South Korea is giving up its status as a developing country at the WTO, meaning it will lose certain special treatment on trade.
This has been a demand of President Trump's, who has argued that Korea and other countries are too wealthy to be considered "developing."
Kim Hyesung reports.
South Korea has decided to abandon its developing nation status at the WTO.
Finance Minister Hong Nam-ki said Friday that South Korea has made the decision given its economic standing as the world's 12th largest economy with a national income of over 30-thousand U.S. dollars per capita, as well as the changing external environment.
"Within the WTO, not only advanced countries but developing countries have raised the issue of special treatment given to South Korea due to its developing nation status. Several countries that are similar in economic size or standing to South Korea such as Singapore, Brazil and Taiwan have said they would not demand special treatment as developing nations."
Countries with developing nation status at the WTO are given special treatment such as longer transition periods for implementing trade agreements and technical assistance.
South Korea joined the WTO in 1995 as a developing nation and has maintained its developing country status in the areas of agriculture and climate change to allow it to provide subsidies for farmers and impose higher tariffs on agricultural imports.
In July, President Trump accused 11 countries that are among the world's richest economies, including South Korea, Singapore and China, of abusing the developing nation status.
He said that the U.S. would stop treating such countries as developing nations should the WTO fail to make substantial progress within 90 days, which was October 23rd.
So far, Singapore, Brazil, Taiwan and the UAE have announced that they would give up developing nation status.
The finance minister said South Korea won't be given special treatment as a WTO developing nation in future trade agreements but there won't be any changes to previously signed trade deals.
He added the government will do everything it can to protect sensitive agricultural areas like rice and allocate an increased budget of 13 billion U.S. dollars for the agricultural industry next year.
Kim Hyesung, Arirang News.
