Key Points of the EU's Three Major Digital Regulations That Korean Software Companies Need to Know

Tue, 12 Nov 2024 00:00:00 +0000

Introduction

Three major pieces of legislation the European Union (EU) has recently introduced carry very significant implications for Korean companies. The Product Liability Directive (PLD), the Cyber Resilience Act (CRA), and the AI Act present a comprehensive regulatory framework governing the development, deployment, and use of software and AI systems.

These pieces of legislation matter to Korean companies for the following reasons:

Access to the EU market: The EU is one of the largest single markets in the world, and many Korean companies aim to enter it. Failure to comply with these laws can restrict access to the EU market.
Setting a global standard: EU regulation tends to become a de facto global standard. This is the so-called ‘Brussels effect’, and other countries are likely to introduce similar regulations.
Expanded corporate liability: These laws significantly expand the scope of corporate liability. In particular, the strict liability principle under the PLD could pose a new challenge for Korean companies.

Important perspectives for Korean companies to keep in mind when approaching these laws include the following:

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Key Points of the EU's Three Major Digital Regulations That Korean Software Companies Need to Know

Introduction