US trade investigation puts South Korea’s state-backed growth strategy at risk

US trade investigation puts South Korea’s state-backed growth strategy at risk
March 12, 2026

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US trade investigation puts South Korea’s state-backed growth strategy at risk

Section 301 probe could bring Korean technology sectors and industrial subsidies under Washington’s scrutiny

South Korea’s industrial policy framework is entering a new phase of scrutiny after the United States Trade Representative (USTR) opened a Section 301 investigation that could expose Seoul’s state-led growth strategy and corporate regulatory disputes to expanded American trade enforcement.

The investigation places South Korea among a group of advanced manufacturing economies whose policies Washington believes may contribute to “structural excess capacity” and distort global markets.

South Korea’s industrial policy framework is entering a new phase of scrutiny after the United States Trade Representative (USTR) opened a Section 301 investigation that could expose Seoul’s state-led growth strategy and corporate regulatory disputes to expanded American trade enforcement.

The investigation places South Korea among a group of advanced manufacturing economies whose policies Washington believes may contribute to “structural excess capacity” and distort global markets.

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