AMCHAM report highlights regulatory hurdles facing U.S. firms in Korea

By Lee Gyu-lee, The Korea Times - The American Chamber of Commerce in Korea (AMCHAM) released on Tuesday its annual 2026 Business Environment Insight Report outlining key regulatory challenges and policy recommendations aimed at strengthening Korea’s competitiveness as a regional headquarters and innovation hub for U.S. companies.

In its report, AMCHAM identified key regulatory challenges facing U.S. companies in Korea, including issues that may function as nontariff barriers, AMCHAM Chairman and CEO James Kim said.

The report said complex regulatory structure, policy inconsistency and misalignment with global standards continue to burden business activity. Overlapping regulations, frequent policy changes and limited predictability were also cited as major sources of uncertainty in investment and operations.

These challenges, the report pointed out, are becoming more critical in emerging sectors such as artificial intelligence and digital infrastructure, where policy clarity, cross-border data mobility and reliable access to energy and infrastructure are seen as essential to innovation and large-scale investment.

The report comes amid intensifying global competition across advanced industries, supply chains and artificial intelligence, emphasizing that regulatory transparency, predictability and alignment with global standards are increasingly decisive in attracting investment and supporting sustainable growth.

While Korea remains a stable and highly capable market, Kim said it must enhance regulatory predictability and global alignment to sustain competitiveness. He noted an earlier discussion with President Lee Jae Myung, where they talked about the goal of increasing the number of regional headquarters in Korea — from about 100 currently to 1,000 — during his term.

Kim said AMCHAM stands ready to work closely with the Korean government, including the newly established Regulatory Rationalization Committee, to address unnecessary regulatory gaps and support a more transparent, predictable and globally aligned business environment.

The 2026 report covers 11 major industries and 75 policy issues, up from 66 issues identified last year. The sectors include aerospace and defense, agriculture, automobiles, chemicals, the digital economy, energy and environment, financial services, labor, medical devices, pharmaceuticals and taxation.

Financial services, automobiles and chemicals accounted for the largest number of issues, followed by pharmaceuticals and the digital economy, indicating where regulatory challenges are most concentrated. The report also builds on findings from the Office of the United States Trade Representative and the U.S.-Korea Joint Fact Sheet, highlighting the need to address nontariff barriers and improve regulatory alignment.

The report also calls for greater labor market flexibility, stronger legal and regulatory predictability and financial market reforms to support global capital inflows and reinforce Korea’s position in the regional and global economy.

AMCHAM said it will continue engaging government stakeholders and industry leaders to advance policy dialogue and support implementation of the recommendations.

Source: https://www.koreatimes.co.kr/business/companies/20260429/amcham-report-highlights-regulatory-hurdles-facing-us-firms-in-korea?utm_source=legacy_url&utm_medium=redirect&utm_campaign=article_legacy_id