Proposed Online Platform Act Risks Chilling Innovation and Derailing US-Korea Trade Relations
WASHINGTON—Following a decision by the Democratic Party of Korea to postpone further action on the proposed Online Platform Act until after U.S.-Korea trade talks, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Sejin Kim, associate director of ITIF’s Center for Korean Innovation and Competitiveness:
Delaying further action on the proposed Online Platform Act is the right decision. As currently conceived, the measure would create barriers to entry that stifle the growth of smaller firms, while distorting market incentives and penalizing standard commercial practices of larger firms. By enabling direct regulatory targeting of U.S. digital firms, it also raises concerns over discriminatory treatment and market access. Korean officials should take those concerns seriously at the upcoming U.S.-Korea trade talks.
For more on this issue, see:
- Lilla Nóra Kiss and Hilal Aka, “Korea’s New Fairness Act Risks Chilling Innovation and Derailing Trade Talks,” ITIF Innovation Files commentary, July 24, 2025.
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The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.
