AI and Cloud Drive Digital Trade Boom (Image courtesy of Yonhap)
SEOUL, Oct. 10 (Korea Bizwire) — As global demand for digital services such as artificial intelligence and cloud computing accelerates, a new report warns that South Korea must develop a sustainable and balanced approach to digital trade that aligns openness with technological sovereignty.
According to a study released Thursday by the Korea Chamber of Commerce and Industry’s Sustainable Growth Initiative (SGI), exports of digital transmission services soared from $539.1 billion in 2010 to $1.62 trillion in 2024 — more than tripling in just over a decade.
While traditional goods exports fluctuated over the same period, digital trade continued to grow steadily, weathering global crises such as the financial meltdown and the COVID-19 pandemic.
The report notes that digital trade is increasingly shaped by competing national rules governing data transfer and usage. The United States and Japan prioritize the free flow of data, the European Union emphasizes data protection and “digital sovereignty,” and China enforces strict data localization and security policies.
South Korea, the study found, sits somewhere in the middle. Based on the OECD’s Digital Services Trade Restrictiveness Index, Korea’s regulatory environment is more restrictive than that of the U.S. (+0.02) and Japan (+0.04) but more open than the EU (-0.02) and China (-0.26).
To sustain growth, SGI outlined three priorities for Seoul: balancing openness with technological sovereignty, ensuring consistency with international norms, and leading in global standard-setting.
The report stresses the need to distinguish between sectors that rely on openness and collaboration — such as AI, cloud computing, and autonomous driving — and those requiring tighter security due to their strategic or defense implications.
It also cautioned against both full liberalization and rigid protectionism, urging instead a “sustainable openness” model that harmonizes domestic laws with international frameworks to prevent regulatory fragmentation.
These debates are expected to take center stage later this month at the Asia-Pacific Economic Cooperation (APEC) CEO Summit and Leaders’ Meeting, where digital economy and governance issues will be discussed.
The KCCI said the gatherings present an opportunity for Korea to play a leading role in shaping global digital trade norms, particularly through its proposed “APEC AI Initiative.”
M. H. Lee (mhlee@koreabizwire.com)
