South Korea's Ministry of Trade, Industry and Energy moved to respond to a U.S. ruling that found reciprocal tariffs illegal. Trade, Industry and Energy Minister Kim Jeong-gwan (김정관) chaired an emergency meeting at the Technology Center in Seoul on Feb. 21. The meeting was attended by Trade Minister Yeo Han-koo (여한구), directors and division chiefs of relevant departments, and commercial counsellors at the South Korean embassies in the United States and Japan, to closely review the impact of the ruling and response directions.

Earlier, the U.S. Supreme Court on Feb. 20 local time ruled that President Donald Trump's imposition of reciprocal tariffs was illegal. It concluded that both reciprocal tariffs and fentanyl tariffs based on the International Emergency Economic Powers Act were invalid. As a result, the 15 percent reciprocal tariff imposed on South Korea also lost effect. Auto and steel tariffs based on the Trade Expansion Act and other laws will remain in place.

The ministry said it had prepared response measures for various scenarios in anticipation of the ruling. It plans to focus on identifying follow-up steps, as the U.S. administration announced a proclamation imposing a global 10 percent tariff under Section 122 of the Trade Act immediately after the ruling. On implementing the South Korea-U.S. tariff agreement, it plans to continue friendly consultations with the U.S. side.

The ruling did not clearly mention the issue of refunds for reciprocal tariffs. The ministry plans to watch U.S. moves and work with economic organisations and associations to seek ways to minimise damage to companies. The Korea Customs Service also plans to provide intensive support, including offering information on individual refunds for companies with DDP-term contracts.

Last month on the 26th, Trump said he would raise the tariff to 25 percent, citing delays in legislation of a special law on investment in the United States by South Korea's National Assembly. The actual procedure to raise the tariff, including publication in the official gazette, has not yet proceeded.

Kim said, "With this ruling, uncertainty for exports to the United States has risen somewhat, but export conditions to the United States secured through the South Korea-U.S. tariff agreement will be maintained in a broad framework." He added, "The government will comprehensively review the contents of this ruling, follow-up steps by the U.S. administration and trends in major countries to respond with full force in the direction that best fits the national interest, and will do its utmost to protect the interests of our companies."