South Korea regulation could cost US states $525 billion, model finds

Key Points:

• A new Competere Foundation model predicts U.S. companies could face $525 billion in economic losses over the next decade if South Korea adopts the Online Platform Fairness Act, which would regulate transactions with some American firms.
• The legislation, backed by South Korea’s far-left President Lee Jae-myung and the Korea Fair Trade Commission (KFTC), is criticized by U.S. lawmakers for unfairly targeting American companies and favoring Chinese interests.
• Over 50 U.S. House members have raised concerns about discriminatory business practices by South Korea’s Democratic government, warning that such policies could benefit China and harm U.S. economic and strategic interests.
• The controversy includes a recent $410 million fine against U.S. tech company Coupang for a data breach involving a Chinese national, which South Korea defends as consistent with domestic regulations.
• Experts and politicians argue that South Korea’s shift toward progressive policies and increased regulatory burdens on U.S. firms threaten the longstanding U.S.-South Korea alliance and could shift market share to Chinese competitors.