The U.S.-based Consumer Technology Association, organizer of tech trade show CES, labels Korea's antitrust actions as an unfair trade practice. AP-Yonhap

A major U.S. industry group has accused Korea's antitrust regulator of unfairly targeting American companies, raising concerns that Korean regulatory actions amount to nontariff trade barriers.

The Consumer Technology Association (CTA), organizer of the world's largest tech expo CES and representing over 1,300 companies, submitted its concerns to the U.S. Trade Representative (USTR), prompting fears that the issue could escalate into reciprocal tariff measures.

According to a Korean government source on Thursday, the Korea Fair Trade Commission (KFTC) recently submitted its counterargument to the Ministry of Trade, Industry and Energy regarding the CTA's submission to the USTR for its annual National Trade Estimate (NTE) Report.

The NTE Report, expected in early April, could be used by the U.S. government to justify retaliatory tariffs.

In its submission, the CTA alleged that the KFTC had been "unfairly and consistently targeting" American companies such as Coupang, Google, ChatGPT and Netflix through unprecedented fines, office raids, threats of criminal charges, and what it described as "baseless investigations."

Coupang, for example, was fined more than 140 billion won ($105 million) last year over allegations of manipulating product rankings in favor of its private-label brands.

The CTA claimed these actions amount to "unfair or detrimental acts, policies or practices" under the terms of a presidential memorandum on reciprocal trade and tariffs.

It further asserted that Korea's enforcement culture is highly unusual for a close trade and security ally of the U.S. and that the KFTC's actions could become "a major obstacle to strengthening U.S.-Korea economic and security ties."

In response, the KFTC said its enforcement applies "equally and without discrimination based on nationality," and that Korean companies in sectors such as e-commerce, lodging, food delivery, streaming, online gaming, and mobility services have also been subject to investigations and penalties under the same standards.

Washington is expected to scrutinize two main areas: Korea's proposed revisions to its Fair Trade Act concerning dominant platforms, and its recent investigations and sanctions against U.S. tech giants. The CTA also criticized the legislative proposals, claiming they depart from traditional competition policy and could lead to discriminatory enforcement and stifled innovation.

The Consumer Technology Association submitted a statement to the U.S. Trade Representative on March 11, claiming unfair trade practices by Korea. Screenshot from USTR website

The Coalition of Services Industries, another U.S. trade group, reportedly submitted a similar complaint to the USTR.

Korean officials are concerned that the U.S. may use the dispute, spanning both legislative efforts and law enforcement activities, as leverage in upcoming trade negotiations.

The KFTC is currently investigating allegations of bundling by YouTube Music, while proposed amendments to the Fair Trade Act remain pending in the National Assembly.

"We will carefully examine the facts behind these claims and continue to enforce the law fairly," a KFTC official said.

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.