Members of the Foreign Affairs and Unification Committee review copies of the “Joint Fact Sheet,” the outcome of the South Korea–U.S. tariff and security negotiations, during a full committee meeting at the National Assembly in Yeouido, Seoul, on November 14. (Yonhap)
SEOUL, Nov. 14 (Korea Bizwire) — South Korea and the United States have agreed to strengthen digital trade freedoms and prevent discriminatory regulation against American firms operating in Korea, according to a joint fact sheet released Friday by the presidential office.
Under the agreement, the two governments pledged to ensure that U.S. companies are not subjected to discriminatory treatment or “unnecessary barriers” in areas such as network usage fees and online platform regulations — policy fronts that Washington has closely monitored in recent years.
The two sides also committed to facilitating cross-border data flows, including for geolocation, reinsurance and personal information, and jointly endorsed permanently extending the World Trade Organization’s moratorium on customs duties for digital transmissions.
The move is expected to ease concerns among U.S. tech giants like Google and Netflix, which have pushed back against Korea’s push for network usage fees — payments from content providers to internet service operators based on traffic volume.
While Korean telecom firms and some lawmakers accuse foreign platforms of “free-riding” on local networks, U.S. companies argue the fees amount to excessive and unfair costs.
The agreement comes as Korea continues to debate its forthcoming Online Platform Act, which aims to curb market dominance, restrict unfair practices, and increase transparency among large digital platforms. U.S. officials have previously expressed concern that such rules could disproportionately affect American firms.
The pact may also influence long-running disputes over Google’s requests to export high-precision Korean map data. While the agreement could benefit non-sensitive commercial data transfers, experts note that restrictions tied to military or national-security concerns are likely to remain intact.
Industry analysts say the agreement does not significantly disadvantage Korean companies but underscores the need for consistent regulatory enforcement across domestic and foreign firms.
“The wording may seem to favor the U.S., but there are no explicit advantages granted,” one ICT expert said. “Debates will continue, and both sides will likely negotiate through mutual concessions.”
Another legal expert added that while Korea has not deliberately disadvantaged U.S. firms in the past, the government must apply rules evenly to avoid “reverse discrimination” arising from weaker enforcement against foreign platforms.
Kevin Lee (kevinlee@koreabizwire.com)
