Insurance Research Institute "Need to Consider Introducing Specialized Regulations for Big Tech"

[Asia Economy Reporter Changhwan Lee] As big tech companies have officially entered the domestic financial market, there are calls to consider introducing specialized regulations tailored to them.

Researcher Jun Lim of the Korea Insurance Research Institute stated this on the 6th in a report titled "The Evolution of Digital Platforms and Regulatory Directions."

The report explained that in the case of the U.S. wired telecommunications industry, the government initially responded only with unilateral competition regulations, but as the industry structure became monopolized, it established the Federal Communications Commission, a specialized regulatory agency, and introduced specialized regulations tailored to the telecommunications industry.

Researcher Lim emphasized, "In Korea, regulations on big tech currently focus mainly on unilateral competition regulations such as business conduct regulations, but considering the growth trend of big tech, it is time to consider introducing specialized regulations."

Accordingly, he proposed a data-sharing system as a specialized regulation related to digital platforms. The data-sharing system requires digital platforms with market dominance to share data they possess with other businesses if such data is essential for other businesses' operations or market competition.

Researcher Lim stated, "If data is concentrated in a specific digital platform, it becomes difficult for new businesses to enter the market, which can hinder market competition. By shifting the competition from data competition to competition in algorithm improvement and service development through the data-sharing system, it is possible to activate market competition and enhance innovation."

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