U.S. FTC Chair Visits Korea, Meets Business Leaders... Will He Address the Yellow Envelope Act and Online Platform Law?

Attending Seoul International Competition Forum Today
Meeting with AMCHAM Chairman Tomorrow
Listening to Concerns of U.S. Companies in Korea
Most Discussion Topics Kept Private
Represents Trump Administration’s Policy Direction
Expert in Antitrust Law and Fair Competition
Beyond Ceremonial Exchange with Korea
Unclear If Views Will Be Reflected in Actual Policy

Andrew Ferguson, the Chair of the U.S. Federal Trade Commission (FTC), who holds a position equivalent to Korea's Fair Trade Commission chief, is visiting South Korea this week to meet with business leaders. As he has consistently emphasized strong antitrust enforcement, platform regulation, and the protection of labor market competition, there is growing attention on what message he will deliver regarding the recent passage of the so-called Yellow Envelope Act (the amendment to the Trade Union Act) and the movement to establish an online platform law.

According to the government and business community on September 3, Andrew Ferguson, Chair of the U.S. Federal Trade Commission, arrived in South Korea to attend the 13th Seoul International Competition Forum, which is being held at the Shilla Hotel in Seoul on this day. After participating in the forum, he is scheduled to meet on September 4 with James Kim, Chairman of the American Chamber of Commerce in Korea (AMCHAM), as well as representatives from U.S. companies operating in Korea. A business official stated, "At the request of the FTC Chair, James Kim and the heads of member companies have agreed to hold a private meeting." Ferguson's desire to meet with member companies as well is interpreted as an effort to hear a wide range of opinions from U.S. businesses active in Korea.

This is the first time in 11 years that a U.S. FTC Chair has visited Korea since Edith Ramirez, then Chair, held a Korea-U.S. bilateral meeting with the Fair Trade Commission at the Plaza Hotel in Seoul in 2014. Through this visit, Ferguson is expected to explain the direction of the U.S. government's corporate regulatory policies and to directly listen to the challenges faced by U.S. companies in Korea. He was appointed last December by then President-elect Donald Trump. In Washington, he is regarded as a close associate who effectively represents the Trump administration's policy direction.

Ferguson's area of expertise is antitrust law and fair competition policy. As a lawyer, he has maintained a hardline stance on platform company regulation and merger reviews, leading the push for stronger regulation of big tech companies in the U.S. For this reason, issues such as regulating the market dominance of platform companies, cooperation on fair trade systems, and collaboration on merger reviews are likely to be major agenda items. These issues could have both direct and indirect impacts not only on domestic platform operators but also on large Korean conglomerates that compete or cooperate with U.S. platform companies. Data issues will also be a key topic at the Seoul International Competition Forum, where he is participating.

An official from the Korean IT industry commented, "There is a high possibility that issues such as network usage fees, online platform regulation, and the export of detailed maps-which have been pointed out as non-tariff trade barriers-will be discussed. We need to be especially vigilant to ensure that these do not lead to regulations that are disadvantageous only to domestic companies out of concern for trade friction."

At the same time, the business community is also paying close attention to any remarks regarding the Yellow Envelope Act. Passed by the National Assembly on August 24, this law allows subcontractor unions to demand negotiations with parent companies, which directly affects foreign companies as well. AMCHAM, which will meet with Ferguson, along with the European Chamber of Commerce in Korea, strongly opposed the bill during the legislative process. Immediately after its passage, they expressed concern, stating, "Uncertainty in the business environment directly affects corporate trust and long-term investment strategies."

Given that Ferguson will both explain the U.S. administration's antitrust and regulatory stance and directly hear the difficulties faced by companies operating in Korea during his visit, analysts suggest that this trip goes beyond a mere ceremonial exchange and could be directly linked to the strategic decisions of Korean companies.

A business official pointed out, "This can be seen as a move conscious of non-tariff barriers and various regulatory issues in line with the Trump administration's stance. Even though it is a venue for listening to companies' opinions, we will have to wait and see how these views will actually be reflected in policy."