Seoul: South Korea's decision to allow global tech giant Google to transfer government-supplied domestic high-precision map data overseas is believed to be linked to efforts to address U.S. concerns over non-tariff barriers, according to industry observers.
According to Yonhap News Agency, the government approved Google's request to transfer 1:5,000-scale high-precision map data to its overseas facilities, with supplementary measures to address security concerns. This marks a shift from previous rejections in 2007 and 2016, which were based on national security concerns regarding sensitive facilities like military bases.
The decision comes amid renewed attention during trade consultations between Seoul and the U.S. administration, which has emphasized tariff issues. The U.S. Trade Representative (USTR) has highlighted South Korea's restrictions on location-based data transfer as a non-tariff barrier affecting American digital services firms.
Earlier this month, Foreign Minister Cho Hyun informed lawmakers that USTR Jamieson Greer warned of potential tariff increases on South Korea if no progress is made on non-tariff barriers. Wi Jong-hyun, a professor at Chung-Ang University, noted that trade and tariff pressure from the U.S. has intensified the government's decision-making process.
Other non-tariff issues raised by the U.S. include regulations on digital platforms, agricultural quarantine rules, and auto certification standards. The government's move has raised concerns among domestic platform operators like Naver Corp. and Kakao Corp., who currently provide more detailed map services than Google.
Industry watchers caution that allowing the overseas transfer of high-resolution map data without requiring foreign firms to establish domestic data centers may undermine fair competition. The Korean Society for Geospatial Information Science assessed potential economic losses of up to 197 trillion won over 10 years across various sectors.
Despite these concerns, government officials considered potential economic benefits, such as attracting foreign visitors, since Google Maps' usage in South Korea has been limited due to the lack of high-precision map information. Kim Deuk-gap, a professor at Yonsei University, suggested that the decision could boost South Korea's tourism industry by improving travel convenience for foreign visitors and supporting local tourism economies.