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South Korea says revised network act is non-discriminatory, vows continued talks with U.S.

Created at 10 Jul · 2:35 AM1 source↑ Market-relevant
IN SHORT

South Korea's foreign ministry stated that a revised network act, effective Tuesday, does not discriminate against foreign companies. The ministry vowed to continue discussions with the U.S. to address concerns regarding the legislation, which aims to combat false and manipulated online information.

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Key Numbers

33 millionusers affected by Coupang data leak

Who's Involved

South Korea Foreign Ministry
stated revised network act is non-discriminatory
U.S. State Department
called on Seoul not to impose disproportionate burdens on American firms
Naver
major online platform operator subject to revised act
Kakao
major online platform operator subject to revised act
Google
major online platform operator subject to revised act
Meta
major online platform operator subject to revised act
X
major online platform operator subject to revised act
Coupang Inc.
e-commerce giant facing regulatory scrutiny
South Korea says revised network act is non-discriminatory, vows continued talks with U.S.

↳ Why This Matters

The dispute highlights potential friction between South Korea and the U.S. over digital regulation, with implications for American tech companies operating in South Korea and broader bilateral relations, particularly concerning data privacy and free speech online.

Key facts

  • South Korea's revised Information and Communications Network Act requires major online platforms to remove false and manipulated information.
  • The U.S. State Department expressed concern that the law could lead to excessive content regulation and undermine free speech.
  • South Korea's foreign ministry asserts the act is non-discriminatory towards domestic and foreign firms.
  • The ministry plans to maintain communication with the U.S. regarding the legislation's implementation.
  • The issue of regulatory probes into Coupang Inc. has also raised concerns about potential impacts on U.S.-South Korea relations.

South Korea's foreign ministry has asserted that a recently revised Information and Communications Network Act does not contain discriminatory provisions against foreign companies. The legislation, which took effect Tuesday, mandates major online platform operators, including domestic giants Naver and Kakao, as well as international players like Google, Meta, and X, to remove or block false and manipulated information.

The U.S. State Department had previously called on Seoul to avoid imposing "disproportionate" burdens on American firms under the revised law, warning that its implementation could lead to excessive content regulation and potentially undermine free speech.

The ministry clarified that the amendment was introduced to address societal harms stemming from changes in the digital environment and to enhance user protection. It emphasized that the law respects constitutional guarantees of freedom of expression and does not discriminate between domestic and foreign firms.

Seoul has been actively explaining the purpose and details of the legislation to the U.S. and other key stakeholders, and intends to maintain ongoing communication throughout the implementation process. Sources indicate that the issue may be a topic of discussion during high-level talks between South Korea and the U.S. scheduled for later this month in the Philippines, on the sidelines of the ASEAN Regional Forum.

This development occurs amidst existing tensions surrounding e-commerce firm Coupang Inc. A recent report from a U.S. House Judiciary Committee and a White House official criticized South Korea's regulatory investigations into Coupang's data leak as discriminatory towards U.S. companies. The South Korean government has refuted these claims, stating that its actions concerning Coupang have been fair and non-discriminatory. Coupang is under public and regulatory scrutiny following a significant data leak believed to have impacted over 33 million users in South Korea.

Frequently asked questions

The revised act requires major online platform operators to remove or block false and manipulated information to address social harms and strengthen user protection in the digital environment.

The U.S. State Department is concerned that the law could impose disproportionate burdens on American firms, lead to excessive content regulation, and undermine free speech.

South Korea's foreign ministry states the act is non-discriminatory, respects freedom of expression, and commits to continued communication with the U.S. during its implementation.

Recent U.S. criticism of South Korea's regulatory probes into Coupang's data leak as discriminatory has renewed concerns about the impact on U.S.-South Korea relations, paralleling the network act dispute.

What Happens Next

01The issue may be discussed at high-level talks between Seoul and Washington later this month.
02A second round of talks concerning civil uranium enrichment and spent nuclear fuel reprocessing is expected in July.

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Cadence

How It Developed

South Korea's revised Information and Communications Network Act took effect Tuesday.
The U.S. State Department urged Seoul not to impose disproportionate burdens on American firms under the new law.
South Korea's foreign ministry stated the act is non-discriminatory and respects freedom of expression.
The ministry committed to continued communication with the U.S. during the law's implementation.
The issue may be discussed at high-level talks between Seoul and Washington later this month.
Tensions also involve regulatory probes into e-commerce giant Coupang Inc., which the U.S. has criticized as discriminatory.

Sources

T1
S. Korea says revised network act nondiscriminatory, vows continued talks with U.S.Yonhap News Agency

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