Republic of Korea: Entry into force with grace period of Korea-Singapore Digital Partnership Agreement including provisions to enable cross-border data flows

On 14 January 2023, the Digital Partnership Agreement (KSDPA) signed by the Government of Korea and Singapore on 21 November 2022, enters into force with a grace period. The Agreement seeks to deepen cooperation in the digital economy between both countries by establishing digital trade rules that promote interoperability between digital systems. The Agreement consists of several modules that cover electronic payments, paperless trading, cross-border data flows, data localisation prohibition, open government data, artificial intelligence, cryptography and source code protection, online consumer protections, small and medium enterprises cooperation, and digital identities. Regarding cross-border data flows, the Agreement allows businesses operating in Singapore and Korea to be able to transfer information across borders, including those generated or held by financial institutions, as long as regulations are met and adequate personal data protection safeguards are provided. The consultation on the amendments to the cross-border trade in services chapter will start one year after the entry into force.