International trade rules matter for South Korea
By Troy StangaroneSouth Korea has been one of the major beneficiaries of the trading system that developed after World War II. The reduction in tariffs and opening of markets helped to lift South Korea's economy from the depths of poverty at the end of the Korean War to become the world's 11th-largest economy today.However, the system that South Korea has thrived in is increasingly coming under strain.Recently, the United States Department of Commerce held a hearing on a Section 232 investigation to determine whether imports of foreign automobiles pose a national security risk.Despite the renegotiation of the KORUS FTA to address U.S. concerns on automotive trade, it is unclear if South Korea will receive an exemption should the Department of Commerce determine that automotive imports harm U.S. national security.If it does not, more than a quarter of South Korea's exports to the United States would face a 25 percent tariff, placing a significant burden on an industry that employs more than 400,000 South Koreans.The Department of Commerce also recently announced a new Section 232 inve
