When Consumers Say no: Direct Purchase Experience and Opposition to Cross‐Border E‐Commerce Regulation in South Korea

ABSTRACT Governments often struggle to regulate rapidly evolving digital markets. This study examines South Korea's 2024 cross‐border e‐commerce regulatory initiative, substantially revised within days amid consumer opposition, and asks how consumers' direct purchase experience relates to that opposition. Using 1500 survey responses from South Korean adults aged 20–59, collected through the OpenSurvey panel, we employ Probit models and propensity score matching as primary estimators, complemented by an instrumental‐variable check. In the Probit and matching estimates, direct purchase experience is associated with approximately 9–11 percentage points higher regulatory opposition, an association that is robust across specifications; regulatory awareness is also positively associated with opposition. Subgroup patterns vary by income and age, although formal interaction tests are not significant. Interpreted through public‐interest and private‐interest (regulatory‐capture) theories of regulation, these patterns are consistent with experienced consumers evaluating regulatory appropriateness in light of accumulated platform knowledge rather than accepting paternalistic protection. The findings point toward consumer‐centric regulatory design that incorporates consumer experience and transparent regulatory communication into policy development.