The government is set to revise its regulations to allow for export-import restrictions in response to national security threats and the protection of personal and corporate information. The Ministry of Trade, Industry and Energy has detailed the necessary procedures for investigations, expert consultations, and stakeholder feedback prior to implementing such restrictions.
On October 13, the ministry announced that a revision to the 'Enforcement Decree of the Foreign Trade Act' was approved during a Cabinet meeting. This decree will take effect on October 22, alongside the Foreign Trade Act, which was amended in April.
The revision aims to establish detailed procedures for the government's export-import restrictions in light of the rapidly changing international trade environment. It also focuses on enhancing support systems for small and medium-sized enterprises (SMEs) to utilize trade agreements more effectively.
The Foreign Trade Act, amended on April 21, expanded the reasons under which the government can impose export-import restrictions. Previously, such measures were limited to circumstances like war, disasters, or unfair discrimination by foreign nations. The amended law now includes national security threats, protection of personal and corporate information, public morals, and national treasures as additional grounds for restrictions.
Through this decree revision, the government has clarified the content and methods of investigations necessary for implementing the newly expanded export-import restrictions. Procedures for expert consultations and stakeholder feedback will be established, and specific investigation details will be defined in a public notice.
The related public notice, titled 'Special Measures for Trade Restrictions,' will also come into effect on October 22.
While the legal basis and investigation procedures for export-import restrictions have been expanded and clarified, this does not mean that restrictions on specific countries or items will be immediately enacted. The actual implementation and scope of any measures will be determined after investigations and reviews by relevant authorities.
The government will also strengthen systems to support SMEs in utilizing free trade agreements (FTAs). The Ministry of Trade has specified the range of statistical data related to preferential tariffs that it can request from the Korea Customs Service.
This data will include the export-import amounts subject to preferential tariffs, the actual amounts benefiting from these tariffs, and the utilization rates of preferential tariffs during the export-import process. Based on this information, the government plans to analyze the level of FTA utilization by companies and operate support programs more systematically.
The legal status and management system of institutions supporting FTA utilization will also be revised. The criteria and procedures for designating support institutions will be clearly defined, and provisions will be made to revoke designation if an institution fails to meet the criteria or performs its duties inadequately. However, a hearing process will be established to consider the opinions of the institution before any revocation.
The Ministry of Trade stated, 'Through these institutional improvements, we aim to enhance economic security and the ability to respond to trade crises,' adding that it will strengthen the effectiveness of trade agreement support programs by utilizing statistical data from the Korea Customs Service and public-private cooperation.
* This article has been translated by AI.
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