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'US Pressure on South Korea to Exclude Huawei: "Consider Credibility and Legal Risks in Transactions"'

Korean Companies Using Huawei Urged to Carefully Consider Possibility of Including Untrusted Suppliers in 5G Network Deployment

'US Pressure on South Korea to Exclude Huawei: "Consider Credibility and Legal Risks in Transactions"' [Image source=Yonhap News]


[Asia Economy Reporter Lim Cheol-young] The U.S. Department of State is increasingly intensifying pressure on the use of products from the Chinese telecommunications equipment company 'Huawei.' This time, it stated that Korean companies using Huawei products should carefully consider their credibility and potential legal risks.


According to Voice of America (VOA) on the 20th (local time), in response to the South Korean government's position that "the decision to use products from certain companies is up to private companies," the U.S. Department of State replied, "It would be in the company's interest to carefully consider credibility and potential legal risks when dealing with Huawei." It also pointed out, "Huawei is a tool of the Chinese Communist Party's surveillance state and a thief stealing intellectual property," adding, "There is no doubt that it is an accomplice to human rights violations and a significant risk to data security."


The South Korean government maintained its existing stance during the 5th Korea-U.S. Senior Economic Dialogue (SED) held on the 14th, stating that the U.S. request to exclude Huawei products is "a matter for private companies to decide." In response, the U.S. Department of State mentioned that more than 40 countries are participating in the 'Clean Network' and said, "South Korea should be one of them."


Furthermore, in response to VOA's inquiry about whether concerns were specifically conveyed to LG Uplus, the Department of State explained, "Private companies will make their own decisions," and added, "We continue to urge careful consideration of the possibility of including untrusted suppliers in the construction of 5th Generation (5G) mobile networks."


Earlier, on the 16th, the U.S. Department of State also pressured participation in the 'Clean Network' through reference materials related to the SED meeting. The Department stated, "The Korea-U.S. economic partnership, including the protection of 'Clean 5G Infrastructure,' will serve as a linchpin guaranteeing a peaceful and prosperous economic future," and added, "The United States believes it is important for South Korea to participate in the 'Clean Network' for its national security."


The Clean Network is a policy aimed at excluding products from Chinese companies, such as Huawei, which the U.S. deems untrustworthy in 5G communication networks. The U.S. has recently demanded this not only from South Korea but also from Western countries including Europe and Southeast Asian countries.


In the reference materials, the Department of State also named KT and SK Telecom as domestic telecommunications companies that have adopted the Clean Network. The U.S. side cited these two companies as good examples and is known to have demanded that LG Uplus, which uses Huawei equipment, cease using Huawei products.


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