‘The Large Cash Present’ previews President Donald Trump’s assembly with South Korean President Lee Jae-myung as they focus on a possible deal and analyze market response.
FIRST ON FOX: A brand new examine says South Korea’s strict competitors guidelines geared toward U.S. tech companies may price each international locations almost $1 trillion in misplaced financial progress over 10 years.
Analysis by the Competere Basis, a nonprofit that educates policymakers on non-tariff boundaries affecting world GDP, estimates that U.S. corporations may lose $525 billion, whereas South Korean small companies stand to lose about $469 billion.
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The report factors to aggressive enforcement by Korea’s Truthful Commerce Fee (KFTC), saying it unfairly limits U.S. tech companies and discourages overseas funding.
The report warns that South Korean small companies stand to lose about $469 billion over the following 10 years on account of Seoul’s competitors guidelines. (Anthony Wallace/AFP/Getty Pictures)
“Sarcastically, whereas Korean officers are working to stop U.S. corporations like Apple, Coupang, Google and Microsoft from working freely, our analysis reveals Korea itself will lose an estimated $469 billion over ten years, together with vital injury to the nation’s small companies,” mentioned Shanker Singham, president of the Competere Basis, in a press release to FOX Enterprise.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 262.24 | +9.95 | +3.94% |
| CPNG | COUPANG INC | 31.69 | +0.48 | +1.54% |
| GOOGL | ALPHABET INC. | 256.55 | +3.25 | +1.28% |
| MSFT | MICROSOFT CORP. | 516.79 | +3.21 | +0.63% |
He cautioned that Korea’s method may have broader diplomatic and commerce implications, underscoring the necessity for stronger U.S. engagement.
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“Not solely are Korea’s actions harming America’s economic system, however they’re additionally aggravating commerce tensions. If the Trump administration resolves this, it would give President Donald Trump a novel likelihood to ship an enormous financial win for American households with out spending a dime,” Singham added.
The Trump administration is at present negotiating a commerce settlement with South Korea. (Chip Somodevilla/Getty Pictures)
The report additionally cautions that smaller Korean companies will bear the brunt of diminished overseas funding. It urges each governments, at present negotiating a commerce deal, to prioritize regulatory reform to safeguard progress and strengthen U.S.–South Korea financial ties.
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Henry Haggard, former minister counselor for political affairs on the U.S. Embassy in Seoul, agreed that Korea’s regulatory method dangers backfiring.
“These actions by Korean officers are stalling the power of U.S. corporations to function freely and disincentivizing them from investing in South Korea,” Haggard informed FOX Enterprise. “An unwelcoming funding setting may make the commerce negotiations extra advanced and probably extra confrontational.”
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He warned that some U.S. companies could cut back operations in South Korea, halt future investments or exit the market altogether.
Trump says Xi Jinping, China’s president, is aware of the place he stands in the case of tariffs. (Ton Molina/Bloomberg/Getty Pictures)
“That is leaving a gap for Chinese language corporations to realize a aggressive benefit which might be much less deterred by irregular enforcement of guidelines and rules. That’s unhealthy for America and unhealthy for nationwide safety,” Haggard added.
The U.S. Embassy in South Korea didn’t instantly reply to FOX Enterprise’ request for remark.