Leveraging Regulatory Easing as a Bargaining Chip
U.S. Raises "Discrimination Concerns" Over Onple Law Legislation... Government Says "Same Standards Apply to Domestic and Foreign Companies"
Google and Apple Reapply for Map Data Export... "Decision Expected in August with Security Considerations"
As U.S. President Donald Trump once again raises the issue of "non-tariff barriers," the South Korean government's digital regulatory policies are emerging as a key variable. In particular, the United States is once again highlighting the Online Platform Act (Onple Law), which it has previously pointed to as a non-tariff barrier (referring to all forms of trade restrictions other than tariffs), as well as the issue of restrictions on the overseas transfer of high-precision maps.
According to the Fair Trade Commission, the Ministry of Land, Infrastructure and Transport, and other relevant agencies on July 9, the South Korean government is adjusting its response after President Trump recently sent an official letter, focusing on the possibility that domestic digital regulations could become a bargaining chip in U.S. trade negotiations. In the letter, the United States stated that it "could consider readjustment if non-tariff barriers are eliminated," signaling an intention to use high tariffs as leverage to spur discussions on regulatory easing.
In particular, the Onple Law has already been identified multiple times by the U.S. Trade Representative (USTR) as a non-tariff barrier, with repeated demands that it not be enacted. This bill aims to regulate unfair practices by online platforms in their dealings with partner businesses or consumers. It is structured to designate certain platform operators and impose preemptive obligations on them. The United States views this as similar to the European Union's Digital Markets Act (DMA) and is concerned about the potential for discrimination against American companies.
Regarding this, an official from the Fair Trade Commission said, "We are working to coordinate with the Ministry of Trade, Industry and Energy and other relevant trade authorities to communicate with the U.S. side by August 1," adding, "To prevent trade issues from arising, we will proceed based on the principle of applying the same standards to both domestic and foreign businesses."
The United States is also designating the restriction on the overseas transfer of high-precision map data as a non-tariff barrier, alongside the Onple Law. Under current law, foreign companies must obtain government approval to export South Korea's high-precision maps for mapping services. Currently, Google and Apple have applied for the overseas transfer of 1:5,000 scale high-precision maps. A consultative body under the National Geographic Information Institute, consisting of officials from the Ministry of Land, Infrastructure and Transport, the Ministry of National Defense, the Ministry of Foreign Affairs, and the National Intelligence Service, reviews these applications by unanimous decision.
Google previously applied for map export in 2007 and 2016, while Apple applied in 2023, but all applications were rejected for security reasons. The United States views this as a barrier to entry for digital services. An official from the Ministry of Land, Infrastructure and Transport explained, "Since this issue is directly connected to national security, the position of the security authorities is the most important," adding, "While it cannot be said that trade issues have no influence at all, the principle is to make decisions independently of such considerations."
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