Seoul, Feb 27 South Korea's decision to allow global tech giant Google to transfer government-supplied domestic high-precision map data overseas seems to be tied to Seoul's efforts to address US concerns over non-tariff barriers, industry observers said on Friday.
Earlier in the day, the government approved Google's request to transfer 1:5,000-scale high-precision map data to its overseas facilities, contingent on supplementary measures to address security concerns, reports Yonhap news agency.
Seoul had rejected similar requests by Google in 2007 and 2016, citing national security concerns that sensitive facilities, such as military bases, could be exposed.
The question on whether Seoul would change such a stance had drawn renewed attention amid trade consultations between Seoul and the U.S. administration under President Donald Trump that has taken a hard-line stance on tariff issues.
The Office of the U.S. Trade Representative (USTR) has repeatedly cited South Korea's restrictions on the overseas transfer of location-based data as a key non-tariff barrier affecting American digital services firms.
Earlier this month, Foreign Minister Cho Hyun told lawmakers that USTR Jamieson Greer warned Washington could raise reciprocal tariffs on South Korea back to 25 percent from the current 15 percent if no progress is made in addressing non-tariff barriers.
"The government had long delayed approving Google's request on national security grounds, but trade and tariff pressure from the U.S. has intensified in recent years," Wi Jong-hyun, a professor at the college of virtual convergence at Chung-Ang University, said.
Other non-tariff issues raised by the United States include South Korea's proposed regulations on digital platforms, agricultural quarantine rules and auto certification standards.
The government's move has apparently left domestic platform operators, including Naver Corp. and Kakao Corp., which currently provide more detailed and competitive map services compared to Google, on alert.
Local industry watchers have warned 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 recently assessed that the overseas transfer of high-precision map data could result in cumulative losses of 150 trillion won (US$104.5 billion) to 197 trillion won over 10 years across eight industrial sectors.
Government officials reportedly weighed potential economic upsides, including those in attracting foreign visitors, as the use of Google Maps in South Korea remains very limited due to the lack of high-precision map information.
"The government decision could serve as a catalyst for revitalising South Korea's tourism industry," said Kim Deuk-gap, a professor at the Institute for East and West Studies at Yonsei University.
"Enhanced Google Maps services are expected to significantly improve travel convenience for foreign visitors, which could help attract more tourists. In particular, it may contribute to distributing tourism demand beyond Seoul to other regions, supporting local tourism economies."
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