local markets and develop more sophisticated global trade strategies," adding that "the Ernst & Young Han Young Global Trade Advisory Team will provide comprehensive support to help Korean corporations minimize tariff burdens and establish optimal supply chains in close collaboration with the Ernst & Young global network."