A new model shows devastating economic losses for U.S. companies if South Korea adopts controversial legislation that would regulate transactions with some American firms, and lawmakers warn that the country’s leadership is now «closely aligned with China.»

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. 

A Competere Foundation model estimates a $525 billion loss in economic activity in U.S. 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.

«South Korea is an American ally and an economic success story, which is why its recent and continuing actions restricting American companies — like its 20-year ban on Google Maps — are so troubling,» Rep. Darrell Issa, R-Calif., told Fox News Digital. «I remain concerned that its 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.»

OVER 50 HOUSE MEMBERS ACCUSE SOUTH KOREA’S NEW LEFT-WING GOVERNMENT OF ATTACKING US COMPANIES, FAVORING CHINA

Issa told Fox News Digital in April that South Korean leadership and the nature of the Democratic majority in the country is «closely aligned with China.» 

Yoon Suk-yeol, a conservative from the People Power Party, was elected president of South Korea in 2022 but was impeached in December 2024. His decision to impose martial law was a key factor in his ouster. 

Lee narrowly lost to Yoon in the 2022 presidential election but won the presidency in 2025. The Democratic Party in South Korea already holds a substantial majority in the National Assembly. The country is now operating at a full Democratic majority.

SOUTH KOREA FLIPS LEFT IN PRESIDENTIAL RACE; LEE SECURES VICTORY AFTER CONSERVATIVE OPPONENT CONCEDES

Trump is expected to press Xi on China’s economic and strategic support for both Iran and Russia, including oil revenue, dual-use components and potential weapons transfers, according to senior administration officials. (Andrew Caballero-Reynolds/AFP via Getty Images)

The Democratic Party is the main liberal force party in the country and favors progressive domestic policies as opposed to the conservative beliefs that have previously reduced political engagement with North Korea and promoted relations with the U.S.

The proposed bill, which remains pending in South Korea’s assembly, would broaden the power of the KFTC, the same agency members of Congress are criticizing for unfairly treating U.S. companies. 

Shanker Singham, international trade and competition economist and CEO of the Competere Foundation, said, «Korea is already an increasingly unfriendly place for U.S. companies to do business,» adding the «looming regulations will make that environment even worse.»

SOUTH KOREA’S NEW LEFTIST PRESIDENT PULLS A FAST ONE ON DONALD TRUMP

Supporters of former South Korean President Yoon Suk Yeol stage a rally outside the Seoul High Court in Seoul on April 29, 2026. (Ahn Young-joon/AP)

Former Utah Republican Rep. Chris Stewart also warned of South Korea’s posture to increase regulatory burdens for U.S. companies, telling Fox News Digital it could be devastating for more than just tech companies. 

«South Korea’s campaign against American companies isn’t just a trade issue. It’s a strategic mistake that benefits China,» Stewart said. «Every time Korean regulators make it harder for U.S. innovators like Coupang, Google or Meta to compete, they create more room for Chinese companies to gain market share and influence in one of the world’s most important digital economies.» 

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.

BEYOND MISPERCEPTION: A RENEWED KOREAN DEMOCRACY AND A RENEWED ALLIANCE

In early June, foreign policy experts Nicholas Eberstadt and Lawrence Peck published an editorial in the Wall Street Journal titled, «South Korea Takes a Hard Left Turn Against America,» which alleged that South Korean officials «stormed» U.S. air force bases as part of a domestic investigation. 

Logos of internet company Coupang and security company SentinelOne are displayed on their shared headquarters in Mountain View, Calif., on Oct. 28, 2018. (Smith Collection/Gado/Sipa USA)

The investigation focused on Coupang, a U.S. tech company similar to Amazon. In early June, South Korea fined Coupang roughly $410 million for a data breach, the largest fine the country has ever issued for a similar charge. 

South Korea’s science ministry said a Chinese national and former Coupang employee stole data and customer information from the American company, including information about South Korean citizens.

WILL SOUTH KOREA EXPEL THE US?

«The investigation into the case of Coupang is proportionate to the nature of the data breach and consistent with those applied to Korean companies in comparable cases,» South Korean embassy spokesperson Minseong Seo told Semafor.

In April, 50 members of the House of Representatives expressed their concern in a letter to Republic of Korea (ROK) Ambassador to the United States Kyung-wha Kang over what they deemed to be «discriminatory» business practices.

Supporters of former South Korean President Yoon Suk Yeol stage a rally outside the Seoul High Court in Seoul, South Korea, on April 29, 2026. (Ahn Young-joon/AP)

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The letter referenced a previous report from Competere that also addressed economic losses in the U.S. as a result of tighter regulations from South Korea. 

«Many American tech companies have faced a range of regulatory actions that seek to punish them while shielding Korean domestic competition,» the letter reads. «Recent research by think tank Competere shows such regulatory actions by the ROK government will cost $1 trillion in combined economic damage to the U.S. and Korean economies over the next 10 years, with the U.S. economy losing $525 billion and American households losing nearly $4,000 each.»

«La vida por Evo»

El ex presidente boliviano está atrincherado su feudo cocalero y desafía al gobierno de Rodrigo Paz. Foto: EFE

«Somos discriminados»

American search-and-rescue teams pulled an infant alive from beneath the rubble in Venezuela days after the country’s devastating earthquakes, the U.S. Department of State said Saturday.

The State Department shared video on social media showing U.S. personnel pulling the infant from the rubble as rescue crews continued searching for survivors more than 72 hours after two powerful earthquakes struck the South American country.

The rescue came as emergency crews raced against time to locate survivors before the critical rescue window closes.

«Against impossible odds, hope endures,» the State Department posted on X.

TRUMP SAYS VENEZUELA EARTHQUAKES LEFT ‘DEVASTATING NUMBER OF DEATHS’ AS US READIES AID

«American search and rescue teams rescued an infant from beneath the rubble following the earthquake in Venezuela,» the post continued. «Every life saved is a victory.»

The White House also shared the video, calling it «America at its best.»

«Thank you to the American search and rescue teams providing assistance in Venezuela,» the White House wrote.

PLAYERS, FANS FLEE STADIUM AS POWERFUL EARTHQUAKES STRIKE DURING VENEZUELA BASEBALL GAME

Rescue workers search through the rubble three days after earthquakes struck Catia la Mar, Venezuela. (AP Photo/Fernando Vergara)

Round-the-clock rescue efforts have continued since magnitude 7.2 and 7.5 earthquakes struck Venezuela’s northern coast Wednesday.

As of Saturday evening, officials said the death toll from the twin earthquakes had reached 1,430.

Earlier Saturday, officials reported that 243 people had been rescued.

FORMER METS PITCHER NARROWLY ESCAPES DEATH IN VENEZUELA EARTHQUAKES THANKS TO ELEVATOR MALFUNCTION

Rescue personnel with a rescue dog assist in rescue efforts after earthquakes hit the country, in La Guaira, Venezuela, Saturday. (REUTERS/Leonardo Fernandez Viloria)

According to The Associated Press, more than 68,000 people remain missing across the country.

Aid groups consider the first 48 to 72 hours after a disaster to be the most critical window for finding survivors, though access to food and water can extend that period.

Venezuelan officials said 17 flights carrying more than 1,600 rescue personnel had arrived Saturday to assist with search-and-rescue efforts.

US RESCUE TEAMS TO DESCEND ON HARD-HIT CARIBBEAN AFTER CATASTROPHIC HURRICANE MELISSA’S IMPACT

Members of the County of Los Angeles Fire Department’s international urban search and rescue team (USA-2) prepare to leave for Venezuela, in Pacoima, Calif., on Thursday. (Blake Fagan/AFP via Getty Images)

Urban Search and Rescue (USAR) teams from Virginia, California and Florida were dispatched to Venezuela on Friday to help search collapsed buildings.

According to the State Department, the three USAR teams include 312 personnel and 18 canine teams, including firefighters, physicians, structural engineers and canine search specialists. The teams also deployed more than 200,000 pounds of specialized rescue equipment.

The Los Angeles County team includes 73 members equipped with concrete-breaking equipment and specialized listening devices used to detect survivors trapped beneath debris.

COLORADO AVALANCHE VICTIM RESCUED IN DRAMATIC VIDEO

Responders search for victims in a demolished building in Caracas, Venezuela, after a magnitude 7.2 earthquake and a 7.5 aftershock struck the region. (Jesus Vargas/Getty Images)

Rescuers have fanned out across La Guaira, where the worst destruction occurred, and parts of Caracas, where families and volunteers have spent days pulling survivors and victims from the rubble.

The United States has pledged $150 million in emergency assistance and support for international relief organizations responding to the disaster.

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Fox News Digital has reached out to the State Department for additional information on the rescue.

Fox News Digital’s James Cirrone, and The Associated Press and Reuters contributed to this report.