[2021 National Audit] Naver's Lee Hae-jin: "Network Usage Fees Should Be Paid According to Usage"

Appearance of witnesses at the National Assembly Science and ICT Committee year-end inspection on the 21st
Netmarble and Kakao pay 70 to 100 billion KRW annually for network usage fees
Overseas CPs face free-riding controversy

[Asia Economy Reporter Cha Min-young] As controversies over 'free riding on networks' by Google, which operates YouTube, and online video service (OTT) Netflix have intensified, domestic online platform companies have raised their voices, saying "there is a need to resolve reverse discrimination."

Lee Hae-jin, Global Investment Officer (GIO) of Naver, appeared as a witness at the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee comprehensive audit on the 21st and said, "We are concerned about the issue of reverse discrimination," adding, "If we pay network costs, overseas companies that use (traffic) much more than us should also pay appropriate fees for fair competition."

Overseas major content providers (CPs) such as Google and Netflix have been criticized for ignoring the burden of traffic generation due to domestic network usage. On the other hand, Naver and Kakao pay network usage fees of about 70 billion to 100 billion KRW annually to telecom companies, raising concerns about reverse discrimination against domestic companies.

Kim Beom-su, Chairman of the Kakao Board, also said, "It is difficult to express an opinion because it is hard to know the relationship and contract forms between global service providers and telecom companies," but added, "Please work hard in the National Assembly to establish a fair internet environment."

Although the 'Guidelines on Fair Internet Network Usage Contracts' prepared by the Korea Communications Commission came into effect on January 27 last year, there have been criticisms that the lack of legal binding power results in insufficient effectiveness in sanctioning overseas operators.

Han Sang-hyuk, Chairman of the Korea Communications Commission, who appeared as a witness that day, responded "Yes" to the question, "Do you actively support the KCC legislation?" He also announced a policy to take active measures.