From Fast Follower to Innovation Leader: Restructuring South Korea’s Technology Regulation

South Korea’s restrictive regulatory framework is stifling its potential to be a global leader in innovation. While other nations embrace emerging technologies like AI, cryptocurrency, and mobility tech, Korea’s outdated “positive regulation” model, combined with informal “shadow regulations”, is driving companies and investment elsewhere. The consequences are already visible: once-promising tech platforms have lost billions in value, and the country ranks near the bottom in start-up opportunity perception. Without bold reforms, Korea risks falling behind in the next wave of digital transformation, while a regulatory overhaul could add $1 trillion to its GDP by 2040.