USTR calls for wider opening of Korea’s car market

The U.S. government is soon expected to strongly demand that Korea take the positive step of promoting the wider opening of its car market and stop exercising influence over the sale of Hanbo Iron and Steel and Pohang Iron and Steel Co. (POSCO).

According to a branch of the Korea Trade-Investment Promotion Agency (KOTRA) in Washington Wednesday, the office of the United States Trade Representative (USTR) said in a white paper on trade policies for 2000 that Korea recently fulfilled its promises to implement far-reaching reforms of the financial sector, but that its insufficient corporate restructuring efforts in areas like automobiles and steel would be a source of trade friction.

On the opening of Korea`s car market, the USTR said, ``The situation has somewhat improved since Korea and the United States exchanged a memorandum of understanding (MOU) in 1998. But negative views of imported cars are still pervasive among Korean consumers and the Seoul government has levied heavy taxes on the owners of foreign vehicles.``

As for steel-related trade, USTR said, ``The surge in imports of Korean-made steel products, which brought about a crisis in the U.S. steel industry in 1998, stemmed from the distorted structure of the Korean steel industry. Accordingly, the Seoul government should stop exercising its influence over POSCO and promptly push the sale of Hanbo Iron and Steel.``

Lee Byong-Ki eye@donga.com