By Choi Sung-jin
A tug-of-war is continuing between the Korean government and Google over the company’s demand to use the nation’s geographic data abroad for commercial purposes.
The world’s largest Internet company insists it needs an uncensored map to expand map-related services covering all of Korea. The Seoul government says it cannot let all location information on national security facilities be shown abroad.
Google asked the National Geographic Information Institute (NGII) to approve its plan to provide Korea’s geographic data services overseas, on June 1. The company made a similar request to National Intelligence Service in January 2007 but was turned down. The government plans to decide whether to allow it by Aug. 25.
The government has maintained that it could provide the data only if Google deleted information related to national security facilities or agreed to Korea managing the use of personal data and national security-related information.
“All other Internet businesses, including Naver, Kakao and SK Planet, have done so,” an official said. “We cannot provide the privilege of using data with no such strings attached only for Google.”
Google wants access to undeleted geographic images of Korea to enhance services related to Google Maps, including location-based advertisements and automobile navigation services. Global map data are also indispensable in developing autonomous vehicles and operating systems for automobiles, both of which are among Google’s future growth engines, according to industry experts.
According to Google, however, these services are impossible in Korea because the map Google uses now is inaccurate and has no regional information on streets and stores. “We want the same map as that used by Naver and other Korean companies,” a company official said.
But the government’s stance on this request appears to be firm.
“In the satellite photos already provided by Google, all the facilities of national security, including Cheong Wa Dae and military installations, are exposed,” said Choe Byong-nam, director general of NGII. “If they combine satellite photos and large-scale maps, exact locations and outlooks of security facilities are exposed on the Internet, and we cannot let this happen.”
Choe said all of Google’s Korean counterparts, including Naver, Kakao and SK Planet, were either not showing these facilities on their maps or had deleted such photos.
Some industry executives say there would be no problems if Google would move to Korea its server that stores and provides data. “If Google brings its server to Korea, it will not have to take data out of this country,” said an industry executive. “It can use the data under the government’s supervision.”
Google has data centers and servers in the United States, the Netherlands, Singapore and Taiwan, but not in Korea, and Koreans connect to these overseas servers through the Internet.
Experts say the relocation of a Google server to Korea could also resolve taxation problems.
Google has more than 1 trillion won ($8.3 billion) annual sales in Korea, but pays almost no corporate taxes to the host government, slipping through the loophole that Seoul cannot impose taxes as long as a foreign company’s business equipment, such as a server, is not here, however much revenue it makes in the nation, they say.
“It is an expedient of sorts that Google, while conducting business activities in Korea and making revenue, is free from tax payment and government controls just because the company is not operating its server here,” said Professor Chung Wook-hyeon of Sogang University.