South Korea’s antitrust regulator, the Korea Fair Trade Commission, announced plans to enact a law mirroring the European Union’s Digital Markets Act. This proposed law focused on curbing the influence of major technology companies and designating certain companies as dominant platforms, limiting their potential to expand. However, due to backlash from industry lobbyists, consumers, and the U.S. government, the plan was delayed with uncertain prospects for advancement.
Notably, South Korea’s homegrown internet giants – Naver, Kakao, and Coupang – played a significant role in lobbying against the proposed regulations. While Europe’s new rules have compelled tech giants to adjust their operations, the situation in South Korea is unique due to the dominance of its local companies in the digital sphere.
The proposed regulation, referred to as the Platform Competition Promotion Act, reflects a change in President Yoon Suk Yeol’s approach to overseeing tech companies. These developments come amidst tensions between the U.S. and South Korea concerning economic policies. It also coincides with South Korea’s strong public opinion supporting regulation as it heads into a crucial general election.
The delay in the proposed bill provides a temporary victory for South Korean internet firms, but the future implications remain uncertain. The bill’s potential impact on the economy and small and midsize firms is a cause for concern and continues to be a subject of widespread debate and speculation.
