Law firm Veat, Ju-hyeong, Head of Food Regulatory Consulting Team, presents food enterprise response strategies in response to changes in U.S. tariff policies.
Article posted in 2025-04-17 15:15:01 | VEAT
Law firm Veat’s Ju-hyeong, Global Food Industry Specialist, contributed a column on the theme of “Changes in US Tariff Policies and Korean Food Companies' Response Strategies” to the Food & Beverage News.
The following is a summary of the column. Please refer to the link at the bottom if you are interested in the full article.
The recent news that the US government is withdrawing the 0% tariff benefits maintained after the Korea-US FTA for some food items and planning to increase tariffs by up to 25-26% is a significant warning for Korean food companies. In particular, for price-sensitive items, it will be difficult to raise consumer prices, so tariff increases can directly lead to a deterioration of corporate profitability.
To survive in the US market, simply securing price competitiveness is not enough. Products that align with local consumer trends and structural responses are needed. Among the most direct and fundamental solutions, ‘Relocating Production Bases to the US’ was presented. This is because it can fundamentally resolve tariff burdens and enable localized product development and distribution optimization.
The benefits of local production include restoring price competitiveness, planning new products based on local consumer reactions, reducing logistics costs, utilizing government support benefits, and strengthening the ‘Made in USA’ brand image. However, at the same time, there are several challenges such as initial investment costs, labor management, and regulatory understanding. In particular, small and medium-sized enterprises need to approach strategically through external professional consulting or local partnerships.
Ju-hyeong, Food Regulatory Consulting Team Leader of Law firm Veat is an expert in food safety and regulatory affairs, having served as a visiting professor at Chung-Ang University and Director of the Food Safety Information Agency, and holds US FSVP & PCQI qualifications. He has expertise in domestic and international food regulatory response and export strategy consultation.
Law firm Veat is a law firm that provides specialized legal services in various fields including the food industry, possessing practical consulting capabilities such as domestic and international food regulatory response, export/import related contract review, and global certification and labeling requirements consultation. We support the sustainable growth of food companies through customized consultation that minimizes corporate risk in a changing international regulatory environment and provides legal support for market entry strategies.
Thank you.
Sincerely, Law firm Veat