In a letter to the US Trade Representative (USTR) on March 11, the chamber also said South Korea’s rules and regulations are often introduced without sufficient prior notice, which is unfair trade practice as it is more likely to hurt foreign companies than local firms.“Chief executives of US companies have often been subjected by Korean authorities to criminal prosecution, exit bans, and the threat of prison or deportation for regulatory infractions that range from employment law violations to misfiling of customs declarations,” the chamber said.“In other advanced economies, these violations would be exclusively civil in nature and target the corporation rather than an individual.”The USTR collects opinions from various parties over unfair practices of trading partners and necessary measures before Washington imposes reciprocal tariffs.
REGULATIONSThe chamber said South Korea’s regulatory environment is also a non-tariff barrier.“In Korea, US companies face an opaque regulatory framework that at times fails to measure up to internationally recognized good regulatory practices,” the lobbying group said.“New rules and regulations are often introduced on short notice, and they are frequently crafted behind the scenes and consequently more likely to benefit domestic interests at the expense of foreign competitors.”The chamber recommended South Korea should engage in regular public-private dialogue and provide sufficient time for industry to prepare for new regulations.
Such legal actions also hinder US companies' ability to attract top global talent to take leadership positions there, the US business association advocacy group said.“Korea should refrain from excessive or unfair criminal punishment, including arbitrary exit bans of executives for remote administrative transgressions, and allow sufficient time for full deliberation with stakeholders, including the US business community,” it recommended.
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