Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
US claims Korea's new network law will negatively impact American tech giants' business
President Lee Jae Myung reaches for a pen to sign a guestbook during a meeting with U.S. President Donald Trump at the Roosevelt Room of the White House in Washington, Aug. 25, 2025. Courtesy of White House
By Lee Gyu-lee
Criticism over law revision raises trade conflict risks
The Donald Trump administration is intensifying criticism over Korea’s recent revision of the Information and Communications Network Act, which it claims impacts U.S. platform operators and undermines freedom of expression.
Concerns are mounting that the revised law — dubbed an “anti-fake news” measure — could become another point of contention between the two countries, particularly over what the U.S. characterizes as Korea’s nontariff barriers in digital services.
U.S. Under Secretary of State for Public Diplomacy Sarah Rogers warned that the amendment could undermine tech cooperation in a post on X, formerly Twitter, Tuesday.
“South Korea’s proposed amendment to its Network Act, ostensibly focused on redressing defamatory deepfakes, reaches much further — and endangers tech cooperation,” she wrote.
“Deepfakes are understandably concerning, but it’s better to give victims civil remedies than give regulators an invasive license for viewpoint-based censorship.”
The revised bill was passed by the ruling Democratic Party of Korea-led National Assembly and approved at a Cabinet meeting last month.
Set to take effect in July, the revised act seeks to curb the spread of illegal content, including manipulated or false information, across telecommunications networks, while imposing tougher penalties for violations.
Under the law, large platform operators are required to establish their own regulations against false information and take necessary measures, such as removing such content and suspending the accounts of users who post it.
These clauses were modeled after the European Union’s Digital Services Act (DSA), which imposes hefty fines on social media platforms operating in Europe if they fail to control illegal content and false information.
A day later, a U.S. Department of State spokesperson provided a written statement to Korean reporters in the U.S., stating that Washington has "significant concerns" about the law’s revision, which it says "negatively impacts the business of U.S.-based online platforms and undermines free expression."
The spokesperson added that Korea should avoid imposing "unnecessary barriers on digital services," emphasizing that the U.S. opposes censorship and remains committed to working with Korea to promote a free and open digital environment.
A screenshot of social media posts by U.S. Under Secretary of State for Public Diplomacy Sarah Rogers / Captured from X
The U.S. statements come amid ongoing claims from Washington that Seoul is pursuing digital regulations that would discriminate against U.S. tech and platform companies such as Meta and Google.
The U.S. has already taken issue with Korea's attempt to impose network usage fees for American content providers such as Google and Netflix and regulate monopolistic online platforms to prevent unfair practices against small merchants, as well as its reluctance to export high-precision map data to overseas companies including Google.
The U.S. has called these moves "nontariff barriers." A joint fact sheet on trade negotiations between the two countries, released in November, stated that the two countries "commit to ensure that U.S. companies are not discriminated against and do not face unnecessary barriers in terms of laws and policies concerning digital services, including network usage fees and online platform regulations."
Last month, the U.S. State Department imposed visa restrictions on five EU officials involved in drafting the DSA, accusing them of having “organized efforts to coerce American platforms to censor, demonetize and suppress American viewpoints they oppose.”
Attention is now focused on whether the Trump administration will raise similar objections to Korea's revised law, as its officials have reacted very sensitively to its digital service regulations.
Jang Sang-sik, head of trade trend analysis at the Korea International Trade Association, cautioned that policymakers should set clear, predictable rules consistent with global standards regarding the bill.
“I agree with the intent for the legislation to reduce consumer (user) harm from false or manipulated information,” he said.
“However, since it would also apply to global platforms operating in Korea, vague definitions or enforcement standards could lead Big Tech firms to over-self-censor or dampen digital cooperation, so ensuring procedural clarity and alignment with international norms is crucial.”