Google Korea: Billions in Free Network Usage | 2023 Data

Google Accused of ‘Free Riding’ on Korean Networks,Owes Up to $275 Million in Usage Fees

A new analysis suggests Google benefited from an estimated 214.7 billion to 347.9 billion Korean won ($165 million to $275 million USD) in unpaid network usage fees in Korea last year, sparking debate over fair compensation for infrastructure costs.

The allegations, released on October 13, 2025, stem from a report by Representative Choi Soo-jin of the Peopel Power Party, a member of the National Assembly’s Science, Technology, Data, Broadcasting and Communications Committee. The analysis examined Google’s business and audit reports, a competition assessment from the Korea Information and Communication Policy Institute (KISDI), and existing network usage fee structures paid by domestic companies.

Did you know? – The report compares Google’s situation to domestic companies like Naver and Kakao, which pay network usage fees. These fees are a percentage of their sales, unlike Google’s current arrangement.

According to Representative choi’s findings, Google’s compensation for utilizing the Korean internet network should have been calculated at 214.7 billion won based on sales figures, and 347.9 billion won based on its share of domestic internet traffic. The sales-based calculation draws a parallel to the practices of Naver and Kakao, which paid network usage fees equivalent to 1.8% and 2.0% of their sales, respectively, in 2016. Applying this benchmark to Google Korea’s estimated 11.302 trillion won in sales last year yields the 214.7 billion won figure.

Further bolstering the claim, KISDI estimates that total sales for internet dedicated lines reached 767.1 billion won last year, factoring in growth within the telecommunications industry. Google’s 31.2% share of internet traffic as of the end of last year represents a significant portion – 68.8% of sales – that currently goes uncompensated.”calculating this in reverse,” Representative Choi explained, “the total market size is 1.115 trillion won, indicating that the appropriate network usage fee for Google based on last year’s traffic share is estimated at 347.9 billion won.”

reader question: – Do you think global tech companies should pay network usage fees in countries where they operate? Why or why not? share your thoughts in the comments.

The situation, according to Representative Choi, represents a clear case of market failure. “Although payment for network use is a reasonable order in the market, it is a typical case of market failure that only Google uses its overwhelming global market dominance to enjoy free benefits of approximately 200 to 300 billion won per year without paying,” she stated.

The controversy highlights a growing concern over the imbalance between global content providers (CPs) and domestic information and communication technology (ICT) companies. Representative Choi emphasized the need for government intervention, advocating for revisions to the ‘Network Free Riding Prevention Act’ and active mediation in network usage fee negotiations. This, she argues, is essential to “correct the tilted playing field centered on global CP and resolve the problem of reverse discrimination against domestic ICT companies.”

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