Democratic South Korean President Lee Jae-myung has been fighting to deliver on his campaign promise of implementing E.U.-style digital regulations. Some American critics argue his legislation would stifle U.S. tech and give Beijing a free pass.
After then-President Yoon Suk Yeol declared martial law throughout South Korea in December 2024, he was impeached and a “caretaker” government was put in place until elections could be held. Lee was elected June 3 and sworn in June 4. In the days since assuming office, Lee has taken a hard line on digital regulation, and it’s making some in the U.S. uneasy. (RELATED: China-Friendly Liberal Projected To Become US Ally’s Next President)
Tami Overby, a top Asia trade expert, and former senior vice president for Asia and president of the U.S.-Korea Business Council at the U.S. Chamber of Commerce, respectively, spoke to The Daily Caller about the rising tensions among South Korea and the U.S.
US President Donald Trump and South Korean President Moon Jae-in hold a meeting in the Oval Office of the White House in Washington, DC, May 22, 2018. (Photo: SAUL LOEB/AFP via Getty Images)
“The average Korean tariff is like, 0.78%, less than 1%, so then it becomes the behind-the-border issues, the non-tariff barriers, or non-tariff measures, things like these regulations, where, again, it has a huge impact on U.S. companies,” Overby said, characterizing the PCPA as a “non-tariff barrier” that effectively achieves the same restrictive outcomes as traditional tariffs, just with less visibility.
The proposed law, the Platform Competition Protection Act (PCPA), finds inspiration in the Digital Markets Act of the European Union and has been a source of concern from U.S. lawmakers and trade officials.
Some officials argue that it unfairly targets American companies while giving Chinese companies a pass under the guise of consumer protection. The legislation outlines measures that the Korean government can use to target American companies.
“It doesn’t capture Temu, AliExpress, or TikTok. So it’s basically giving a free pass to the Chinese companies,” Overby said, saying that there carve-outs in the PCPA that offers Chinese companies less scrutiny as compared to their American counterparts.
In 2022, the European Union enacted the Digital Markets Act (DMA) to serve as a gatekeeper, aiming to promote competition by opening the tech sector to smaller companies and curbing digital monopolies. The legislation appeared to trigger significant economic losses across the E.U. and introduced new security vulnerabilities within the European digital ecosystem.
Lee Jae-myung, the presidential candidate for South Korea’s Democratic Party, delivers his final campaign speech. (Photo by ANTHONY WALLACE/AFP via Getty Images)
South Korea’s main opposition Democratic Party leader Lee Jae-myung delivers a public statement on the impeachment motion against acting president Han Duck-soo at the National Assembly in Seoul on December 27, 2024. South Korea’s acting president Han faced an impeachment vote on December 27, as the country struggled to shake off political turmoil sparked by his predecessor’s martial law declaration that shocked the world. (Photo by JUNG YEON-JE/AFP via Getty Images)
Republican Rep. Carol Miller of West Virginia introduced the U.S.-Republic of Korea Digital Trade Enforcement Act in May, directly confronting what she views as a growing threat to American tech interests abroad.
In a statement to the Daily Caller, Miller warned that South Korea’s PCPA “has detrimental national security concerns,” adding that “President Trump and congressional Republicans will not stand by and let foreign governments target U.S. companies.”
Policymakers fear South Korea’s PCPA could produce similar vulnerabilities, undermining app security and exposing U.S. technologies to hostile actors.
“We have similar feelings towards the issue,” Miller said, noting that she has been in contact with U.S. Trade Representative Jamieson Greer.
Overby moved to South Korea in the 1980s and has spent decades advising companies on U.S.-Asia trade.
“The E.U.’s approach, which, in my view, is too heavy-handed on the regulatory side, stifles innovation. It also discourages foreign investment. It can undermine job creation,” she said.
Overby underscored how the PCPA finds inspiration in the European Union’s Digital Markets Act (DMA), and how in her opinion it would result in similar outcomes for the Koreans. (RELATED: Chinese Exports Bound For US Plunge To 5-Year Low)
Miller echoed Overby’s parallels between the E.U. and South Korea, saying, “In the European Union, the Digital Markets Act, caused a digital winter in the region and stifled the growth of their digital sector. The passage of PCPA will certainly have similar repercussions for Korea.”
Pedestrians walk past an Apple Store in the Gangnam district of Seoul on September 14, 2023. (Photo by ANTHONY WALLACE/AFP via Getty Images)
Overby emphasized the U.S. won’t take this lying down, saying, “No one should think that President Trump would be afraid to slap those tariffs, those very high tariffs back on if he feels American companies are unfairly treated.” (RELATED: Trump Declares US-China Trade Deal ‘Done’ After London Talks)
Proponents of the legislation argue that it will usher in a new age of competition in South Korea’s digital economy. Framing it as a necessary antitrust measure, they point to the dominant market share held by major tech firms and the perceived barriers preventing smaller companies from entering the marketplace.
Supporters also point to key differences between the European Union’s digital marketplace and South Korea’s in response to criticism over the DMA’s shortcomings. They argue that structural factors, such as the presence of large domestic firms, make Korea’s regulatory approach more likely to succeed.
South Korea’s President Lee Jae-myung and his wife, First Lady Kim Hye-gyeong, board their plane at Seoul Air Base in Seongnam on June 16, 2025, before departing for Canada to attend the G7 summit. (Photo by ANTHONY WALLACE/AFP via Getty Images)
Lee is attending the G7 summit in Alberta, Canada, to promote South Korea’s digital agenda, with his office saying he hopes to hold bilateral talks with both the U.S. and Japan during the conference.
Miller emphasized that digital priorities, like the PCPA, “need to be addressed in the trade negotiations that President Trump is facilitating with other nations.”
