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FIRST ON FOX: A new study says South Korea’s strict competition rules aimed at U.S. tech firms could cost both countries nearly $1 trillion in lost economic growth over 10 years. Research by the Competere Foundation, a nonprofit that educates policymakers on non-tariff barriers affecting global GDP, estimates that U.S. companies could lose $525 billion, while South Korean small businesses stand to lose about $469 billion. TRUMP URGED TO TAKE ON SOUTH KOREA OVER TECH REGULATIONS THAT TARGET US, SPARE CHINA The report points to aggressive enforcement by Korea’s Fair Trade Commission (KFTC), saying it unfairly limits U.S. tech firms and discourages foreign investment. "Ironically, while Korean officials are working to prevent U.S. companies like Apple, Coupang, Google and Microsoft from operating freely, our research shows Korea itself will lose an estimated $469 billion over ten years, including significant damage to the country’s small businesses," said Shanker Singham, president of the Competere Foundation, in a statement to FOX Business. Ticker Security Last Change Change % AAPL APPLE INC. 262.24 +9.95 +3.94% CPNG COUPANG INC 31.69 +0.48 +1.54% GOOGL ALPHABET INC. 256.55 +3.25 +1.28% MSFT MICROSOFT CORP. 516.79 +3.21 +0.63% He cautioned that Korea’s approach could have broader diplomatic and trade implications, underscoring the need for stronger U.S. engagement. NEW SOUTH KOREA LAW SEEN SHIELDING CHINA, TARGETING US TECH, RISKING TRADE CLASH "Not only are Korea’s actions harming America’s economy, but they’re also aggravating trade tensions. If the Trump administration resolves this, it will give President Donald Trump a unique chance to deliver a huge economic win for American families without spending a dime," Singham added. The report also cautions that smaller Korean businesses will bear the brunt of reduced foreign investment. It urges both governments, currently negotiating a trade deal, to prioritize regulatory reform to safeguard growth and strengthen U.S.–South Korea economic ties. TRUMP ISSUES ULTIMATUM, THREATENING TARIFFS OVER DIGITAL TAXES AND REGULATIONS Henry Haggard, former minister counselor for political affairs at the U.S. Embassy in Seoul, agreed that Korea’s regulatory approach risks backfiring. "These actions by Korean officials are stalling the ability of U.S. companies to operate freely and disincentivizing them from investing in South Korea," Haggard told FOX Business. "An unwelcoming investment environment could make the trade negotiations more complex and potentially more confrontational." CLICK HERE TO GET FOX BUSINESS ON THE GO He warned that some U.S. firms may scale back operations in South Korea, halt future investments or exit the market altogether. "This is leaving an opening for Chinese companies to gain a competitive advantage that are less deterred by irregular enforcement of rules and regulations. That’s bad for America and bad for national security," Haggard added.
