First digital trade deal between Singapore, South Korea comes into effect on Jan 14

THE Korea-Singapore Digital Partnership Agreement (KSDPA) comes into effect on Saturday (Jan 14).

The agreement, which marks the first digital trade deal between the two countries, was signed by South Korea’s Minister for Trade Dukgeun Ahn and Singapore’s Second Minister for Trade and Industry Tan See Leng on Nov 21, 2022.

The KSDPA is reflective of Singapore and South Korea’s commitment towards integrating both countries’ digital ecosystems to unlock new growth opportunities for businesses, said a joint-statement by Singapore’s Ministry of Trade and Industry, Ministry of Communications and Information, and Infocomm Media Development Authority on Friday.

Singapore and South Korea have also signed three memoranda of understanding (MOUs) to implement the Korea-Singapore Digital Economy Dialogue, facilitate the electronic exchange of data, and enhance cooperation in artificial intelligence (AI).

These MOUs are part of ongoing bilateral efforts for the KSDPA’s implementation.

The KSDPA is Singapore’s fourth digital economy agreement, and its first with an Asian nation. The pact will set rules and standards for digital trade and partnership between the two countries, deepening bilateral cooperation in data and information flow protection, end-to-end digital trade, and digital system protection.

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This will allow safe and secure cross-border electronic payments and paperless trading.

The KSDPA will enable data flows by allowing businesses operating in either country to access seamless and safe transfers of information, including for financial services.

It will also put in place disciplines against requirements for data localisation. The statement said this will allow businesses to choose where their data is stored and processed.

The agreement will also encourage innovation by making public government data accessible.

In promoting trust in digital systems, both countries will facilitate the adoption of AI governance and ethics frameworks that support the responsible use and protection of AI-based technologies.

They will also implement laws to protect online consumers against fraud. For small and medium-sized enterprises, the two countries will cooperate to promote their jobs and growth by encouraging collaborations with potential business partners.