The proposed Online Platform Fairness Act in South Korea has sparked concerns over its potential economic impact on U.S. companies.
A Competere Foundation model estimates a $525 billion loss in economic activity in U.S. states over the next decade, with significant losses in major states such as California, Texas, New York, and Washington.
Lawmakers are warning that South Korea's leadership is closely aligned with China, which could have far-reaching implications for the region's economy.
Rep. Darrell Issa, R-Calif., expressed his concern that South Korea's trade commission is becoming increasingly unfriendly to U.S. companies, citing the country's 20-year ban on Google Maps as an example.
The proposed bill would broaden the power of the Korea Fair Trade Commission, which members of Congress are criticizing for unfairly treating U.S. companies.
International trade and competition economist Shanker Singham stated that Korea is already an increasingly unfriendly place for U.S. companies to do business, and the looming regulations will make that environment even worse.
Former Utah Republican Rep. Chris Stewart warned that South Korea's campaign against American companies is not just a trade issue, but a strategic mistake that benefits China.
The economic losses would not be limited to tech companies, with Stewart noting that the cost would affect more than just Silicon Valley and tie the economic losses to a Chinese win.
Foreign policy experts Nicholas Eberstadt and Lawrence Peck published an editorial in a major publication, alleging that South Korean officials stormed U.S. air force bases as part of a domestic investigation into Coupang, a U.S. tech company.
The investigation focused on Coupang's data breach, which led to a $410 million fine, the largest fine issued for a similar charge in South Korea.
The South Korean science ministry stated that a Chinese national and former Coupang employee stole data and customer information from the American company, including information about South Korean citizens.
Concerns have been raised over South Korea's discriminatory business practices, with 50 members of the House of Representatives expressing their concern in a letter to the ROK Ambassador to the United States.
Recent research by Competere shows that such regulatory actions by the ROK government will cost $1 trillion in combined economic damage to the U.S. and Korean economies over the next 10 years.
