GOP Lawmaker Warns of South Korea's Closer Ties With China, Citing Risks to U.S. Security

A House Judiciary Committee report released July 1 alleges South Korea is imposing restrictive regulations on U.S. technology companies while favoring Chinese competitors, a move Rep. Darrell Issa (R-Calif.) says poses a national security risk to the United States.

The report claims South Korea's actions could cost the U.S. economy over $500 billion and impact American households by $3,800 over the next decade, as the country shifts its economic and strategic alignment toward China.

South Korea and the U.S. have been military allies since 1953, but recent developments have raised concerns in Washington about Seoul's growing economic partnership with Beijing and its implications for U.S. defense planning and technology transfers.

Allegations of Discrimination Against U.S. Firms

According to the House Judiciary Committee report, the Korea Fair Trade Commission has targeted major American companies—including Amazon, Meta, and Google—with what it calls a "whole-of-government assault," resulting in some firms losing more than 40% of their market capitalization in South Korea. The report alleges that South Korea uses "burdensome obligations, aggressive enforcement practices, and even the threat of criminal penalties" to hinder U.S. companies' ability to compete with Korean rivals.

The report further states that digital laws and regulations are being selectively enforced, with smaller firms and Chinese companies effectively exempted from the same requirements imposed on U.S. businesses.

Growing Economic Ties With China

Rep. Issa told the Daily Signal that South Korea is "deliberately promoting China and Chinese companies" over American firms, and described China as now being South Korea's largest trading partner. Issa attributed this shift to what he called "China-friendly, pro-communist leadership" in Seoul, arguing that the South Korean government is acting "hostile to the United States, a country that literally protected them from the Russians and the Chinese for the last 70 years."

"I don’t believe we can afford to transfer that part of our national defense to an ally that, quite frankly, is more aligned with China than it is with us."

— Rep. Darrell Issa, R-Calif.

Issa said the U.S. had planned to rely on South Korea to produce parts for Navy ships, including hulls and infrastructure, as part of efforts to match China's naval capabilities. He now considers that strategy "untenable" due to South Korea's perceived shift in alliances.

Calls for U.S. Policy Response

Issa urged Congress to take "tough measures" in response to South Korea's actions, including reassessing export controls and limiting technology transfers for military production. "Export controls have to weigh the balance of and the reliability of South Korea as an ally. Additionally, we very much have to limit the transfer of technology for production of military items," Issa told the Daily Signal.

The South Korean government and the Korea Fair Trade Commission have not publicly responded to the allegations or the House report. Supporters of South Korea's trade policies argue that regulatory actions are intended to ensure fair competition and consumer protection, not to target U.S. firms or favor Chinese interests.

The House Judiciary Committee report estimates that continued discrimination against U.S. companies could result in significant economic losses and affect American households for years to come.