Google wins Korea map access after 20-year freeze, sparking fears of industry wipeout
Google Maps could soon work properly in South Korea after Seoul agreed, Feb. 27, to share data with the popular app, but restrictions will stop sensitive military sites from being revealed. AFP-Yonhap
South Korea's geospatial data industry faces an uncertain future after the government conditionally approved Google's request to export high-precision map data, ending a 20-year blockade.
While some experts warn the domestic ecosystem could suffer up to 197 trillion won ($132.16 billion) in damages over the next decade, others argue the U.S. tech giant will act as a market disruptor, forcing local companies to accelerate innovation in fields ranging from logistics to autonomous driving.
The core of the dispute centers on 1:5,000-scale map data, which details roads, buildings and terrain. Until now, only domestic companies were permitted to access this data.
A 1:5,000-scale high-precision map requested for export by Google, left, is compared with the map currently used in its services. Both maps display the area near the Gyeongju Arts Center, but the latter lacks detailed depictions of terrain and buildings. Courtesy of GeoStory.
While the general public associates spatial data primarily with navigation apps, the industry is a complex, multi-layered ecosystem. It begins with companies collecting coordinate data via aerial and satellite imagery, followed by processing firms that refine this raw information into functional maps. Local platform giants like Naver and Kakao then build location-based services upon this foundation.
Recently, the use of map APIs — tools that let apps access mapping data — has surged. Delivery, real estate and mobility firms rely on these APIs for real-time tracking, calculating optimal routes and analyzing traffic patterns. The data is also foundational for emerging technologies, serving as the basis for digital twins — virtual clones of physical cities — and providing the lane-level detail required for autonomous vehicles.
The country's spatial data industry, however, is vast but fragile. According to SpaceN, under the Ministry of Land, Infrastructure and Transport, the sector generated 11.28 trillion won in revenue in 2024, a 75 percent increase from 2013. The industry comprises 5,854 businesses, the vast majority of which are micro-enterprises or small-to-medium-sized firms.
Experts warn these smaller companies are highly vulnerable to a global competitor entering the market without strict institutional safeguards.
"Considering Google's technological prowess and network, it gives them an unfair advantage," said Choi Jin-mu, a geography professor at Kyung Hee University.
Industry insiders fear that domestic firms will simply use Google's tools for convenience rather than building and operating their own maps, if the tech giant integrates the precision map data into its own artificial intelligence and cloud infrastructure to offer APIs.
"Once subordinated to technological standards, the switching cost is high, leaving companies vulnerable to Google's licensing policies," an industry official warned, highlighting the risk of vendor lock-in.
Economic models support these concerns. Jeong Jin-do, a professor at the Korea National University of Education's Graduate School of Educational Policy, used an economic forecasting model to project the economic fallout. He forecast exporting map data could lead to 197 trillion won in losses over 10 years.
"Even if costs don't rise immediately after the export, expenses from the spatial data leak will surge around 2029, with structural costs accelerating after 2032," Jeong said.
A sign for Google Cloud offices is seen in Sunnyvale, California, U.S. on April 16, 2024. Reuters-Yonhap
Conversely, some view Google's entry as a necessary catalyst for growth. Operating in the same environment as a global big tech will allow domestic companies to verify the competitiveness of their advanced technologies, such as digital twins and autonomous driving, potentially spurring greater investment.
"We must seek a direction that does not lag behind global competitors while protecting the domestic industry," said Jang Ki-tae, head of the KAIST Mobility Research Institute at the Korea Advanced Institute of Science and Technology.
Despite differing views on Google's potential impact, experts agreed that strict export conditions and safeguards are necessary, particularly for data generated by AI.
"It must be stipulated in text what and how to sanction when export conditions are violated, and regulations must also be applied to AI-generated derivative data," said Ahn Jong-wook, president of the Korean Society of Spatial Information and a professor of smart city engineering at Anyang University.
Kim In-hyun, CEO of Korea Spatial Information & Communication, echoed the need for oversight. "We must review a system to monitor not only big tech's compliance with conditions but also the overall use of exported data," Kim said.
This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.