The South Korean government has been embroiled in a controversy over proposed regulations aimed at curbing the influence of major technology companies in the country. The Korea Fair Trade Commission initially announced plans to enact a law modeled after the European Union’s Digital Markets Act, which would designate certain companies as dominant platforms and limit their ability to expand into new areas. However, after facing backlash from industry lobbyists, consumers, and even the U.S. government, the commission decided to delay the formal introduction of the bill to gather more opinions.
The timing of the proposed regulations has been complicated by an upcoming general election in April, with President Yoon Suk Yeol’s conservative People Power Party seeking to gain control of the legislature from the opposition Democratic Party of Korea. While surveys have shown public support for regulation, the delay was seen as a temporary victory for South Korean internet firms, who argued that the legislation was unnecessary and would benefit emerging competitors from China.
The controversy highlights a growing appetite for more-stringent regulation of technology firms in Asia and South Korea’s concern about the influence of its powerful tech giants. The proposed regulations have also sparked protests from U.S. officials and added strain to economic ties between the two countries.
In response to the controversy, Baek Woon Sub, chairman of the Korea Platform Seller Organization, expressed skepticism about the potential impact of the regulations on small and midsize firms. He believes that the rules would eventually “trickle down” and hurt smaller players, ultimately making it difficult for them to survive. Despite the delay in the formal introduction of the bill, Baek believes that the Fair Trade Commission will eventually come after them. His comments reflect the apprehension and uncertainty surrounding the proposed regulations and their potential repercussions for the industry.
Overall, the controversy over the proposed regulations in South Korea has underscored the complex dynamics at play in the relationship between government, industry, and the tech sector, and raises important questions about the future of technology regulation in the country.