Analysis: South Korea's proposed Foreign Agents Registration Act

The introduction of a Foreign Agents Registration Act raises concerns about South Korea's operational and regulatory landscape

Event or Trend: The proposal for a South Korean version of the U.S. Foreign Agents Registration Act (FARA) has sparked significant debate. The legislative move aims to monitor foreign influence by requiring registration of entities acting on behalf of foreign principals, similar to U.S. practices.

Significance: The introduction of a Foreign Agents Registration Act in South Korea has raised concerns about the operational and regulatory landscape for businesses.

For foreign companies and multinational corporations, such legislation introduces new compliance burdens, potentially affecting business strategies, investments, and lobbying activities. Diplomatic friction may also arise as the law risks being perceived as overreaching, possibly impacting foreign relations and South Korea’s reputation as a business-friendly environment.

Analysis: Sponsors of the Foreign Agents Registration Act proposal justify the legislation by referencing two high-profile cases: the indictment of former CIA anal…