Taepyeong Salt Factory WRO (India Stay of Execution) Case: Precautions for Food Export Companies

Law firm Veat’s Ju-hyeong, Global Food Industry Expert, published a column in Food & Beverage News analyzing key trends and precautions regarding the issuance of a U.S. WRO (Import Ban Order) and Korean food companies' supply chain management strategies.

Below is a summary of the column, and those interested in the full article can refer to the link at the bottom.

The U.S. Customs and Border Protection (CBP) recently issued an import ban order (WRO) under the “UFLPA” (Forced Labor Prevention Act) regarding sea salt produced at the Tae-pyeong Salt Farm in Shinan-gun, South Jeolla Province. The official reason is allegations of forced labor, which can trigger an order even with mere allegations, and if the company cannot refute it, the product can practically be barred from the U.S. market.

Tae-pyeong Salt Farm is the largest private sea salt producer in the country, and its salt is used as a quality indicator for various processed foods such as kimchi, soy sauce, and ramen. Therefore, this measure foreshadows a greater impact, as it may lead to a review of the overall processed foods that use this salt under the “FSMA” (Food Safety Modernization Act)'s traceability system.

In the actual adjustment of the supply chain, changes in origin, adjustments to product recipes, and label modifications will be unavoidable, which can lead to increased unit prices and affect brand identity. In particular, major export countries such as the U.S. and Europe are demanding comprehensive transparency and compliance with human rights and environmental standards through the Supply Chain Due Diligence Act (CSDDD), so a single raw material issue can spread the risk to the entire export network.

This incident revealed the lack of documentation and verification systems across the entire supply chain, and the limitations of practices based on internal trust. To maintain export competitiveness, it is now necessary to adopt ESG management as a practical export strategy, and to institutionalize due diligence, monitoring, and external audits for all stages of the supply chain. In order for the Korean food industry to continue sustainable growth, it is necessary to quickly internalize these global standards.

Law firm Veat’s Ju-hyeong, Food Regulatory Consulting Team Leader presents legal and institutional solutions for domestic food companies to check their supply chains in accordance with international standards and establish practical response strategies from an ESG perspective in complex risk situations where a single raw material issue affects the entire export network, like this WRO (Import Ban Order) incident.

Law firm Veat provides practical interpretations and strategic responses to specialized issues based on its domestic and international legal advisory experience in the food, pharmaceutical, and bio industries. In particular, in the food industry, which is sensitive to changes in the global regulatory environment, we provide practical support to convert regulatory risks into business opportunities through legal advisory services and the establishment of risk management systems.

- [Ju-hyeong Global Food Trends] 'A Pinch of Salt' Decides the Fate of K-Food Exports

Thank you.

Law firm Veat