The U.S. nonprofit Competere Foundation said on the 22nd that if the Korean government continues policies that restrict major services of big tech corporations such as Apple, Google, and Microsoft (MS), the two countries could suffer economic losses totaling $1 trillion (about 1,400 trillion won).
In a research report released that day, the Competere Foundation said, "If policies continue to restrict major services such as online distribution, social media, maps, and logistics provided by U.S. big tech corporations to Korean customers, the United States is estimated to suffer economic losses of about $525 billion (about 750 trillion won)."
The report said, "The policies in question stem from the strong regulatory enforcement of Korea's Fair Trade Commission, based on the view that U.S. corporations hold an unfair advantage over Korean corporations," adding, "These regulations are designed to allow regulators to exercise the power to determine whether a particular corporation succeeds in the market."
It further warned that "Korea's regulatory policies risk intensifying trade conflicts between the two countries," and that "these regulations will dampen foreign direct investment (FDI), causing Korea as well to suffer about $469 billion in economic losses and inflicting greater damage on small and midsize businesses."
Representative Korean regulations cited in the report include the Fairness in Transactions Act (Fairness Act), the Online Platform Act (OP Act) led by the Fair Trade Commission, and antitrust regulations. The report pointed out, "These policies impose excessive regulatory burdens on U.S. corporations and restrict free market competition, ultimately creating an environment favorable to Korean corporations and, in the end, shifting the expense onto U.S. consumers."
Sanker Singham, chair of the Competere Foundation and former adviser to the U.S. Trade Representative (USTR), said, "Due to Korea's digital and competition policies, about $1 trillion in economic losses will occur in the United States and Korea over the next 10 years," adding, "Of that, the United States will bear about $525 billion in losses, which corresponds to an economic burden of about $3,800 per U.S. household."
Singham said, "These losses can be prevented if Korea halts negative policies and allows all corporations to compete in a fair market," adding, "If the Fair Trade Commission eases excessive regulations on foreign corporations, it will have a positive impact on the economic future of both countries and help ease trade tensions."