[Public Voices] In the Trump 2.0 Era, Online Platform Regulation Must Become Strategy

U.S. Intensifies Pressure on Korea's Online Platform Laws
Trade Friction Deepens Over "Discriminatory Measures" Against American Tech Firms
Strategic Digital Alliance Needed Amid AI Era and Global Competition

Seongmin Jeon, Professor of Business Administration at Gachon University (Former President of the Korean Venture Startup Association)

Recently, regulation of online platforms has emerged as a key issue on the international trade stage. With the launch of the second Trump administration in the United States, the "America First" policy stance has been further strengthened, and pressure in the field of digital services is intensifying. In particular, the United States regards overseas regulations on its own platform companies as "discriminatory measures" and has shown a strong reaction to the legislative efforts in South Korea.

The biggest controversy centers on the "Online Platform Act." The proposed legislation, which is divided into monopoly regulation and fair trade laws, includes provisions such as prohibiting self-preferencing by platforms and mandating the disclosure of algorithms. In early July, 43 members of the U.S. House of Representatives requested that the U.S. Trade Representative (USTR), the Department of the Treasury, and the Department of Commerce intervene, arguing that these bills excessively target American companies. Related organizations, including the Computer & Communications Industry Association (CCIA), have also publicly opposed the monopoly regulation and fair trade bills, defining them as "non-tariff barriers to digital trade."

The concerns of the United States are not limited to economic issues. Amid the technological hegemony competition with China, there is a significant worry that if American platform companies face unfavorable treatment in other countries, their global market position could weaken. In particular, if there is a perception that South Korea is applying relatively lenient regulations to Chinese platform companies while focusing regulations on American firms, trade conflicts could intensify further. Platforms have already become recognized worldwide as "national strategic assets," and both the United States and China are utilizing platforms as tools for industrial policy, security, and governance. China has established "national platform capitalism" based on data control and dominance over digital infrastructure, and the United States is also pursuing strategies to strengthen its global leadership across platform technologies such as AI, cloud computing, and semiconductors.

South Korea is no exception to these global trends. Since the issue is not simply "regulation versus promotion," a complex solution is needed that takes into account national competitiveness, the industrial ecosystem, and trade strategy. First, there is a need for short-term policies to ease trade friction. For example, measures to lower excessive entry barriers for AI, platforms, and startups should be considered, but it must be made clear that these are not simply responses to trade friction, but rather institutional improvements for domestic industrial innovation.

In addition, it is necessary to shift the approach toward strengthening AI and platform cooperation between South Korea and the United States. South Korea possesses outstanding technology, infrastructure, and talent. The United States, too, needs a reliable partner to secure a clear advantage in the global AI competition. Leveraging this, a strategy is needed to transform the debate from simple regulation into a strategic digital alliance. In this process, it is important to craft a sophisticated policy mix that simultaneously realizes the values of fairness, competitiveness, and consumer trust. Excessive preemptive regulation could hinder the growth of startups, while avoiding regulation could lead to monopolies and consumer harm.

The platform industry is a complex field where technology, trade, and industrial strategy intersect. South Korea should not view this industry solely as an object of control or protection, but rather recognize it as a core infrastructure supporting the nation's future and develop policy capabilities for its sophisticated management. If South Korea responds strategically to the current trade conflict based on the recognition that AI, platforms, and startups are the future of the Korean economy, it could actually create new opportunities for growth.

Seongmin Jeon, Professor of Business Administration at Gachon University, Former President of the Korean Venture Startup Association