Washington: A senior U.S. official on Tuesday criticized South Korea's requirements for physical isolation of government servers and data localization policies, describing them as "barriers" to the advancement of artificial intelligence (AI) in the country. The official called for a shift toward more "modernized" digital regulations. According to Yonhap News Agency, Russ Headlee, the senior bureau official for cyberspace and digital policy at the State Department, made these remarks during a forum in Washington. He warned against "appeals to digital sovereignty" that could potentially "discriminate against American companies." Headlee highlighted that the rapid development of AI in South Korea is being hindered by these regulations, which include the physical isolation of government servers and stringent data localization policies. He argued that these measures pose risks to South Korea itself. Speaking at the forum hosted by the National Bureau of Asian Research, he suggested that digital sovereignty shoul d be about verifiable control rather than physical possession. He advocated for modernized regulations that allow logical server separation and cross-border data flows to enable South Korea to better utilize AI, especially in the public sector for cyber defense. The forum focused on South Korea's cyber regulatory landscape in the AI era, a subject of ongoing discussions between Seoul and Washington as they seek to deepen cooperation in the fast-evolving technology sector. Headlee expressed that many regulatory policies aimed at achieving "AI sovereignty" or "digital sovereignty" do not necessarily enhance national security. He outlined several policy measures that South Korea has considered or implemented, which he believes may not serve their intended purpose. He mentioned that some policies include restrictive data localization requirements, restrictions on foreign cloud providers, network usage fees for content platforms, and procurement rules that limit technological choices for the government. In his o pinion, these measures do not strengthen national or economic security, nor do they enhance government oversight or domestic economies. Instead, they lead to increased costs, reduced competition, and, in many cases, heightened security risks. The official cautioned against digital sovereignty appeals designed to exclude or discriminate against American companies. He also implicitly encouraged South Korea to partner with American tech firms, suggesting that "real AI sovereignty" involves selecting partners who empower rather than create dependencies and pursuing sovereign AI capabilities. Headlee concluded by emphasizing that American companies, including those in AI, are capable of building large-scale independent infrastructure with secure supply chains, asserting that no one does it better.