Note: The following is a reformatted version of the provided article. It has been structured for readability and aesthetic presentation without altering the original facts, wording, or neutral tone.
Proposed South Korean Law Threatens Billions in U.S. Economic Activity
The "Online Platform Fairness Act", introduced by South Korea’s Korea Fair Trade Commission (KFTC), has received backing from President Lee Jae-myung. The bill is designed to expand the KFTC’s regulatory power over transactions involving U.S. firms.
A new model estimates $525 billion in lost economic activity for U.S. states over the next decade.
According to a Competere Foundation model, the economic impact would be severe:
- $123 billion for California
- $48.7 billion for Texas
- $33.9 billion for New York
- $27.4 billion for Washington
Political and Regulatory Context
South Korea’s political landscape shifted following the victory of Democratic Party candidate Lee Jae-myung in the 2025 presidential election. The Democratic Party now holds a majority in the National Assembly, facilitating the bill's advancement.
Earlier this year, in April 2025, over 50 U.S. House members sent a letter to South Korea’s ambassador expressing concern over what they described as discriminatory business practices against U.S. companies.
In June 2025, South Korean regulators fined the U.S. company Coupang approximately $410 million for a data breach involving a Chinese national former employee.
U.S. Officials and Analysts Respond
Rep. Darrell Issa (R-CA) voiced concern over what he sees as a pattern of restrictions, pointing to a 20-year ban on Google Maps in South Korea.
"Korea is an increasingly unfriendly place for US companies to do business."
Shanker Singham, CEO of the Competere Foundation, warned that the environment for American businesses in South Korea is deteriorating.
Former Rep. Chris Stewart (R-UT) offered a strategic critique, arguing that South Korea’s campaign against U.S. companies is a strategic mistake that ultimately benefits China.