South Korea Cracks Down on Fake Origin Labels Ahead of U.S. Tariff Hike

South Korea has launched a special investigation into violations of country-of-origin labeling under its Free Trade Agreement (FTA) with the United States, the Korea Customs Service (KCS) announced Tuesday. The move comes as the U.S. prepares for potential tariff hikes under President Donald Trump’s trade policy revival.

As one of only three Asia-Pacific nations with an FTA with the U.S., South Korea enjoys near-zero tariffs on most goods. However, rising concerns over stricter customs inspections and retaliatory tariffs have prompted a proactive response from South Korean authorities.

The KCS will investigate Korean exports to the U.S. suspected of falsely labeling their country of origin. Particular focus will be placed on goods that are at high risk of mislabeling, especially those under U.S. anti-dumping measures or increased scrutiny by U.S. Customs and Border Protection.

Officials warn that companies deliberately misrepresenting foreign-made products as "Made in Korea" will face strong penalties. The goal is to protect South Korean exporters from reputational damage and safeguard legitimate trade under the FTA.

“We’re taking preemptive action to defend domestic businesses,” a KCS spokesperson said, noting the precedent of tighter U.S. verification during Trump’s previous term. The spokesperson added that harsher scrutiny is expected if reciprocal tariffs are imposed again.

Trump’s administration has vowed to enforce tougher trade measures, targeting countries that fail to meet FTA standards. New tariffs on Chinese, Canadian, and Mexican imports are also planned if compliance issues persist.

This crackdown highlights South Korea’s effort to uphold trade integrity and mitigate risks as global trade tensions resurface.