Asia-Pacific

Democratic allies should co-invest, co-develop, and co-regulate emerging technologies instead of fragmenting digital markets. True leadership will come from joint strategies on export controls, standards, R&D, and talent—not sovereignty slogans.

Some experts argue that stronger enforcement and new statutes are needed to level the playing field, curb abuses of market power, and protect consumers. Others caution that excessive regulation could stifle innovation, harm both small and large businesses, and weaken Korea’s global competitiveness. To shed light on these critical questions, ITIF convened an online debate in Korean.

If enacted, the draft law may inadvertently harm Vietnamese consumers, stifle digital innovation, and complicate bilateral trade relations between the United States and Vietnam to the detriment of both nations.

Korea has entered the global top four economies in innovation, powered by world-class research intensity and corporate R&D. Amid a persistent input–output gap and weak startup M&A activity, the challenge now is scale: converting knowledge into globally competitive firms.

Rather than blanket social media bans, policymakers should adopt privacy-preserving tools that empower parents and teens to manage online safety directly.

Korea has a choice. It can show the world how to integrate strategy, promotion, and regulation in a way that builds both trust and competitiveness. Or it can serve as a cautionary tale of how regulatory overreach strangles innovation.

By uniting strategy, promotion, and regulation in a single law, South Korea has given itself a powerful instrument to shape AI—but its blunt regulatory mandates threaten to drag down the very strengths that make the act ambitious.

Korea’s incoming KFTC leadership should oppose reviving ex ante platform regulation. Such rules are unnecessary, rest on flawed premises, and would weaken both innovation and strategic alliances.

Korea needs stronger domestic policies to shore up its advanced industries, such as restoring a robust investment tax credit and expanding its weak R&D tax credit. But without working with allies, Korea will not win versus China.

If Korea wants a won stablecoin that matters, give it work on day one: Settle spot ETF trades; connect to tokenized securities (STO); cut remittance costs; and settle cross-border B2B invoices in KRW with fewer hops. Without real uses, the token drifts into speculation.