Korean regulators risk undermining US-Korea trade, tech alliance, expert says

A US trade and technology expert, Nigel Cory, director of trade and technology at Crowell Global Advisors, criticized South Korean regulators for unevenly applying rules that disadvantage US companies, warning that Seoul's digital regulation approach could undermine the US-Korea trade and technology alliance. Citing Korean FTC data, Cory noted that US companies accounted for seven of the ten largest abuse-of-dominance fines and 95.5 percent of total penalties, and he highlighted potential fines against Google and Analog Devices. He urged Seoul to address the issue through ongoing trade talks to avoid broader bilateral friction.

A US trade and technology expert has criticized South Korean regulators for applying rules unevenly in ways that disadvantage US companies, warning that Seoul’s approach to digital regulation could undermine the expanding US-Korea trade and technology alliance. Nigel Cory, director of trade and technology at consulting firm Crowell Global Advisors and a non-resident fellow at the National Bureau of Asian Research, said in a recent article published by The National Interest that Seoul’s treatment of US technology companies were raising concern in Washington. He argued that Korea risks creating broader trade friction with Washington even as the two countries deepen cooperation in artificial intelligence, semiconductors, shipbuilding and advanced manufacturing. Cory cited President Lee Jae Myung’s July 24 AI summit in San Francisco, where Samsung and SK Group announced major AI partnerships with Nvidia, Broadcom and other US companies. Cooperation is also expanding in shipbuilding and manufacturing, while AWS is investing 7.85 trillion won $5.6 billion in Korean cloud infrastructure through 2027. “Deep trade friction over digital issues threatens the very trust needed for the bilateral relationship to thrive,” Cory said. Cory focused much of his criticism on the Korea Fair Trade Commission, citing a July report from the US House Judiciary Committee’s antitrust subcommittee that accused Korea of discriminatory treatment of American-owned businesses. US companies accounted for seven of the 10 largest abuse-of-dominance fines imposed by the Korean FTC and 95.5 percent of the total penalties, Cory said, citing Korean FTC data. “Despite the South Korean government’s assertions that its policies and enforcement are non-discriminatory, mounting evidence points to persistent protectionist barriers and a regulatory enforcement record that falls hardest on US technology firms," he said. He also pointed to enforcement actions against Google, US chipmaker Analog Devices and Coupang. The KFTC is reportedly considering a $550 million fine against Google and has proposed penalties of up to $34 million against Analog Devices. Coupang has faced investigations by more than 10 Korean agencies, including a record $409 million privacy fine in June and a special tax assessment of about $213 million in July. “The KFTC will argue that large fines simply reflect large market positions,” Cory wrote. “But market share alone fails to explain which cases get opened, how they’re publicized, or how many Korean regulatory agencies then pile on, often to the benefit of local competitors.” Cory said Washington no longer views such regulatory targeting as incidental, warning that concerns are gaining attention as the Trump administration takes a tougher stance against foreign rules it considers unfair to US tech companies. He urged Seoul to address the issue through ongoing trade talks before it spills into the broader bilateral relationship. “Reform deepens an alliance and technology partnership that has served both countries well,” he wrote. “Inaction invites a fight that puts far more than technology at risk.” sahn@heraldcorp.com