ITIF-从快速追随者到创新领导者：重构韩国技术监管（英）

itif.org From Fast Follower to Innovation Leader: Restructuring South Korea’s Technology Regulation SEJIN KIM | MARCH 2025 South Korea stands at a crossroads as its restrictive “positive regulation” and “shadow regulations” stifle innovation in AI, crypto, and mobility tech, allowing China to race ahead. Korea must modernize this framework or risk losing its position as a global innovation leader. KEY TAKEAWAYS  Korea’s dual-constraint regulatory framework—a combination of “positive regulation” and informal “shadow regulations”—was instrumental during the manufacturing era, but it now threatens Korea’s potential to emerge as a global innovation leader.  While U.S. and Chinese tech firms rapidly scale new services, Korea’s system freezes innovation until regulatory frameworks catch up. It is particularly damaging in sectors where first-mover advantages and network effects determine market leadership.  This pattern killed TADA’s mobility service, is forcing crypto firms overseas, and now threatens AI development.  Despite leading R&D investment globally as a share of GDP, Korea’s innovation ecosystem shows alarming signs of deterioration. Major platforms have hemorrhaged $50 billion in value, and Korea ranks second to last in start-up opportunity perception.  Korea must shift from its restrictive framework to a “negative regulation” system that allows innovation by default. An administration-agnostic “control tower” with cross-agency authority can coordinate tech policy and prevent regulatory fragmentation.  McKinsey projects regulatory modernization would boost Korean GDP by $1 trillion by 2040. Whereas, without reform, the OECD warns of Korea’s growth potential would fall to last place among members by 2031. INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MARCH 2025 PAGE 2 CONTENTS Key Takeaways ................................................................................................................. 1 Introduction ..................................................................................................................... 2 South Korea’s Crypto Exodus: How Regulatory Barriers Are Driving Innovation Abroad ............... 4 Regulatory Barriers in Action: South Korea’s Ride-Sharing Dilemma ....................................... 5 AI Industry at a Crossroads ................................................................................................ 6 The Window for Action Is Closing ........................................................................................ 7 The South Korean Economic Miracle Needs a Second Act ..................................................... 8 Endnotes ....................................................................................................................... 10 INTRODUCTION South Korea faces a critical inflection point regarding its technology economy. The impeachment crisis surrounding President Yoon has shaken investor confidence, while U.S. President Donald Trump