---
title: "Proposed Online Platform Act Risks Chilling Innovation and Derailing US-Korea Trade Relations"
summary: |-
  Delaying further action on the proposed Online Platform Act is the right decision. It 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.
date: "2025-08-05"
content_type: "Press Releases"
canonical_url: "https://itif.org/publications/2025/08/05/proposed-online-platform-act-risks-chilling-innovation-and-derailing-us-korea-trade-relations/"
---

# 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](https://n.news.naver.com/mnews/article/056/0012002188) 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](https://itif.org/person/sejin-kim/), associate director of ITIF’s [Center for Korean Innovation and Competitiveness](https://itif.org/centers/korea/):

> *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](https://itif.org/publications/2025/07/24/koreas-new-fairness-act-risks-chilling-innovation-and-derailing-trade-talks/),” ITIF *Innovation Files* commentary, July 24, 2025.

---
*Source: Information Technology & Innovation Foundation (ITIF)*
*URL: https://itif.org/publications/2025/08/05/proposed-online-platform-act-risks-chilling-innovation-and-derailing-us-korea-trade-relations/*