U.S. Swiftly Dismantles Finance, AI Regulations While Korea's Pro-Business Stance Remains Rhetoric

The United States is mobilizing all policy tools, including financial deregulation and the elimination of artificial intelligence regulations, to boost economic growth. U.S. Treasury Secretary Scott Bessent announced on January 12 that he would shift the regulatory stance of the Financial Stability Oversight Council (FSOC), the body overseeing financial regulation, toward easing restrictions.

"Some elements of U.S. financial regulation are negatively impacting economic growth," Bessent said. "We will ease regulatory measures that constrain growth." He added that "the financial system must provide the necessary resources for real economic recovery."

The easing of FSOC's regulatory stance—FSOC being America's macroprudential "control tower"—represents a decisive move to foster advanced industries through finance. Established under the Dodd-Frank Act following the 2008 global financial crisis, FSOC has focused on regulating financial companies and investment banks. However, the U.S. has now chosen bold deregulation to enable organic integration of industrial and financial capital in sectors requiring tens of trillions of won in large-scale investment, such as semiconductors, AI, shipbuilding, nuclear power, and power grids.

President Donald Trump's executive order the same day eliminating individual AI regulations across 50 states and establishing unified federal standards also carries significant implications for Korea. "There will be only one winner in the AI sector," Trump said in the executive order. "That's impossible if you have to get different approvals from each state."

Compared to America's bold and swift financial deregulation, Korea's easing of restrictions on the separation of banking and commerce is too narrow in scope and too slow in pace. President Lee Jae-myung said at the "AI Era Semiconductor Industry Development Strategy Briefing" on January 10 that "within the scope that does not undermine the separation of banking and commerce, practically all measures for securing investment funds seem to be in place." Yet legislation to ease equity restrictions on great-grandchild subsidiaries, limited to the semiconductor sector, continues to be endlessly delayed.

The ruling party's forced passage of the corporate tax increase bill, which runs counter to business expectations, is also a major problem. The ruling party and government have held policy meetings claiming to "listen to business opinions," only to ignore corporate demands and push through regulatory legislation. This was the case with the Yellow Envelope Act, the Serious Accidents Punishment Act, and the first and second Commercial Act amendments—and they say they will process the third Commercial Act amendment within the year.

Pro-business slogans without action are hollow. It is doubtful whether Korea can achieve its goals of becoming a "top-2 semiconductor power" and "top-3 AI power" with pro-business policies that remain mere words.