“The Big Money Show” previews President Donald Trump’s meeting with South Korean President Lee Jae-myung as they discuss a potential deal and analyze market reaction.
FIRST ON FOX: A new study says South Korea’s tough competition rules targeting U.S. technology companies could cost the two countries nearly $1 trillion in lost economic growth over 10 years.
A study by the Competere Foundation, a nonprofit that educates policymakers about nontariff barriers affecting global GDP, estimates that U.S. companies could lose $525 billion, while South Korean small businesses stand to lose about $469 billion.
Trump urged to attack South Korea over tech regulations that target us and spare China
The report highlights aggressive enforcement by the Korea Fair Trade Commission (KFTC), saying it unfairly limits U.S. technology companies and discourages foreign investment.
The report warns that South Korean small businesses stand to lose about $469 billion over the next ten years because of Seoul’s competition rules. (Anthony Wallace/AFP/Getty Images)
“Ironically, while Korean authorities work to prevent U.S. companies like Apple, Coupang, Google and Microsoft from operating freely, our research shows that Korea itself will lose an estimated $469 billion over ten years, including significant damage to the country’s small businesses,” Shanker Singham, president of the Competere Foundation, said in a statement to FOX Business.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 262.24 | +9.95 |
+3.94% |
| CPNG | COUPANG INC. | 31.69 | +0.48 |
+1.54% |
| ALPHABET INC. | 256.55 | +3.25 |
+1.28% |
|
| MSFT | MICROSOFT CORP. | 516.79 | +3.21 |
+0.63% |
He warned that the Korean approach could have broader diplomatic and trade implications, emphasizing the need for stronger U.S. engagement.
NEW SOUTH KOREA LAW PROTECT CHINA, TARGET US TECHNOLOGY AND RISK TRADE CLASH
“Not only are Korea’s actions hurting the U.S. economy, they are also escalating trade tensions. If the Trump administration resolves this issue, it will give President Donald Trump a once-in-a-lifetime chance to bring a huge economic victory to American families without spending a dime,” Singham added.
The Trump administration is currently negotiating a trade deal with South Korea. (Chip Somodevilla/Getty Images)
The report also warns that Korean small businesses will be hardest hit by reduced foreign investment. He urges the two governments, currently negotiating a trade deal, to prioritize regulatory reform to safeguard growth and strengthen economic ties between the United States and South Korea.
Trump issues ultimatum, threatening tariffs on digital taxes and regulations
Henry Haggard, former minister-counsellor for political affairs at the US embassy in Seoul, acknowledges that Korea’s regulatory approach risks backfiring.
“These actions by Korean officials block the ability of American companies to operate freely and deter them from investing in South Korea,” Haggard told FOX Business. “An unwelcoming investment environment could make trade negotiations more complex and potentially more confrontational.”
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He warned that some U.S. companies could scale back their operations in South Korea, suspend future investments or even exit the market altogether.
Trump says Xi Jinping, the Chinese president, knows where he stands on tariffs. (Ton Molina/Bloomberg/Getty Images)
“This leaves an opportunity for Chinese companies to gain a competitive advantage, less deterred by inconsistent enforcement of rules and regulations. This is bad for America and bad for national security,” Haggard added.
The U.S. Embassy in South Korea did not immediately respond to FOX Business’ request for comment.
