US IT Industry Urges Elimination of Korea's Digital Trade Barriers at Summit

Six Organizations Including CCIA Send Letter to US Secretary of Commerce
Highlight Online Platform Act and Restrictions on Export of High-Resolution Mapping Data

Five days ahead of the South Korea-US summit, the US information technology (IT) industry has urged authorities to take active measures to eliminate digital trade barriers.

President Lee Jae Myung (left) and US President Donald Trump. Photo by Asia Economy DB

On August 19 (local time), six related associations and organizations, including the US Chamber of Commerce and the Computer & Communications Industry Association (CCIA), sent a joint letter to US Secretary of Commerce Howard Lutnick expressing their concerns, stating, "We are concerned that the Korean government has not made a clear commitment regarding the elimination of digital trade barriers."

The trade barriers cited include: ▲ the push for an Online Platform Act ▲ restrictions on the export of high-resolution mapping data by US companies ▲ discrimination against foreign companies due to the Cloud Security Certification Program (CSAP) and public network separation regulations ▲ and the pursuit of artificial intelligence (AI) legislation similar to that of the European Union (EU).

They emphasized, "As confirmed in the US Trade Representative (USTR) report and letters from Republican members of the US House of Representatives, digital trade barriers against US companies in the Korean market are issues that require attention both in terms of scale and impact," adding, "US companies must compete not only with Korean firms but also respond to the Korean government, which regularly intervenes in the market."

They further argued, "The US government must secure a commitment from Korea at the summit that it will not arbitrarily regulate companies through measures such as the Online Platform Act," and insisted, "An agreement should also be included stating that the Korean government will not disadvantage US companies and others."

They added, "A provision must be included allowing US companies access to the full range of Korean mapping services, including high-resolution maps," noting, "Korea is the only major US ally that blocks the export of mapping data."

Jonathan McHale, Vice President of the CCIA, stated in a separate document, "Behind Korea’s innovative companies and fair market, the country has long maintained protectionist policies that disadvantage US products and services," and argued, "With Korea’s trade surplus with the US increasing, Korea is obligated under its trade agreements with the US to open its market to competitive American companies."

He added, "With the easing of trade barriers progressing slowly, the upcoming South Korea-US summit next week is an unprecedented opportunity to address this issue," and urged, "Both governments should actively seize this opportunity, and Korea should move toward a fair and open market."

The CCIA is an association that includes big tech companies such as Google and Amazon. President Lee Jae Myung is scheduled to meet with US President Donald Trump at the White House in Washington, DC, on August 25 to discuss trade and security issues.