Business Leaders, Experts: "Korea's Digital Regulations as Non-Tariff Barriers... Urgent Need for Industrial and Security Response Strategies"

Digital Trade: From Commerce to Economic Security Agenda
US Criticizes Korea's Digital Regulations as Discriminatory
Need to Revamp Digital Strategy Centered on National Interest

As the United States increases pressure by designating Korea's digital regulations as non-tariff barriers, experts have advised that a comprehensive strategy encompassing both industry and security is urgently needed.

The Federation of Korean Industries (FKI) held a seminar titled "The Digital Trade Era: Current Issues and Economic Security Strategies" on September 17 at the FKI Tower Conference Center in Yeouido, Seoul, in collaboration with Assemblyman Kim Wooyoung of the Democratic Party of Korea and Assemblyman Lee Sungkwon of the People Power Party. The seminar discussed current issues in digital trade and possible response strategies.

In his opening remarks, Assemblyman Kim stated, "Digital trade is not merely a trade issue, but a core agenda where economic security and national strategy are intertwined." He emphasized, "With the acceleration of supply chain restructuring and the competition for technological supremacy, issues such as high-precision map data, cloud security, network usage fees, and online platform regulations are all directly linked to national competitiveness. Therefore, detailed analysis and systematic responses are required."

Assemblyman Lee also stressed, "Amid trade pressure from the United States, it is essential to design policies that fully consider the competitiveness and practical interests of the industry." He added, "In particular, since digital trade is a sensitive area directly related to security, a cautious approach is necessary." He continued, "I hope this seminar will serve as an opportunity to gather response strategies, and at the National Assembly level, we will strive to create an environment where companies can invest with confidence."

In his welcoming address, Jung Chul, Chief Research Officer of the FKI and President of the Korea Economic Research Institute, said, "It is positive that the government negotiation team was able to reach an agreement in a short period of time." He continued, "Now is the time to consider what Korea should proactively do based on these achievements." He added, "Since the United States continues to express concerns about Korea's overall digital regulations, we must go beyond tariff discussions and develop strategies to expand cooperation into technology and industry collaboration. To this end, the public and private sectors must work together to meticulously prepare our response logic."

In his presentation on "Changes and Diagnosis of the Digital Trade Environment," Lee Guyoup, Research Fellow at the Korea Institute for International Economic Policy, explained, "The United States believes that Korea's digital regulations make it difficult for American companies to enter the market and cause reverse discrimination." He specifically pointed out, "Restrictions on the overseas transfer of high-precision map data, high entry barriers in the cloud security certification system, network usage fees imposed mainly by telecommunications companies, and strengthened platform regulations are all seen as disadvantages for foreign companies."

He emphasized that if such demands become more pronounced, they could have significant short- and long-term ripple effects on the Korean economy, and that industry and government must jointly develop a response logic. Lee added, "While reviewing the possibility of improving domestic regulations, we must actively respond if the annual National Trade Estimate (NTE) report contains inaccurate information, and closely monitor how other countries are responding."

In his presentation on "Digital Trade Challenges and Korea's Strategic Response," Lee Joohyung, Professor at the University of Seoul Law School, pointed out, "Since the launch of the second Trump administration, the United States has defined the European Union's Digital Markets Act (DMA) and Digital Services Act (DSA) as discriminatory regulations, intensifying conflicts." He warned, "In the same context, the United States also perceives Korea's digital regulations as unfavorable non-tariff barriers, and as seen in the EU case, this could escalate from a potential threat to an actual conflict."

He further suggested, "Korea should refer to cases such as mutual recognition of standards and cybersecurity certification negotiations experienced in US-EU negotiations and establish frameworks for cooperation starting with areas where tangible results can be achieved." He added, "Rather than stopping at short-term responses, Korea should establish an international cooperation platform that can contribute to the formation of digital trade norms."

In the following panel discussion, experts examined Korea's digital trade and economic security issues from a Korean perspective and explored response strategies. The session was moderated by Lee Hanyoung, Professor of Economics at Chung-Ang University, and included the two presenters as well as Seo Jungmin, President of the Korea Institute for Trade Security Management; Kim Sangbae, Professor of Political Science and International Relations at Seoul National University; Han Hongyeol, Professor of Economics at Hanyang University; and Yoo Minhee, Research Fellow at the Korea Economic Research Institute.

Participants agreed that since Korea's digital regulations could become a key issue in future negotiations, it is necessary to develop concrete logic and solutions for each issue to ensure Korea's position is sufficiently reflected. They also pointed out that, as security and investment issues linked to digital policy may be brought to the negotiation table, the government must establish clear principles, and the public and private sectors should cooperate to prepare response logic in the national interest.

Kim Sangbae, Professor at Seoul National University, diagnosed that digital trade is expanding from a simple trade barrier to a "digital trade-security nexus" where economic security and national strategy are intertwined. Yoo Minhee, Research Fellow at the Korea Economic Research Institute, emphasized the need for differentiated responses by distinguishing between market issues and public sector data problems. Professor Lee Hanyoung pointed out that, to prevent the multifaceted nature of digital trade from becoming distorted and obscuring the essence of the hyper-innovation economy, collective intelligence must be continuously mobilized.

The FKI stated that, taking this seminar as an opportunity, the public and private sectors will closely cooperate to reorganize Korea's digital trade strategy and seek solutions that simultaneously strengthen industrial competitiveness and economic security.

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