As the U.S. administration accelerates efforts to restore the competitiveness of its domestic seafood industry, the Korean government is on high alert. This is because the U.S. might impose export restrictions on Korean seafood products, citing issues such as labor exploitation of foreign workers. As a result, the Korean government has begun to inspect the conditions in the fisheries sector and initiate legal reforms to increase transparency in the hiring of foreign workers.
According to a government official on the 19th, President Donald Trump signed an executive order on the 17th to strengthen the competitiveness of the U.S. seafood industry. The order states that the competitiveness of U.S. seafood, weakened by unfair foreign trade practices, must be restored.
Earlier, on the 3rd, the U.S. government imposed import bans on salt produced in Korea's Taepyeong Salt Farm. It was the first time Korean products were banned for forced labor. It is also reported that the U.S. recently conducted an investigation into the situation of foreign workers in rural farming and fishing areas in Korea. In relation to this, there is concern that the labor conditions in the Korean fisheries industry might lead to an expansion of regulations on seafood overall.
In response, the government is taking various measures. The Ministry of Oceans and Fisheries, along with the Ministry of Justice, Ministry of Employment and Labor, Ministry of Gender Equality and Family, Ministry of Foreign Affairs, and Ministry of Trade, Industry and Energy, formed an interagency task force on the 29th to discuss tariffs and trade issues related to U.S. seafood. The Ministry of Employment and Labor and Ministry of Justice are preparing to inspect the conditions in the fisheries sector. The inspection is expected to focus mainly on seaweed and oyster production sites in Jeollanam-do and fish farms with high concentrations of foreign workers.
The Ministry of Justice and the National Assembly are also working on revising related laws to improve the institutional transparency of hiring foreign workers. Representative Im Mi-ae of the Democratic Party of Korea recently proposed a partial amendment to the Immigration Control Act, pointing out that the current system for foreign seasonal workers relies solely on guidelines without clear legal basis, resulting in human rights violations such as human trafficking. The amendment includes provisions to establish a clear legal basis for the foreign seasonal worker system, set up a consultative body for seasonal labor policy, designate professional institutions and provide financial support, and introduce penalties to prevent broker interference.
The reason for the involvement of the government and the National Assembly is the criticism that Korea's foreign seasonal worker system is structurally dependent on brokers. The system allows for the legal employment of foreigners in agriculture and fisheries, sectors that require short-term and intensive labor during planting and harvest seasons. The targets are residents of foreign local governments that have signed MOUs with Korean local governments, families of marriage immigrants, relatives within the second cousin range, and foreigners residing in Korea who meet the requirements for participating in seasonal work.
Currently, one or two local government officials recruit foreign workers from several countries, but due to language barriers and excessive workloads, the hiring often goes through brokers. There are reported cases of brokers committing illegal acts such as demanding excessive fees or confiscating passports while threatening foreign workers in exchange for paying for their airline tickets.
A government official stated, "It's practically impossible for one local government official, whose position changes annually, to recruit dozens of foreign workers directly. If a professional institution handles MOU signing and hiring while local governments take on management only, efficiency and transparency will significantly improve."
Meanwhile, the government is paying close attention to the U.S. Department of State's forthcoming Trafficking in Persons Report (TIP Report), set to be released in June. The U.S. tends to impose import restrictions based on the report's contents, and a negative assessment could have a direct impact on Korean seafood exports.
Ko Gibok, head of 1218forAll, emphasized, "The U.S. Customs and Border Protection (CBP) has a strong tendency to implement export restrictions based on the annual TIP Report. Even if there is an issue within the supply chain of one item, they could impose import bans on all products from corporations and demand proof of no issues, which necessitates the government and corporations to examine the entire supply chain."
In fact, in 2020, Top Glove, a leading Malaysian rubber glove manufacturer, suffered a significant blow when it was subjected to a 14-month U.S. import ban due to the death of a foreign worker. The market share of Malaysian corporations, which dominated 70% of the U.S. rubber glove market, plummeted to 47% by 2023.
Despite the relatively small share of agricultural and fishery products in total U.S. exports, analysts note that the U.S. measures cannot be ignored as they could lead to revenue declines for farmers and fishers. According to the Ministry of Oceans and Fisheries, as of last year, the U.S. ($480 million) was Korea's third largest seafood export destination after Japan ($660 million) and China ($530 million).
Especially if the U.S. targets seaweed farms, it could block the path for seaweed exports aiming for '$1 billion export' this year. Top export items to the U.S. as of last year were ▲seaweed ($210 million) ▲toothfish ($60 million) ▲oysters ($25 million) ▲flounder ($19 million) ▲squid ($18 million), with seaweed making up a significant portion. The Ministry of Oceans and Fisheries plans to expand its dedicated center for addressing non-tariff barriers and establish a system for managing export history information in response to the U.S. tariffs and export policy.