The Donald Trump administration’s weaponization of tariffs strategy, which includes invoking Section 301 of the Trade Act, is gaining momentum and intensifying pressure on South Korea’s domestic digital policies.
Last week, Google was granted permission to export high-precision maps, and the U.S. Trade Representative (USTR) must decide by March 7 whether to initiate a Section 301 investigation in response to petitions from U.S. investors in Coupang. These investors are protesting the South Korean government’s handling of the Coupang data leak incident. If the investigation proceeds, other digital policies labeled as non-tariff trade barriers could also face tariff pressure.
Experts believe that while the anticipated Section 301 investigation could significantly burden South Korea’s digital policy initiatives, if the country must adjust its key digital policies for trade cooperation, it should adopt a compromise strategy that prioritizes national interests and aims to gain what can be gained.
Section 301 Investigation Decision Looms Over Coupang Incident
According to information technology (IT) industry sources on Monday, USTR representative Jamieson Greer recently stated in a Fox Business Radio interview that the administration is considering raising the current 10% global tariff to 15% for certain countries. He added that they are preparing Section 301 investigations into unfair trade practices of various nations and are already reviewing several cases.
Following a U.S. Supreme Court ruling on reciprocal tariffs, the Trump administration has been imposing a 10% global tariff for 150 days under Section 122 of the Trade Act. This move suggests a potential increase of tariffs up to 15% on a country-specific basis, coupled with additional tariff hikes through Section 301 investigations.
The Section 301 investigation is also linked to the Coupang data leak incident. On January 22, before the Supreme Court ruling, U.S. investors in Coupang petitioned the USTR, alleging unfair and discriminatory treatment by the South Korean government in handling the Coupang incident. The USTR must decide by March 7, within 45 days of receiving the petition, whether to initiate the investigation.
Map Export Allowed, but Online Platform Law and Telecom Investment Limits Remain Unresolved
With the recent approval of high-precision map exports for Google, attention now turns to the future direction of other digital policies. The remaining related policies are stalled amid uncertain circumstances.
The USTR’s 2025 National Trade Estimate Report identified several trade barriers, including regulations on online platform monopolies, fees imposed by domestic Internet Service Providers (ISPs) on global content providers, barriers to entry for public cloud services, and restrictions on foreign investments in telecommunications and broadcasting.
The domestic online platform policy, commonly known as the Online Platform Law, currently has 19 bills pending for about 18 months. The government and ruling party are attempting to address U.S. concerns by separating monopoly regulations into two laws: the Fair Trade Act and the Online Platform Law. However, they appear to be postponing discussions until trade uncertainties are resolved.
Foreign investment restrictions in South Korea’s broadcasting and telecommunications sectors are also viewed as trade barriers. Current laws limit foreign ownership in telecommunications operators to 49%, and in general programming and news channels to 20%. Foreign investment in terrestrial broadcasting is prohibited, and foreign ownership in news agencies is capped at 25%.
While the telecommunications industry opposes further easing of foreign ownership restrictions, the government argues that indirect investment is already permitted under the Korea-U.S. Free Trade Agreement (FTA), so practical market access is not fully blocked. They believe this issue is unlikely to become a major point of contention in trade negotiations.
Trade Negotiations as a Package Deal: Prioritizing National Interests with Strategic Compromise
Experts suggest that while prioritizing national interests, South Korea should view trade negotiations as a package deal and seek common ground with the U.S. on compromise strategies. Given that the Section 301 investigation adds uncertainty to the trade environment surrounding digital policies, they argue that the government needs to provide clear guidelines.
Professor Heo Yoon from Sogang University’s Graduate School of International Studies stated that the USTR has consistently labeled South Korea’s digital regulations as non-tariff barriers, so the Section 301 investigation indeed poses significant pressure. However, trade negotiations encompass various areas such as diplomacy, security, economy, and culture. It needs to adopt a negotiating stance that leverages the competitiveness in areas beyond the digital sector.
Professor Ahn Jung-sang from Chung-Ang University’s Graduate School of Communication and a vice chair of the Democratic Party’s Special Committee on Information and Communication emphasized that it must find a compromise with the U.S. on digital policies through strategic give-and-take. The government needs to establish clear guidelines that prioritize national interests.
