A new model shows devastating economic losses for US companies if South Korea adopts controversial legislation that would regulate transactions with some American firms. The Online Platform Fairness Act, which is spearheaded by the Korea Fair Trade Commission (KFTC), has gained steam in the Asian nation and is backed by far-left South Korean President Lee Jae-myung.
Economic Losses
A Competere Foundation model estimates a $525 billion loss in economic activity in US states over the next decade, including a $123 billion loss for California, a $48.7 billion loss for Texas, a $33.9 billion loss for New York, and a $27.4 billion loss for Washington.
Rep. Darrell Issa, R-Calif., told Fox News Digital that South Korea’s recent actions restricting American companies are troubling. Issa also expressed concern that South Korea’s current trade commission resembles the worst of Lina Khan’s FTC, not the free market tradition that has helped to bring Seoul and Washington together.
US Concerns
Former Utah Republican Rep. Chris Stewart warned of South Korea’s posture to increase regulatory burdens for US companies, telling Fox News Digital it could be devastating for more than just tech companies. Stewart noted that the cost would affect more than just Silicon Valley, tying the economic losses to a Chinese win – since Beijing would likely take up lost market share in South Korea if American companies were to reduce investment.
Original reporting: Fox News (HLL/CB) — read the source article.
