Regulation of digital trade is becoming one of the drivers of fragmentation in the world economy. In the absence of a common international standard on digital trade governance, countries take different approaches to regulation. Each country adds a layer to the existing digital trade regimes, resulting in what has been famously described as the “spaghetti bowl” effect. This article investigates Korea’s unique position in the evolving global regulation of digital trade and the added value the country brings to the process of co-creating a common reference for international best practices. The article contributes to the ongoing debate about the dichotomy of global and regional layers of global digital trade regulation by looking at the existing regulation by the World Trade Organization (WTO) and regional agreements. Research indicates that, for many countries, including Korea, digital trade agreements, or free trade agreements (FTAs) with e-commerce chapters, serve as platforms not only to experiment with possible regulations but also to increase their negotiating and normative power in co-creating global standards for digital trade regulation. This article presents evidence that Korea is a proponent of the WTO’s role in providing a common reference for the regulatory standards on digital trade. When it comes to digital trade agreements, Korea is actively engaging with its partners to update existing trade rules. However, its commitments under various agreements show a great variation and heavy use of the national security carve-out, indicating a desire to leave a comfortable space for future policy actions. Also, Korea’s early engagement with strong economic partners on digital trade regulation speaks in favour of its desire to acquire more internationally acknowledged normative power. By assuming a high standard of digital trade regulation, the country can negotiate better deals with other partners—deals that will contribute to its national interests.

This article was submitted on 28.02.2024