We are living in a world where information is commonly gathered online and transferred across borders. With the global economy going digital, cross-border bandwidth has increased 45 times in the past decade. In terms of absolute quantity, it has reached 211.3 terabits per second (Tbps) in 2014, up from 4.7 Tbps in 2005. From economic aspects such as industrial innovation, market expansion and efficiency, there is much to benefit from the freer cross-border flow of data.

However, there lie diverse policy challenges amid such benefits. One of the most important policy issues is constructing an adequate personal data protection system. As data-driven innovation makes swift advancements, it is necessary to achieve both the policy goals of protecting personal information and promoting its usage. Second, We need to consider issues of cross-border information flows from strategic perspectives, considering the present industial competitiveness and future goals. Third, regional cooperation is required to build a larger market with regulatory harmonization. EUs Digital Single Market Strategy for Europe in 2015 is an foremost example.

The free flow of Information on the internet is now becoming a core source of innovation, and will bring about fundamental economic changes. The global economy must reform the regulatory environment in order to accelerate data and ICT-based innovation. Furthermore, we should give more thought to building a global economy that enjoys the fruits of digital innovation in a more balanced way, given its winner-takes-all tendency.