"Urgent Need to Innovate Outdated Laws and Systems for Post-Corona Digital Trade Response"

[Asia Economy Reporter Ki-min Lee] It has been argued that urgent improvements to domestic legal systems are necessary to effectively respond to the newly emerging digital trade norms caused by the novel coronavirus infection (COVID-19).

Professor Deok-geun An of Seoul National University stated this on the 17th at the Korea Chamber of Commerce and Industry (KCCI) Management Concert held under the theme "Changes in the International Trade System and Corporate Response Strategies in the Digital Age."

Professor An first said, "Just as the United States once led the service economy through the World Trade Organization (WTO) General Agreement on Trade in Services, it is now trying to change the international trade order with digital trade agreements to seize leadership in the rapidly growing digital economy driven by ICT development." He emphasized, "This includes all measures affecting trade in the digital economy such as data movement, computer server location, and cybersecurity."

As background, he explained, "Ten years ago, most of the world's top 10 companies were in finance, energy, and distribution sectors, but now seven of them are platform companies such as Microsoft, Apple, Amazon, Alibaba, and Facebook," adding, "This is because digital platform companies are leading the industrial ecosystem and creating new trade patterns."

Regarding the competition for digital economy leadership between the United States and China, Professor An claimed, "Since the United States first introduced digital trade norms in the Trans-Pacific Partnership (TPP), it has been focusing on establishing a new digital trade order through agreements like the recently concluded Digital Economy Partnership Agreement (DEPA), which includes not only the movement of goods but also intangible content, data, artificial intelligence (AI), and blockchain."

He continued, "China still has a large market potential with an internet usage rate of only about 58%, and private companies like Alibaba are leading the digital market while making efforts to spread digital standards and technologies using hundreds of millions of consumers within China."

Professor An pointed out, "Although South Korea has built a high level of digital infrastructure, ranking first in the 'Digital Services Trade Restrictiveness Index' recently published by the Organisation for Economic Co-operation and Development (OECD), some outdated regulations still prevent the proper use of global platform services such as Google Maps and Uber," emphasizing the need for proactive measures such as improving outdated legal systems to expand the digital economic territory.

Professor Deok-geun An’s lecture will be available for viewing from September 18 on YouTube (KCCI Insight) and the Korea Chamber of Commerce and Industry website’s 'Online Seminar' section. The 'KCCI Management Concert,' which has been held since 2014 to provide strategic insights on management strategies, management trends, and international affairs necessary for companies, has continued as a web seminar format since April this year due to COVID-19.

This content was produced with the assistance of AI translation services.