U.S. Raises Concerns Over Korea’s Digital Rules as Trade Tensions Resurface (Image supported by ChatGPT)
SEOUL, Jan. 27 (Korea Bizwire) — The South Korean government has received a letter from the United States raising concerns over Seoul’s push to tighten digital regulations, officials said Tuesday, as questions grow over whether the issue has become entangled in a widening trade dispute between the two allies.
The letter, sent about two weeks ago to Science Minister Bae Kyung-hoon and shared with the Ministry of Trade, Industry and Resources, arrived just ahead of President Donald Trump’s announcement that the United States would restore so-called reciprocal tariffs on South Korean goods to 25 percent.
While officials initially declined to describe the contents of the message, citing diplomatic protocol, the industry ministry later confirmed that the letter focused largely on Korea’s digital regulatory agenda. It said the communication was not directly linked to Mr. Trump’s claim that Seoul had failed to fulfill commitments under a bilateral trade agreement finalized in October.
Earlier Tuesday, Mr. Trump said the tariff increase — up from 15 percent — was prompted by delays in South Korea’s approval of legislation intended to support a $350 billion investment pledge to the United States. The bill, submitted to the National Assembly in November by the ruling Democratic Party, has yet to clear parliament.
This image, captured from U.S. President Donald Trump’s Truth Social account, shows his announcement of a decision to increase reciprocal tariffs and auto duties on South Korea. (Yonhap)
The announcement set off urgent political maneuvering in Seoul. Finance Minister Koo Yun-cheol later urged lawmakers across party lines to move swiftly on the legislation, according to opposition officials briefed on a closed-door meeting.
“Our government has not yet received anything through official channels,” Representative Lim Lee-ja of the conservative People Power Party quoted Mr. Koo as saying, adding that the situation remained fluid and could become clearer over the weekend.
Trade diplomacy is also expected to intensify. Industry Minister Kim Jung-kwan, currently visiting Canada, is preparing to travel to Washington for talks with Commerce Secretary Howard Lutnick, according to officials.
Yet many analysts in Seoul believe the tariff move may reflect more than frustration over legislative timing. Attention has increasingly turned to South Korea’s efforts to strengthen oversight of dominant digital platforms — a policy push that has drawn quiet but persistent resistance from Washington.
Those tensions have been amplified by an ongoing Korean investigation into Coupang, the U.S.-listed e-commerce giant, following a large-scale data breach. American lawmakers and investors have criticized the probe as discriminatory, while the State Department last month voiced “significant concerns” about regulatory changes that could affect global platform companies operating in Korea.
The issue surfaced again last week during talks between Prime Minister Kim Min-seok and Vice President JD Vance, according to South Korean officials. The two sides agreed to manage the matter carefully to prevent it from spilling into broader diplomatic friction.
For Seoul, the episode underscores a delicate balancing act: advancing domestic digital rules aimed at consumer protection and market fairness, while navigating growing pressure from its most important security and economic partner — at a moment when trade, technology and politics are becoming ever more tightly intertwined.
M. H. Lee (mhlee@koreabizwire.com)
