Home > Business > Industry

USTR report focuses on Korea's AI procurement, digital regulation and forced labor issues

Published: 01 Apr. 2026, 21:12

U.S. Trade Representative Jamieson Greer arrives for U.S. President Donald Trump's State of the Union address to a joint session of Congress at the U.S. Capitol in Washington on Feb. 24. [REUTERS/YONHAP]

The Office of the U.S. Trade Representative (USTR) has released an annual report on foreign trade barriers that cited Korea's AI procurement practice, digital regulations and forced labor-linked issues.

The office issued the 2026 National Trade Estimate Report on Foreign Trade Barriers on Tuesday, as U.S. President Donald Trump's administration is carrying out trade investigations on Korea, China, Japan and other trading partners, which might result in new tariffs or other measures.

Regarding AI, it noted that U.S. cloud service providers reported that last year Seoul's Science Ministry issued tenders for high-performance GPU chips and additional cloud resources accessible only to domestic bidders, thereby excluding U.S. companies from participating.

It also listed a series of issues related to Korea's digital regulation efforts, including the introduction of bills requiring foreign content providers to pay network usage fees, and restrictions on the export of location-based data and the transfer of personal data outside Korea.

On the labor front, the office said that Korea does not have a ban on the importation of goods produced with forced or compulsory labor.

“Therefore, such goods can enter and compete in Korea's market,” it said.

In particular, the report mentioned that the U.S. Department of Homeland Security Customs and Border Protection has issued a “withhold release order” against sea salt products produced in Korea by a Korean salt farm “based on information that reasonably indicates the use of forced labor.”

As it did last year, the office also noted Korea's defense offset trade program, under which Seoul has set conditions for foreign defense contractors to meet in order to engage in defense industrial cooperation on key government procurement projects.

“The Korean government has pursued policies that prioritize local technology and products over foreign defense technology through its defense offset program,” it said.

Yonhap