KITA Publishes Report on Country-by-Country Comparison and Implications of U.S.-Driven Digital Trade Issues
Call for a Balanced Strategy Between Digital Sovereignty and Trade Frictions
Digital trade conflicts, which are spreading with the United States at the center, are stemming from differences in regulatory approaches among countries, and analysts say that Korea also needs to overhaul its systems and respond strategically.
According to the report "Country-by-Country Comparison and Implications of U.S.-Driven Digital Trade Issues," published on the 3rd by the Institute for International Trade of the Korea International Trade Association, the rapid growth of the digital services market in recent years has triggered full-fledged trade frictions between countries over data transfer, online platform regulation, digital taxes, and artificial intelligence (AI) rules.
The report pointed out in particular that the United States is raising the level of trade pressure by even hinting at tariffs and export controls in response to foreign regulations it deems unfavorable to its own big tech (large information technology companies). The European Union (EU)'s Digital Markets Act (DMA) and Digital Services Act (DSA), various countries' data localization policies, and regulations on online platform monopolies were cited as representative sources of conflict.
By country, the EU has established a strong legislative framework that preemptively regulates abuse of market dominance by platforms, while Japan is pursuing phased regulations focused on transparency and fairness, and China is implementing strict data control policies that prioritize national security and data sovereignty. The United States views these regulations as discriminatory against its companies and is leaving open the possibility of trade retaliation.
The report broadly categorized digital trade issues into three main pillars: regulation of platform competition, data transfer and localization, and new technology rules such as AI, algorithms, and content management. It assessed that these three areas are highly likely to emerge as core agenda items in future trade negotiations.
In Korea's case, the overall level of digital market regulation is lower than the Organisation for Economic Co-operation and Development (OECD) average, but the overseas transfer of high-precision map data and location-based information was identified as a representative trade issue. High-precision maps, which are key infrastructure for autonomous driving, logistics, and mapping services, are assets directly linked to national security and industrial competitiveness, while at the same time being strongly demanded by global platform companies. As a result, Korea is being asked to strike a balance between digital sovereignty and trade frictions, the report explained.
The report also assessed that Korea faces potential dispute factors as discussions on fair regulation of online platforms and restrictions on cross-border transfers of personal data are proceeding simultaneously. Under the OECD Digital Services Trade Restrictiveness Index (DSTRI), Korea's level of regulation is relatively open and below the average, but it analyzed that the potential for disputes could expand depending on how future systems are designed.
The report recommended that Korea secure alignment with global standards, actively participate in digital trade agreements, clarify rules on data transfer, and at the same time pursue a phased and selective opening strategy for strategic data such as high-precision maps. A "balanced strategy" that secures digital sovereignty while minimizing clashes with trade partner countries was presented as a key task.
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