‘Massive Shift’ In US-Korea Relations After Trump Gets Seoul To Stop Targeting Tech

Last month we noted that South Korea has been effectively running a racket to extract money from Big Tech through the Korea Fair Trade Commission (KFTC) – which, taking a note from the EU, has repeatedly targeted US firms with massive fines over various business practices. For years, the targeted industries have argued that Korean “network usage fees,” mandatory billing rules, app-store regulations, digital-platform laws, and privacy rulings were crafted to disadvantage foreign competitors while protecting national champions.

The longstanding U.S. – Korea alliance has operated within a familiar structure: Washington provided unconditional military protection, while Seoul pursued autonomous industrial and regulatory policies – occasionally at the expense of U.S. firms. The KFTC in particular developed a reputation among American technology, pharmaceutical, and automotive companies as an aggressive, often unpredictable enforcer whose investigations and fines disproportionately targeted foreign market leaders. In sectors ranging from app stores to semiconductors, U.S. firms routinely complained of a regulatory process that lacked transparency, due-process standards, and basic recognition of attorney-client privilege.

In 2021, they fined Google $177 over alleged anti-competitive practices in Android licensing. In 2023,  Apple faced a $22 million fine for keeping developers in the Apple payment ecosystem. In 2024, the KFTC launched probes into Amazon and Google over alleged preferential treatment in online advertising and search results, which they said could disadvantage Korean firms. 

They’ve also targeted Qualcomm, Coupang, Meta, Tesla and other US firms, leaving many wondering whether Korea’s antitrust apparatus was deploying economic nationalism under the guise of competition enforcement. Investigations were often launched under political pressure, imposed fines were regularly among the highest in the world, and procedural protections were thin compared to OECD norms.

Not Anymore…

During President Donald Trump’s October visit to the Republic of Korea, things were quickly straightened out. In a Nov. 13 press release, the White House writes:

“The United States and the ROK commit to ensure that U.S. companies are not discriminated against and do not face unnecessary barriers in laws and policies concerning digital services, including network usage fees and online platform regulations.”

So – Korea will need to keep their attack dog on a leash. To that end: 

“The ROK commits to provide additional procedural fairness provisions in competition proceedings, including the recognition of attorney-client privilege.”

This further neuters the KFTC, an institution that historically did not offer the evidentiary protections common in U.S. or EU jurisdictions. American companies have long complained that Korean antitrust proceedings allowed investigators access to internal legal communications – a structural disadvantage that no domestic firm in the United States or Europe would be forced to accept. 

As a member of the Trade Subcommittee, ensuring U.S. companies are treated fairly when operating abroad is crucial. That’s why I introduced bipartisan legislation addressing the Republic of Korea’s harmful digital trade barriers earlier this year.

I’m grateful to President…

— Rep. Carol Miller (@RepCarolMiller) November 18, 2025

Beyond the KFTC, Seoul’s commitments under the new Korea Strategic Trade and Investment framework seem like a great deal for America:

• $150 billion in U.S.-approved investments in shipbuilding

• $200 billion more under a coming MOU

• A $36 billion Boeing aircraft purchase

• $25 billion in U.S. defense acquisitions

• $33 billion in support for U.S. Forces Korea

While the US is no longer separating defense and economics – it’s explicitly linking security cooperation to regulatory reciprocity, and makes clear that a strong alliance requires a fair economic relationship.

Carrot and Stick

Politico reports that if Korea walks away from the agreement, they could launch a ‘301 probe’ 

According to three people close to the discussions who were granted anonymity to disclose private conversations, U.S. Trade Representative Jamieson Greer and other administration officials have repeatedly warned they could launch a 301 probe if Seoul walks away from that particular part of the agreement.

Greer most recently issued that warning during discussions leading up to last month’s summit between Trump and South Korean President Lee Jae-myung, as South Korean negotiators hedged on proposals the U.S. believes would expose tech behemoths like Google, Apple and Meta to heavy fines. He also said something similar at a September meeting with South Korean Trade Minister Yeo Han-koo, the people said.

The pressure campaign is part of the administration’s wider effort to push back on foreign regulations aimed at reining in the power of large digital platforms — a model pioneered by the European Union and its Digital Markets Act. Last week, the Trump administration unveiled trade agreements with Argentina, Guatemala, El Salvador and Ecuador that include requirements that those countries reject digital services taxes. 

That said, “Administration officials and U.S. tech industry allies are expressing confidence that Lee’s government won’t renege on that agreement.”

“After all the hard work that went into last week’s trade deal, it’s unimaginable that Korean officials would let the KFTC move forward with legislation or regulatory actions that would blow everything up and inevitably lead back to higher tariffs and escalating tensions,” one corporate lobbyist close to the White House told the outlet. 

A White House official told Politico that the possibility of a Section 301 “came up” during the talks, but that the US was not considering a “heavy-handed approach” at this time.

“The Koreans understood that tariffs are … a stick we carry,” the official added. 

Meanwhile, after years of Washington blocking Seoul’s ambitions for nuclear-powered attack subs, Trump gave them the green light.

According to Trump’s first National Security Advisor, Ambassador Robert O’Brien, “The US-ROK trade agreement signals a massive shift in how Korean officials are now expected to treat US firms. It officially recognizes the need to address a history of aggressive, discriminatory policies against American tech companies—including raids & unfounded criminal prosecutions. This deal should effectively kill any new legislation in Korea targeting online platforms, consistent with explicit warnings from President @realDonaldTrump.”

The US-ROK trade agreement signals a massive shift in how Korean officials are now expected to treat US firms. It officially recognizes the need to address a history of aggressive, discriminatory policies against American tech companies—including raids & unfounded criminal…

— Robert C. O’Brien (@robertcobrien) November 17, 2025

There are still issues to be hammered out with the sub deal; where they’ll be made and how to secure fuel for them considering Washington’s longstanding stance on not allowing Seoul to enrich uranium or reprocess spent nuclear fuel (their 26 nuclear reactors are all powered by imported fuel). Seoul, however, wants to enrich uranium themselves to build its own fuel supply chain and bolster its energy security. 

Whatever happens with that, it’s clear that Seoul is aligning its industrial future more tightly with the United States than at any point in modern history.

Korea has been officially put on notice. Treat American companies poorly, threaten our workers, raid our firms’ offices, and President Trump will push back.

It’s insane we’ve tolerated this kind of behavior from an ally, but even greater that the new trade deal KlLLS any… pic.twitter.com/7LnZCAthj0

— Gunther Eagleman™ (@GuntherEagleman) November 16, 2025