April 19, 2024

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[THE INVESTOR] Since 2007, Google has sought to utilize the government-generated 1:5000-scale map of Korea to improve its Google Maps service, but to no avail.

The Korean government has not given the California-based firm the green light for the firm’s request which would mean housing the information outside the peninsular, citing national security as a major reason. 

Related article: Korean gov’t delays decision on Google’s map data request

South Korea, which is technically still at war with neighboring North Korea, said the use and storage of the map data overseas could expose its military facilities to foes.

Upon the latest request from Google to export the detailed map data overseas, government ministries and agencies in charge of reviewing the requests postponed the final decision on Aug. 24 for 30 days, due to the importance of the matter.

An untold reason behind the series of rejections and postponements so far is that government ministries and agencies, reviewing Google’s request, are worried about public criticism they could receive if the map information, for which nearly 1 trillion won (US$897) of taxpayer money has been spent, falls into the hands of a foreign firm.

“The fact that the map is made with the taxpayers’ money somehow make things complicated for the latest case,” an official from the state-run National Geographical Information Institute said.

Google, which pays no corporate tax in running businesses here, would, if approved, be getting a free ride off Korean taxpayers.

The initial annual budget for the development and maintenance of the map stood at 15 billion won in 1993, but the budget has increased to 80 billion won in recent years, according to the NGII, coming to nearly 1 trillion won in total.

Aimed at recovering costs spent on the map, Korean ministries and agencies have been trying to levy taxes on Google, requiring Google to set up fixed facilities here, like data centers, and pay due corporate taxes.

Foreign firms and their local branches are not obliged to pay corporate taxes if they do not run fixed facilities in the nation.

Google currently pays network operator SK Telecom a nominal fee to use the Korean telecom firm’s map information.

SK Telecom and internet giant Naver each bought the map information from NGII for 300 million won in the past, and the two firms, respectively, have tailored the map and updated it themselves on a regular basis.

SK Telecom, though, seems to be making efforts to distance itself from the map issue.

“Whether the government approves Google’s request or not, it will not affect SK Telecom’s business at all and the contract terms and fee rate for Google’s use of SK Telecom’s map data will not likely change,” Moon Jin-ho, a public relations representative said.

By Kim Young-won (wone0102@heraldcorp.com)