Koo Yun-cheol, Deputy Prime Minister and Minister of the Ministry of Economy and Finance, said in connection with the launch of the United States' Trade Act Section 301 investigation that, contrary to the U.S. side's criticism, Korea's manufacturing facility utilization rate is at an appropriate level and that Korea will actively explain this.
Previously, the Office of the United States Trade Representative (USTR) announced on Nov. 11 (local time) that, under Section 301 of the Trade Act, it would launch an investigation into structural overproduction in the manufacturing institutional sector and forced labor, targeting a total of 16 trading partners including Korea, China, the European Union (EU), and Japan.
At the Meeting of Ministers on External Economic Affairs, which he chaired at Government Complex Seoul on the 13th, the deputy prime minister said, "We will respond strategically to the United States' Trade Act Section 301 investigation," and added, "We will actively explain how our capital goods exports contribute to the revival of U.S. manufacturing."
He also said, "Korea has a solid foundation based on International Labour Organization (ILO) conventions and domestic laws prohibiting forced labor, and we intend to convey to the U.S. side that we are responding strictly to this."
Section 301 of the Trade Act refers to a provision for retaliation against unfair trade. It grants the president the authority to take appropriate measures against foreign unfair trade practices that adversely affect U.S. trade and investment. The U.S. government has said it would restore tariff measures by using Sections 301 and 122 of the Trade Act after the Supreme Court ruling invalidating the reciprocal tariff.