south Korea's customs authorities will launch a special investigation into potential violations of the free trade agreement (FTA) with the United States, focusing on improper country-of-origin labeling, the Korea Customs Service (KCS) announced on Tuesday. The move comes as the U.S. prepares to implement new tariffs under President Donald Trump’s trade policies.

As one of just 20 nations globally—and one of only three in the Asia-Pacific region—South Korea enjoys a free trade agreement with the U.S., which eliminates nearly all tariffs on bilateral trade. However, concerns have risen over companies falsely labeling foreign-made goods as South Korean to benefit from the trade pact’s advantages.

The KCS stated that it would rigorously inspect exports to the U.S. to detect any misrepresentation of product origins. Authorities warned of strict measures against companies engaging in deceptive practices to ensure the credibility of South Korean exports and protect domestic businesses.

"We are taking proactive steps to safeguard local industries, given past experiences during Trump’s first term, when U.S. trade verifications became more stringent after tariff hikes," a KCS spokesperson said.

The investigation will primarily target products at high risk of fraudulent labeling, including those subject to U.S. anti-dumping tariffs or under close scrutiny by American customs officials, the agency added.

The Trump administration has pledged to introduce reciprocal tariffs against major trading partners by April 2, following the imposition of steep duties on Chinese imports and certain goods from Canada and Mexico that fail to meet trade agreement standards.