From left, Rep. Scott Fitzgerald (R-Wis.), Joo Byung-ki, Chairman of Korea's Fair Trade Commission, and Rep. Darrell Issa (R-Calif.).Last week, Politico reported, citing three sources, that the U.S. Trade Representative's Office (USTR) canceled its annual meeting with South Korean government officials, citing the South Korean government's pursuit of digital-related measures that the Trump administration views as discriminatory.

The closed-door meeting of the U.S.-Korea Joint Committee, scheduled for Thursday the 18th, was canceled. The committee was established under the 2012 U.S.-Korea Free Trade Agreement (KORUS). Politico noted that this would have been the first Joint Committee meeting since the two countries amended the trade agreement, which reduced U.S. tariffs on South Korean products by 15% in exchange for South Korea's commitment to attract investment and not pursue digital regulations unfavorable to U.S. companies.

Politico stated that this cancellation came "after a controversial National Assembly hearing that targeted Coupang, a major e-commerce company listed on the U.S. stock market that exports U.S. goods to South Korea," and that the U.S. side viewed this as "excessive regulation."

This government decision is drawing attention as it follows warning remarks made by federal lawmakers to South Korea's Fair Trade Commission (KFTC) during a House Judiciary Committee hearing on Tuesday the 16th.

Rep. Darrell Issa (R-Calif.) and Rep. Scott Fitzgerald (R-Wis.) pointed out that South Korea's regulatory stance, particularly the actions of the Fair Trade Commission, have gone beyond the scope of competition policy and devolved into targeted economic pressure against U.S. companies.

Rep. Issa said, "Korea's 'Fair Trade Commission' Chairman Joo Byung-ki is taking America down, and he's taking us down," adding, "He says this: 'So why are so many Americans, especially white working folks in the Rust Belt, so angry?' And I'll tell you why they're angry – because they believe in free and fair trade. The reality is we must now confront the current state of global competitiveness."

The lawmakers framed the issue not as a technical regulatory dispute but as a matter of fair treatment, reciprocity, and credibility in trade relations.

Rep. Issa criticized Chairman Joo Byung-ki of the Fair Trade Commission for making public remarks that disparaged American workers while pursuing enforcement policies, arguing that such statements and actions reflect a fundamental disregard for the principles underpinning trade relations between the two countries.

Rep. Fitzgerald, who has previously sent warning letters to South Korea's Fair Trade Commission, pointed to economic research indicating that South Korea's approach could result in hundreds of billions of dollars in losses to the U.S. economy, ultimately passing higher costs onto American consumers.

The Republican members of the House Judiciary Committee shared a video of related testimony on X (formerly Twitter), stating, "Progressive countries like South Korea are attacking American businesses to achieve a leftist agenda. President Trump will not let this stand!"

On June 30, approximately 40 Republican lawmakers sent a letter to President Trump urging him to address digital trade barriers with South Korea.

In the letter, the lawmakers urged, "As more comprehensive negotiations with South Korea proceed, we implore the U.S. government to dismantle the remaining barriers that South Korea imposes on American businesses. Doing so will create a fairer competitive environment for American exporters, strengthen supply chains, and ensure continued investment between our countries for the benefit of American industries, consumers, and workers alike."

The lawmakers also noted, "One of the primary obstacles that must be addressed in negotiations is the legislation proposed by the Korea Fair Trade Commission (KFTC) and adopted by the new Lee Jae-myung administration. This bill disproportionately targets American digital companies by strengthening regulatory requirements. Mimicking the EU’s overtly discriminatory Digital Markets Act, this legislation imposes unfair legal and enforcement standards designed to stifle innovative business models and disadvantage successful American companies."

The letter continued, "Furthermore, South Korea has long utilized its competition laws to achieve protectionist ends and foster discriminatory policy outcomes. In recent times, the Korea Fair Trade Commission (KFTC) has been weaponized to achieve these ends. In some instances, this has resulted in unannounced raids on American companies, overly coercive enforcement actions, and threats of criminal prosecution for general industry practices that would not be considered criminal in any other country. Such excessive and arbitrary enforcement of competition law not only leads to unwarranted investigations and unnecessary penalties but also significantly hinders the business operations of American companies in the Korean market."

Major U.S. companies including Google, Apple, Amazon, Meta, Qualcomm, and Tesla have faced repeated sanctions and investigations related to app stores, digital advertising, search rankings, privacy regulations, and platform operations. Industry groups state that South Korea's "network usage fees" and mandatory billing obligations have further exacerbated these imbalances.

Recent moves by the South Korean National Assembly to introduce new digital platform legislation and signals that regulators may continue stringent enforcement were interpreted by U.S. officials as non-compliance rather than negotiation.

The cancellation of the U.S.-Korea Joint Committee meeting was a response to this.

Politico further added that U.S. Trade Representative representative Jamison Greer repeatedly warned South Korean officials that failure to comply with digital trade commitments could lead to investigations under Section 301 of the Trade Act, which could result in new tariffs and retaliatory measures.

It remains to be seen what countermeasures the U.S. will take against South Korea, which, still holding the weapon of tariffs, is seeking to break its promises and regulate American companies.

U.S. NNP=Editor-in-Chief Sung Ku Hong / Special Contribution NNP info@newsandpost.com