Netflix Vice President to Reinitiate Meeting with Korean Lawmaker... Likely on the 19th

Seven Pending Bills Related to Network Usage Fees

[Asia Economy Reporter Minyoung Cha] Dean Garfield, Vice President of Public Policy at Netflix, which is engaged in a legal dispute with SK Broadband over network usage fees, is expected to visit Korea next week and meet with members of the National Assembly's Science, Technology, Information and Broadcasting Committee (STIBC).

According to the STIBC and the telecommunications industry on the 12th, Vice President Garfield recently requested meetings with ruling and opposition lawmakers, including Democratic Party member Seungrae Cho and People Power Party member Youngsik Kim, both of whom belong to the STIBC. Currently, the 19th is the most likely date. A STIBC official stated, "Netflix requested possible dates, and the specific schedule is being coordinated."

During this meeting, Vice President Garfield is expected to convey Netflix's opinions regarding the amendments to the Telecommunications Business Act that require content providers (CPs) to pay network usage fees. There are currently seven Netflix-related bills pending in the National Assembly. The Korea Telecommunications Operators Association, representing domestic telecom companies, also conveyed to the Presidential Transition Committee the position that mandatory internet network usage fees for global CPs should be pursued.

Some speculate that this visit might instead become a legislative "spark." The ruling and opposition floor leaders of the STIBC had previously agreed through prior discussions not to include Netflix-related network usage fee bills in the agenda for the STIBC's Information and Communications Broadcasting Bill Review Subcommittee scheduled for the 20th. Another STIBC official hinted, "During the enactment of the law banning forced Google in-app payments, Google’s aggressive opposition to legislation only created a more negative perception," adding, "A similar pattern could unfold."

This will be Vice President Garfield's second visit to Korea since November last year. During his visit last year, Garfield expressed at a press conference, "I am very pleased to visit Korea following the great success of Squid Game," but clearly drew a line regarding the payment of network usage fees. He later met with STIBC members Youngsik Kim and Wonwook Lee of the Democratic Party but maintained Netflix’s refusal to pay network usage fees, asking for "consideration of fair network usage fee setting and fair use of collected fees."

Netflix is currently engaged in a legal dispute with internet service provider (ISP) SK Broadband over the payment of network usage fees. In April 2020, Netflix filed a declaratory judgment lawsuit against SK Broadband claiming "there is no obligation to pay network usage fees," but effectively lost in the first trial and is currently appealing. On the 16th of last month, the first hearing for Netflix’s appeal and SK Broadband’s counterclaim was held at the Seoul High Court.