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Korea Herald
22-07-2025
- Business
- Korea Herald
Officals warn of rise in fake 'Made in Korea' labels
A record wave of low-cost clothing from China is pouring into South Korea, and much of it is being illegally disguised as Korean-made. Last year, South Korea imported more Chinese apparel than ever before. According to the Korea Customs Service, the country brought in $4.83 billion worth of clothing from China, up 50 percent from 2020. With the rise in volume, the authorities are seeing a surge in a deceptive practice known in Korea as "label switching." Imported garments arrive with tags that say "Made in China," but these are often swapped out before reaching the customer. Korean sellers repackage the items to appear as if they were produced in South Korea. In some cases, they even change the shipping invoices and boxes. Korean customs officials report that in the first half of 2025, they seized 3.1 million illegally distributed goods. More than half (1.7 million) were flagged for missing or false country-of-origin labels. Most of these were Chinese clothes disguised as Korean products. Korean sellers often buy these clothes for under $2 on platforms like Temu or AliExpress, then resell them on other e-commerce platforms or social media at 10 times the price. Many are advertised with vague claims like "luxury local fabric." This comes as Chinese fast-fashion giant Shein sees a sharp rise in sales here. According to Mobile Index, a data service operated by South Korea-based IGAWorks, Shein's monthly active users in the country hit 1.75 million in June. This is almost four times higher than in January. It now ranks sixth among fashion shopping apps in Korea, up from 11th last year. Another analytics firm, WiseApp Retail, reports that Shein passed 2.2 million Korean users for the first time, the highest ever recorded.
Korea Herald
22-07-2025
- Business
- Korea Herald
Vice minister reiterates efforts to minimize export risks amid US tariff uncertainties
The government will work to successfully conclude tariff negotiations with the United States to minimize risks for export companies, the first vice industry minister said Tuesday. "Our export companies are facing heightened uncertainties ahead of the imposition of US reciprocal tariffs on Aug. 1," First Vice Industry Minister Moon Shin-hak said in a meeting to review export trends. "During the remaining period, the government will make every effort to smoothly conclude tariff negotiations with the US in a way that maximizes national interest," he added, referring to the Aug. 1 deadline when the US will start imposing 25 percent reciprocal tariffs on South Korean products. South Korea's exports shrank 2.2 percent from a year earlier to $36.1 billion in the first 20 days of this month, data from the Korea Customs Service showed earlier. Outbound shipments to the US fell 2.1 percent on-year to $6.42 billion, weighed down by sweeping tariff measures by US President Donald Trump's administration. By item, steel exports dropped 9.7 percent to $2.39 billion, apparently affected by the administration's 50 percent tariffs on all steel imports. Exports of petroleum and petrochemical products slid 17.5 percent and 13.9 percent to $2.52 billion and $2.36 billion, respectively, amid a decline in global oil prices. On the other hand, exports of semiconductors increased 16.5 percent on-year to $7.89 billion, and auto exports expanded 3.9 percent to $3.63 billion.
Reuters
16-07-2025
- Business
- Reuters
South Korea says framework US trade deal possible by August, farm market access on table
SEOUL, July 14 (Reuters) - South Korea's top trade envoy said on Monday it may be possible to strike an "in-principle" trade deal with the United States by an August 1 deadline and signalled Seoul may be open to allow greater access to its agriculture markets, local media reported. Minister for Trade Yeo Han-koo, who held high-level talks with U.S. officials last week, said South Korea was seeking to avoid "unfair" U.S. tariffs on sectors key to its industrial prowess that would undermine industrial cooperation with its main security ally and trading partner, media reports said. "I believe it's possible to reach an agreement in principle in the U.S. tariff negotiations, and then take some time to negotiate further," the Newsis news agency quoted Yeo as telling local media reporters. "Twenty days are not enough to come up with a perfect treaty that contains every detail." "We need to make a strategic judgment in the case of the agriculture and livestock sectors," Yeo was quoted as saying, adding "sensitive" areas may need continued protection but some aspects may be considered as part of the overall framework. There was "considerable progress" in the discussion with U.S. officials over cooperation in key industrial sectors as part of the trade talks, Yeo was cited as saying, but Washington needed to cut industry-specific tariffs on autos and steel. On Sunday in Maryland, U.S. President Donald Trump told reporters "South Korea wants to make a deal right now," without elaborating what would cement a deal or speculate on a time frame for getting negotiations done. South Korea is in a race to reach a compromise trade pact in the hope of avoiding a 25% tariff slapped on its exports by Trump that is set to kick in on August 1, after a late start to negotiations with a new president voted in last month. President Lee Jae-myung took office on June 4 following the ouster of his predecessor Yoon Suk Yeol over a failed martial law attempt. The six months of political turmoil forced Seoul to initially focus on technical discussions over Trump's demands. Top South Korean officials held meetings in Washington after Trump's announcement, including to negotiate cuts or exemptions from import duties on steel and autos. A senior South Korean trade official said earlier this month Washington had shown a willingness to consider exemptions on sectoral tariffs, as it had when agreeing a deal with Britain, if South Korea proposed a clear offer to reduce trade deficits. South Korea earned a record $55.6 billion trade surplus with the U.S. in 2024, up 25% from 2023, led by rising car exports, according to Korea Customs Service data. South Korea's effective tariff rates stand at near-zero under a free trade agreement first signed in 2007 then revised in 2018 under Trump's first term, according to economists.
Business Times
15-07-2025
- Business
- Business Times
South Korea says framework US trade deal possible by August, farm market access on table
[SEOUL] South Korea's top trade envoy said on Monday (Jul 14) it may be possible to strike an 'in-principle' trade deal with the United States by an Aug 1 deadline and signalled Seoul may be open to allow greater access to its agriculture markets, local media reported. Minister for Trade Yeo Han-koo, who held high-level talks with US officials last week, said South Korea was seeking to avoid 'unfair' US tariffs on sectors key to its industrial prowess that would undermine industrial cooperation with its main security ally and trading partner, media reports said. 'I believe it's possible to reach an agreement in principle in the US tariff negotiations, and then take some time to negotiate further,' the Newsis news agency quoted Yeo as telling local media reporters. 'Twenty days are not enough to come up with a perfect treaty that contains every detail.' 'We need to make a strategic judgment in the case of the agriculture and livestock sectors,' Yeo was quoted as saying, adding 'sensitive' areas may need continued protection but some aspects may be considered as part of the overall framework. There was 'considerable progress' in the discussion with US officials over cooperation in key industrial sectors as part of the trade talks, Yeo was cited as saying, but Washington needed to cut industry-specific tariffs on autos and steel. On Sunday in Maryland, US President Donald Trump told reporters, 'South Korea wants to make a deal right now', without elaborating on what would cement a deal or speculate on a time frame for getting negotiations done. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up South Korea is in a race to reach a compromise trade pact in the hope of avoiding a 25 per cent tariff slapped on its exports by Trump that is set to kick in on Aug 1, after a late start to negotiations with a new president voted in last month. President Lee Jae-myung took office on Jun 4 following the ouster of his predecessor Yoon Suk-yeol, over a failed martial law attempt. The six months of political turmoil forced Seoul to initially focus on technical discussions over Trump's demands. Top South Korean officials held meetings in Washington after Trump's announcement, including to negotiate cuts or exemptions from import duties on steel and autos. A senior South Korean trade official said earlier this month Washington had shown a willingness to consider exemptions on sectoral tariffs, as it had when agreeing a deal with Britain, if South Korea proposed a clear offer to reduce trade deficits. South Korea earned a record US$55.6 billion trade surplus with the US in 2024, up 25 per cent from 2023, led by rising car exports, according to Korea Customs Service data. South Korea's effective tariff rates stand at near-zero under a free trade agreement first signed in 2007, then revised in 2018 under Trump's first term, according to economists. REUTERS
Indian Express
08-07-2025
- Business
- Indian Express
South Korea to step up US trade talks before tariffs kick in on August 1
South Korea said it planned to intensify trade talks with the United States and considered U.S. President Donald Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing the levies. Trump informed Seoul and more than a dozen other trading partners of sharply higher tariffs in a wave of letters on Monday, posing the first major test for President Lee Jae Myung since he came into office barely a month ago. Lee's office said US Secretary of State Marco Rubio had indicated the new deadline, which extends a previous July 9 date, meant there was still time to reach an agreement. South Korea's Industry Ministry said Seoul would 'step up negotiations during the remaining period to reach a mutually beneficial result.' 'We also plan to use it as an opportunity to improve domestic systems and regulations to resolve the trade deficit that is a major interest of the United States,' it said in a statement. South Korea earned a record surplus of $55.6 billion from trade with the U.S. in 2024, up 25% from 2023, led by rising car exports, according to Korea Customs Service data. Trump said in the letter to Lee that 'our relationship has been, unfortunately, far from reciprocal,' inviting South Korea to present a proposal to open 'your heretofore closed trading markets' and eliminate tariff and non-tariff barriers. He said in the letter that Washington would impose a 25% tariff on all South Korean products but an exemption would be granted to goods manufactured within the United States. South Korea's effective tariff rates stand at near-zero under a free trade agreement first signed in 2007 then revised in 2018 under Trump's first term, according to economists. Seoul's top trade envoy and presidential security adviser have travelled to the U.S. in recent days for trade and defence talks. South Korea's public had already factored in Trump's style, allowing Lee some latitude to work out a deal as long as it did not put the country in a worse-off situation than Japan, Taiwan or China, political analyst Park Sang-byoung said. 'Play good defence but don't be a pushover, that's what South Koreans want from President Lee.' Morgan Stanley economist Kathleen Oh said greater clarity on Trump's push for concessions on non-tariff barriers and industrial cooperation should give Seoul a better chance to strike a deal. The benchmark KOSPI stock index rose as much as 1.6% in early trade on optimism there was time for South Korea to reach a deal. National Security Advisor Wi Sung-lac met Rubio on Monday and agreed that a summit meeting between Lee and Trump would help advance cooperation, Lee's office said. 'There is still time until tariffs are implemented on August 1, so he hopes the two countries can communicate closely to reach an agreement before that,' the presidential office cited Rubio as saying. South Korea was slow to negotiate for an exemption from Trump's tariffs, first agreeing to work out a package deal but holding 'technical discussions' before moving to high-level negotiations after Lee took office on June 4.
