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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, October 13 — South Korean lawmaker Choi Soo-jin claimed that Google failed to pay between ₩214.7 billion and ₩347.9 billion (USD 150–250 million) in network usage fees last year, despite accounting for nearly one-third of total internet traffic in the country.
Citing data from the Financial Supervisory Service and the Korea Information Society Development Institute (KISDI), Choi said, “While domestic platforms like Naver and Kakao pay around 1.8–2% of revenue as network fees, Google uses its dominant market power to avoid payment — a clear case of market failure and structural discrimination.”
According to KISDI’s Competition Assessment Report on the Telecom Market, the domestic internet leased-line market was valued at ₩1.115 trillion in 2023. Applying Google’s 31.2% traffic share, the estimated fair payment would be ₩347.9 billion, far exceeding what Korean tech firms contribute.
Choi criticized the paralysis of the Korea Communications Commission (KCC) for enabling Google’s non-payment, noting that “even the in-app payment penalty against Google and Apple was delayed due to the suspension of the KCC chair.”
She reiterated plans to reintroduce the “Anti-Free Riding Act”, which would require all global tech firms operating on Korean networks to pay fair usage fees.
“Korean ICT companies pay hundreds of billions of won every year, while foreign Big Techs enjoy exceptions,”
Choi said. “This imbalance cannot continue — the government must step in and enforce fair contribution.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
