South Korea’s digital platform regulations are emerging as a potential source of conflict as the U.S. under President Donald Trump ramps up its ‘America First’ trade policy. With the Korean government and lawmakers pushing for stricter competition rules for platforms and the Korea Fair Trade Commission (KFTC), the country’s antitrust regulator, investigating U.S. tech giants like Google, all eyes are on how the U.S. will respond.
The KFTC said on Feb. 13 that lawmakers proposed an amendment to the Fair Trade Act last October. The bill, introduced by People Power Party lawmaker Kang Min-kuk, aims to impose post-facto regulations on dominant platform operators. The main opposition Democratic Party of Korea is advocating for a bill to pre-designate dominant platform operators, establishing a preemptive regulatory framework for these platforms.
The proposed amendment would apply to Korean tech firms like Naver and Kakao and U.S. tech giants like Google, Apple, Meta, and Amazon. The Trump administration has condemned Korea’s approach to regulating digital platforms, claiming it unfairly discriminates against U.S. tech firms.
At the Senate Finance Committee confirmation hearing on Feb. 6, Jamieson Greer, Trump’s nominee for U.S. Trade Representative (USTR), criticized platform regulations in South Korea and the EU, calling them “unacceptable.” He warned that the U.S. could invoke Section 301 of the Trade Act to impose retaliatory tariffs if necessary. Section 301 allows the U.S. to impose countermeasures against foreign trade practices deemed unfair to the U.S., a provision the first Trump administration leveraged to pressure China and the EU.
The Trump administration has already taken a hardline stance against the EU’s antitrust battles with U.S. tech giants, threatening tariffs on European imports. Trump recently blasted EU regulators for targeting Apple, Google, and Meta, calling cases against them “a form of taxation.” The U.S. administration’s recent moves to raise tariffs on EU goods are seen as part of a broader effort to pressure EU regulators to roll back restrictions on American tech firms.
Trade experts warn that Korea could face similar pressure. The KFTC is currently investigating Google over alleged bundling practices related to YouTube Music, a case that some believe could be elevated into a full-scale trade dispute by Washington.
Previously, when the KFTC imposed sanctions on Microsoft, Qualcomm, and Google, the U.S. responded by citing concerns about potential violations of the Korea-U.S. Free Trade Agreement, but these cases did not lead to full-fledged trade retaliation. But with the Trump administration adopting a more aggressive stance, the Fair Trade Act amendments could become a target for U.S. countermeasures.
“If South Korea does not clarify its policy direction, it could invite stronger U.S. opposition and intervention,” said Lee Hwang, a professor at Korea University School of Law. He suggested that a pragmatic approach for the Korean government would be to enforce existing existing regulations in a way that minimizes trade friction.
The KFTC is closely monitoring the situation. “The Fair Trade Act amendments apply equally to domestic and foreign firms and are designed to align with global regulatory standards, such as the EU’s Digital Markets Act,” a KFTC official said. “We are keeping all options open given the uncertainty in the global trade environment.”
