More than 50 Republican members of the US House of Representatives have taken action against a bill under discussion in South Korea that they claim targets American technology companies. Representatives led by Darrell Issa accused the Seoul administration of pursuing discriminatory policies against US companies and shifting economic advantage to China-linked competitors.
The Online Platform Justice Act, prepared by the South Korea Fair Trade Commission (KFTC) and supported by the country's left-wing President Lee Jae-myung, aims to regulate transactions with American companies. According to modeling by the Competere Foundation, the law could cause $525 billion in economic losses in US states over the next 10 years.
Heavy state-level impact
The model also revealed the distribution of losses across states. Accordingly, California could face an economic contraction of $123 billion, Texas $48.7 billion, New York $33.9 billion, and Washington $27.4 billion.
In a statement to Fox News Digital, Representative Issa said, "South Korea is an American ally and an economic success story, which is why recent and ongoing actions restricting American companies, such as the 20-year ban on Google Maps, are so concerning." Issa argued that the country's current trade commission has moved away from the free market tradition.
'Strategic mistake that benefits China'
Former Utah Representative Chris Stewart also warned that South Korea's tendency to increase regulatory burdens would affect not only technology companies but also a broader economic framework. Stewart said, "South Korea's campaign against American companies is not just a trade issue but a strategic mistake that benefits China."
Stewart noted that each time Korean regulators make it harder for US innovators like Coupang, Google, or Meta to compete, it opens more space for Chinese companies to gain market share and influence in one of the world's most important digital economies.
Record fine for Coupang
Another aspect of the tension is the fine imposed on US-based technology company Coupang. In early June, South Korea fined Coupang approximately $410 million for a data breach. This is the highest fine the country has ever imposed on a similar charge.
South Korea's Ministry of Science announced that a former Coupang employee of Chinese nationality stole customer data, including information of South Korean citizens. South Korean Embassy spokesman Minseong Seo argued that the investigation is proportional to the nature of the data breach and consistent with penalties applied to Korean companies in similar cases.
Letter from the House of Representatives
In April, 50 House members sent a letter to South Korea's Ambassador to Washington Kyung-wha Kang expressing concerns about business practices they described as "discriminatory." Citing a previous report by the Competere Foundation, the letter stated that strict regulations in South Korea could cause a total of $1 trillion in losses to the US and Korean economies over 10 years, and each American household could lose approximately $4,000.
