Model Estimates $525 Billion U.S. State Losses if South Korea Adopts Online Platform Rules

A Competere Foundation model estimates $525 billion in lost economic activity for U.S. states over the next decade if South Korea enacts the Online Platform Fairness Act. The measure would expand the Korea Fair Trade Commission's oversight of transactions involving some American companies.

The model projects the largest losses in California at $123 billion, followed by Texas at $48.7 billion, New York at $33.9 billion, and Washington at $27.4 billion. The bill remains pending in South Korea's National Assembly.

More than 50 House members sent a letter to South Korean officials in April citing concerns over regulatory actions they described as discriminatory toward American firms. The letter referenced earlier Competere research that estimated combined U.S. and South Korean economic damage of $1 trillion over ten years.

Rep. Darrell Issa stated that South Korea's trade commission actions resemble regulatory approaches that diverge from free-market principles.

Party holds a majority in the National Assembly. President Lee Jae-myung took office in 2025 after winning election that year. The Korea Fair Trade Commission recently fined Coupang $410 million in connection with a data breach involving a former employee.

A South Korean embassy spokesperson said the penalty was consistent with those applied to domestic companies in similar cases. Shanker Singham, CEO of the Competere Foundation, said the proposed rules would make South Korea a less favorable environment for U.S. companies.