[2021 National Audit] "Google, Naver, Kakao, etc. Should Also Contribute to the Telecommunications Welfare Fund"

Minister Lim Hye-sook of the Ministry of Science and ICT is responding to questions from lawmakers during the comprehensive audit of the Ministry of Science and ICT at the Science, Technology, Information and Broadcasting Committee held at the National Assembly in Yeouido, Seoul on the 20th. 2021.10.20 Photo by National Assembly Press Photographers [Image source=Yonhap News]

[Asia Economy Reporter Joselgina] There has been a call for big tech companies such as Google YouTube, Naver, and Kakao, which generate massive traffic, to also contribute to the telecommunications welfare of the public.

On the afternoon of the 20th, Representative Lee Yong-bin, who is serving as the Telecommunications Cost Committee member of the Democratic Party's Euljiro Committee, stated at the National Assembly Science, Technology, Information and Communications Committee (STICC) audit targeting the Ministry of Science and ICT, "Discussions on the social contributions of big tech companies are active in countries like the United States," adding, "In our country as well, big tech should be made to contribute to the telecommunications welfare of the people."

Representative Lee emphasized the need to expand telecommunications welfare by referring to the 'Data Welfare Expansion Act,' which he previously introduced as a representative bill to mandate fund contributions related to telecommunications welfare from value-added telecommunications service providers and device manufacturers. The bill primarily assigns the burden of telecommunications service fee reductions for vulnerable groups not only to mobile carriers but also to internet platforms such as Naver and Kakao, as well as mobile device manufacturers like Samsung Electronics.

He argued, "Recently, telecommunications fees are essentially data usage fees," emphasizing the social responsibility of platform operators including Naver and Kakao. The current fee reduction system is structured such that telecom companies like SK Telecom, KT, and LG Uplus bear all the reduction amounts and operational responsibilities.

Additionally, Representative Lee mentioned zero-rating, pointing out, "In Naver's case, power links and video advertisements always appear, but the related data traffic is borne by consumers," and added, "From the user's perspective, they are unknowingly contributing to Naver's revenue generation." He questioned, "Recently, with the expansion of non-face-to-face services due to COVID-19, Naver has earned enormous profits, but what about their related responsibilities?" He explained that the structure where companies gain profits through consumers' burdens should be changed to lead to telecommunications welfare.

In response, Minister Lim Hye-sook of the Ministry of Science and ICT replied, "Because this involves strong regulation on companies, we need to review it considering legal validity, impact on consumer welfare, and effects on businesses." Representative Lee reiterated, "We need to prepare for the post-platform era. Various policies are necessary to contribute to the welfare improvement of telecommunications vulnerable groups."

On the same day, Park Sung-joong, the People Power Party's secretary of the STICC, also argued, "I propose establishing a telecommunications welfare fund operated by the state." Park emphasized, "Diversification is needed not just in telecommunications but also in various services related to telecommunications," adding, "We need to create a fund by including platform operators like YouTube, which cause large traffic volumes, along with KT, LG Uplus, SK Telecom who currently bear the fee reduction costs, plus Naver and Kakao, and the state should take the lead in comprehensively reforming the system."

Minister Lim responded, "There are many aspects to consider, so we will conduct a thorough review."