[비즈한국] With the government currently reviewing Google’s request for the export of high-precision map data, the industry is keeping a close watch on the government’s initial conclusion. Major map service providers, including Naver035420 and Kakao035720, who would inevitably face a hit, are busy strengthening their local competitiveness by pouring resources into upgrading their services.
There is a high probability that the government will change its stance and approve the export this time, largely due to repeated pressure from the U.S. Trump administration, which has labeled the issue a ‘non-tariff barrier.’ While Google’s justification for this request, made for the first time in nine years, is to improve its map services within Korea, there are significant concerns that its ‘true purpose’ is to secure market leadership in data collection and autonomous driving. Some also argue that map information combined with satellite data and artificial intelligence (AI) could potentially escalate into future data security issues.
South Korea’s High-Precision Maps Become a ‘Negotiation Card,’ Industry Awaits First Decision
The government, having received Google’s request for the overseas export of high-precision map data, will hold a review meeting next week to decide whether to approve it. The National Geographic Information Institute (NGII) under the Ministry of Land, Infrastructure and Transport, which is the governing body, is currently collecting opinions from the industry and academia while reviewing the matter alongside relevant central ministries concerning security, trade, ICT, industry, and diplomacy.
While some observe that the government, which has few cards to play, might concede on map data exports during tariff negotiations with the U.S., the NGII has refrained from stating an official position. Kim Hyung-soo, Head of the Smart Spatial Information Division at the NGII, attended a National Assembly forum on the 8th and stated, "While map exports are important for industrial development and the creation of new services, the government prioritizes strengthening national interests, including security and the establishment of information sovereignty," adding only that "we will review it carefully and make a decision after sufficient discussion through the consultative body."
In February, Google requested permission to export 1:5,000 scale map data to its overseas data centers. This is its third request, following those in 2007 and 2016. If the export is approved, it would be the first case of high-precision map data being allowed for overseas export to a private foreign company. High-precision maps with a 1:5,000 scale are used for urban planning and social overhead capital (SOC) construction. The margin of error is merely 3 meters. The scale used for general navigation maps is 1:25,000, which can still be used freely without government permission.
For the NGII to export high-precision map data, it must determine whether to grant permission through the 'Consultative Body for the Export of Survey Results' in accordance with relevant laws. A unanimous conclusion from the consultative body, composed of eight ministries and private experts, is required. Based on the request date (February 18), the first deadline for a response is the 15th of this month. If extended once, the consultative body must reach a final (second) decision by August 8.
Divided Industry Response… IT Sector ‘Suffering Silently’
As Minister of Land, Infrastructure and Transport Park Sang-woo stated at the National Assembly on the 28th of last month that “the government has not yet formed a position,” disagreements between ministries are evident. The Ministry of National Defense, the National Intelligence Service, and the Ministry of Land, Infrastructure and Transport are maintaining a cautious stance due to risks such as the exposure of major security facilities. The Ministry of National Defense’s basic position is that, given the security situation of a divided nation currently in a state of armistice, "export is only possible if there are no security-related exceptions."
Relevant ministries are listening to the opinions of major companies like Naver, Kakao, and Tmap Mobility to weigh the potential impact on the industry. The sentiments of domestic IT companies are complex. While the unique security environment acted as a "fence," allowing them to maintain a stable market position, a head-on collision becomes inevitable if Google enters the market in full force. Seemingly aware of this, the three companies have focused on securing competitiveness by launching new services over the last three months. Naver is linking public data—such as information on public sports facilities, meeting rooms, and resources for the mobility-impaired—to its map while upgrading services for foreigners. Kakao has begun improving functions, such as indoor maps for train stations and airport railroad congestion information.
Map export is not just a battle over technology and service competitiveness. Domestic industry players and scholars argue that global Big Tech’s strategy of capturing revenue while dodging corporate taxes could be implemented more comprehensively. Last year, Google Korea recorded 386.8 billion won in revenue and paid 17.2 billion won in corporate tax. This is less than 5% of what Naver (390.2 billion won) or Kakao (159 billion won) paid. Even combining the corporate taxes paid by three entities—Google Cloud Korea, Google Payment Korea, and Google Korea—the total is only around 24 billion won.
Google has been reducing its reported domestic revenue by attributing it to its Asia-Pacific regional headquarters (Singaporean entity). The Korea Academic Society of Financial Management estimated that Google’s actual domestic revenue reaches 12 trillion won. The appropriate corporate tax based on this would be around 518 billion won. An IT industry official pointed out, "There are ways to use high-precision data even now. They could set up servers in Korea and pay the appropriate taxes. This tax would be reinvested into map construction," adding, "It is unreasonable that (only Google) is starting from a different line."
On the other hand, the Ministry of Trade, Industry and Energy, which is in charge of tariff negotiations, has shown a positive view on map exports. Minister of Trade, Industry and Energy Ahn Duk-geun explained at a plenary meeting of the Special Committee on Budget and Accounts last month that "(The industry) hopes to resolve the technical issues that can address security concerns, and for Korea to be serviced on Google Maps, which is provided in the languages of 80 countries worldwide. They want our system to be built more autonomously regarding location-based services."
In essence, the government is citing the ‘industry’ position differently depending on the ministry. An IT industry official emphasized, "Industry autonomy and legal compliance are different issues," adding, "In terms of autonomy principles, ensuring fair competition is more important than anything else."
In the spatial information industry, which provides the technology for creating high-precision maps, there is criticism that the reasoning behind creating 1:5,000 scale maps needs to be reconsidered. Kim Dae-cheon, Chairman of the Gyeonggi Southern Branch of the Korea Spatial Information Industry Association, said, "This data is used to provide foundational material for decision-making related to national administrative tasks such as the rational utilization of national land resources, water resources, environment, construction, basic urban planning, and various licensing procedures. I do not believe this is work that a global company like Google can support."
Experts collectively agreed that the potential impact of exporting precision maps must be thoroughly examined. Hwang Cheol-soo, a professor of Geography at Kyung Hee University who attended the National Assembly forum, pointed out, "Maps are a ‘melting pot’ of spatial information where all of society’s decision-making is concentrated," adding, "In countries like China and India, foreign companies enter by following specific regulatory conditions, such as partnering with domestic firms. There are almost no countries that simply hand over their market doors."
Kim Sang-bae, a professor of Political Science and International Relations at Seoul National University, noted, "Spatial information has the nature of 'emerging security.' When combined with AI and satellite data, the patterns between data can become connected to national security."