South Korea

Joongang Ilbo | English | News | Jan. 13, 2026 | UndeterminedBizdev-Partnering

The Science Ministry of Korea and Nvidia have agreed on the importance of quickly establishing a research and development center in Korea. This consensus was reached during a meeting between Second Vice Science Minister Ryu Je-myung and Nvidia's Executive Vice President Jay Puri in California on January 9, 2026.

Both parties also discussed strategies to collaboratively support and develop artificial intelligence startups. The Ministry of Science and ICT emphasized the urgency of setting up Nvidia's R&D facility to boost innovation and growth in Korea's AI sector.

K게임, '세제 사다리' 필요하다... 규제 강화 속 진흥책 요원

ET News | Local Language | News | Jan. 13, 2026 | Regulation

The K-game industry is facing significant challenges due to a sharp decline in domestic game usage rates, which dropped from 74.4% in 2022 to 50.2% in 2025, shaking the industry's foundations. Small and medium-sized developers are particularly affected by increased regulatory pressures, high interest rates, rising production costs, and dwindling user numbers. Industry voices emphasize the urgent need for a "production cost tax credit" to create a "tax ladder" that encourages creative development and supports smaller companies struggling to compete.

Recently, the government and National Assembly have strengthened regulations, including tougher penalties for violations related to probability-based items in games, reflecting a policy focus on user protection. However, the industry contends that these regulatory efforts lack accompanying promotional incentives, which could lead to further industry contraction. Attempts to introduce game production cost tax credits, modeled similarly to tax benefits in the video content sector, are currently stalled in the National Assembly due to concerns from financial authorities about reduced tax revenue and overlap with existing R&D tax credits.

The existing R&D tax credit system benefits mainly large game companies, as small developers often cannot meet stringent requirements involving dedicated research facilities and personnel. Additionally, the R&D framework is criticized for inadequately addressing the ongoing live service nature of games. Experts highlight that implementing a production cost tax credit could generate approximately 1.45 trillion won in added value and create over 15,000 jobs in five years, potentially expanding national tax revenues in the long term by fostering a reinvestment cycle in the industry.

Legal and industry specialists stress the necessity of establishing a virtuous-cycle ecosystem to nurture the global competitiveness of K-games. Without substantive promotion measures to counterbalance increasing regulatory risks, the growth and innovation capacity of Korea's game sector remain under threat.

Chosun Ilbo | English | News | Jan. 13, 2026 | Regulation

South Korea's Trade Minister Yeo Han-koo addressed U.S. concerns about South Korea's regulatory actions on online platforms during his visit near Washington, DC. He emphasized the need to clearly explain Seoul's policy and legislative intentions amid misunderstandings voiced by U.S. political circles regarding South Korea’s treatment of companies like Coupang and revisions to the Information and Communications Network Act.

Tensions have escalated as U.S. lawmakers, particularly Republican Representative Darrell Issa, have sharply criticized South Korea’s measures, including restrictions on Google’s map data exports, comparing South Korea to countries with restrictive trade policies. Issa also condemned comments by the head of South Korea’s Fair Trade Commission on U.S. trade policies, reflecting heightened sensitivity toward regulations affecting major U.S. tech firms.

Yeo plans to conduct extensive outreach with members of the U.S. House and Senate and digital industry groups, including a meeting with Issa. He is also scheduled to meet U.S. Trade Representative Jamieson Greer amid concerns over delays in the Korea-U.S. Free Trade Agreement Joint Committee meeting, which was postponed due to U.S. dissatisfaction with South Korea’s so-called "digital barriers." The delay raises fears of potential trade conflicts if unresolved.

The ongoing investigation and indictment of Coupang Korea’s interim representative by the South Korean National Assembly has drawn attention from the U.S., given Coupang’s status as a U.S.-listed company. The U.S. Embassy in Seoul is monitoring these developments closely, with some U.S. officials perceiving the actions as discriminatory. Yeo rejected claims of discriminatory treatment, framing the issue as one centered on the response to a major information leak rather than trade or diplomatic hostility.