Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Next president may lock horns with Trump over online platform laws
The logos of Google, Apple, Facebook, Amazon and Microsoft are displayed on a mobile phone and a laptop screen in this photo taken, Dec. 18, 2020. AFP-Yonhap
By Park Jae-hyuk
Rival candidates intend to regulate monopolistic US tech giants
Korea's two leading presidential candidates have pledged to regulate monopolistic online platforms at the request of small business owners, despite strong opposition from the United States and tech giants.
Regardless of the outcome of the June 3 election, the next Korean president is expected to face pressure to address the issue during ongoing trade talks with the Donald Trump administration, which has branded Korea's attempts to tighten online platform regulations as a nontariff barrier.
Lee Jae-myung of the liberal Democratic Party of Korea (DPK) vowed to push through the Online Platform Act. He maintained a lead in opinion polls until Wednesday, after which the release of new surveys is prohibited under the Election Law.
"By introducing a law that prevents domestic and foreign platform operators from abusing their monopolistic power, we will foster innovation across industries and promote market competition," the DPK stated in the full version of Lee's pledge book, released Wednesday.
The party also said Lee will require large foreign platform operators to report their revenues in Korea. This measure follows longstanding concerns that Google and other U.S. tech firms have avoided paying corporate taxes in Korea by shifting earnings to affiliates in tax havens.
Amid ongoing disputes over network fees between Korean internet service providers and U.S. streaming platforms such as Netflix and YouTube, the liberal party pledged to enforce fair contracts for the use of Korean internet infrastructure.
Lee also vowed to ban forced in-app payment systems — a policy targeting Google and Apple, which have required Korean gaming companies to pay commissions to offer services through Google Play and the App Store.
Kim Moon-soo of the conservative People Power Party (PPP) also promised legislation to promote competition among platform operators and prevent market oligopolies.
"We will ensure fair competition in the platform market and protect user rights," the PPP said in Kim's pledge book, released Monday.
The PPP also proposed requiring major foreign platform operators to appoint Korean representatives and prevent the import of hazardous or uncertified products. These regulations, however, appear more focused on Chinese e-commerce platforms such as AliExpress and Temu than U.S. tech firms.
Korea Federation of Micro Enterprises (KFME) Chairman Song Chi-young, third from left, and the federation's members chant during a press conference at the KFME headquarters in Seoul, Wednesday, calling for the passing of the Online Platform Fairness Act. Yonhap
Even before former President Yoon Suk Yeol’s impeachment triggered the snap election, the DPK had pushed to pre-designate major online platform operators subject to stricter antitrust regulations.
Although the Fair Trade Commission had initially sought similar legislation under Yoon's presidency, it ultimately decided last year to revise the Fair Trade Act instead, targeting dominant players only when irregularities are uncovered.
However, the U.S. has objected to the proposed changes, warning of possible retaliation.
Last month, Republican Rep. Carol Miller reintroduced a bill urging the U.S. government to intervene if Korea imposes "unfair" regulations on U.S. platform operators.
She previously proposed a bill last September requiring the U.S. Trade Representative to notify the Congress of the potential impact of such regulations within 30 days of implementation, and for the Secretary of Commerce to take measures to protect U.S. firms. The bill did not pass before the 118th Congress ended.
During an online seminar hosted Wednesday by the Washington International Trade Association, U.S. experts reportedly voiced concerns over Korea's proposed online platform regulations being discussed at the National Assembly.
One of them is said to have warned that the rules could end up targeting only U.S. and Korean platforms while allowing Chinese companies to circumvent them. Similar concerns have been raised repeatedly by U.S. firms and business lobby groups, including the U.S. Chamber of Commerce, the American Chamber of Commerce in Korea and the Computer & Communications Industry Association.