South Korea Codifies Special Trade Restriction Measures With One-Year Investigations

South Korea has enacted, for the first time, a formal procedure for restricting or prohibiting trade with partner countries, setting a one-year investigation window, a 60-day decision deadline and measures lasting up to four years. The rules were issued by the Ministry of Trade, Industry and Energy as Notice No. 2026-114, dated 22 October 2026, and published in the Official Gazette No. 21345. They entered into force on the day of publication.

The instrument is titled “Notice on the Implementation of Special Measures concerning Restrictions on Trade, etc.” and is adopted under Article 6(10) of the Enforcement Decree of the Foreign Trade Act, implementing Article 5 of the Foreign Trade Act with the exception of subparagraph 4. It defines a “special measure” as any action by the Minister of Trade, Industry and Energy restricting or prohibiting the export and import of goods and related items with a trading partner on the grounds set out in that article. Until now the decree supplied the legal mandate but no procedural rulebook; the notice fills that gap with deadlines, forms and decision criteria.

Who may request a measure and how a case opens

An “interested party” is defined as any person whose trade-related rights or interests have been, or are likely to be, infringed by conduct covered by Article 5 of the Act. Such parties may file for an investigation using the form set out in attached Form No. 1, which requires:

• The applicant’s name and address, business registration number and trade business identification number;
• The facts and supporting evidence that constitute the grounds for a special measure;
• The damage suffered and the evidence supporting it;
• The type of transaction involved: export, import, transit, transhipment, brokerage or other.

The minister must decide within 30 days of receipt whether to open an investigation and notify the applicant; if a case proceeds, it is announced in the Official Gazette and on the ministry’s website. Applications must be dismissed where the grounds have lapsed, the applicant is not an interested party or has withdrawn, no damage is evident, or an identical or similar case is already pending or closed without material change. Investigations may also be dismissed or suspended where claims are false or unsupported, damage is negligible, an interested party refuses to submit data, or dispute settlement is under way under international trade rules; a suspension lasting three months without resolution ends the case.

Investigation clock, expert panel and consultations

The minister must complete an investigation within one year of its opening, with any suspension period excluded from the count. Investigative powers cover written and on-site examinations, requests for data from administrative agencies, traders and interested parties, and hearings of industry associations, consumers and experts.

A Special Measures Advisory Panel may be convened to advise on the underlying facts, the damage suffered, causation between the grounds and the damage, conformity with domestic law and international trade rules, and the effect on trade, diplomatic and security interests. Members are appointed from academics holding at least the rank of assistant professor for five years, lawyers or certified public accountants with five years of trade practice, staff of trade-related bodies with equivalent experience, and other recognised experts; fees, travel costs and allowances may be paid within budget.

Before acting, the minister must consult the heads of relevant ministries, including the Ministry of Foreign Affairs and the Ministry of Economy and Finance, and must seek resolution through consultations with the trading partner or multilateral bodies where appropriate. Public hearings may be held, announced 14 days in advance with venue, agenda and speakers.

Decision, duration and legal limits

A decision on whether to impose a measure must be taken within 60 days of the completion of the investigation, extendable by up to 120 days in unavoidable circumstances. The minister must weigh the impact on domestic industry and consumers, conformity with domestic law and international trade rules, the prospect of a negotiated settlement, and effects on trade, diplomatic and security interests.

Any measure must be announced and notified to the applicant, specifying its content, the target country, the goods concerned and its duration. Measures are capped at four years and may be extended for a further four years where continuation is needed. They are prohibited where the grounds have lapsed or a mutually acceptable solution has been reached, and may be declined where they would seriously harm trade, diplomatic or security interests, where changed international circumstances make them inappropriate, or where the protected interest is clearly outweighed by the interest at risk. The ministry must monitor compliance, may amend or revoke measures after material change, and must review the notice’s validity every three years from 22 October 2026.

The notice gives domestic producers and exporters a defined route to seek protection against foreign trade practices, replacing ad hoc discretion with published deadlines and criteria. For import-competing industries, the 30-day screening and one-year investigation clock set a predictable timetable; for trading partners, the mandatory consultation and public-hearing steps build a record that can be tested against World Trade Organization obligations.

Source: 관보 (Republic of Korea Official Gazette), No. 21345, 22 October 2026, Notices section, p. 51 (official reference: 산업통상부고시 제2026-114호).