[Column] Repeated 'Mandatory Network Usage Fee Law' Bill

[Asia Economy Reporter Lim Hye-seon] Although the National Assembly is trying to unite opinions to create the world’s first law mandating ‘network usage fees,’ it seems unlikely to reach a conclusion. On the 20th, the ruling and opposition parties agreed to hold a public hearing hosted by the Science, Technology, Information and Broadcasting and Communications Committee on a bill that would require global content providers (CPs) such as Netflix and YouTube, which generate massive data traffic, to pay network usage fees to telecommunications companies. At the same time, the Culture, Sports and Tourism Committee held a ‘Discussion on K-Content Industry and Desirable Network Usage Policy Directions,’ expressing opposition to the mandatory network usage fees. On the surface, it looks like a power struggle between ministries, but the situation is more complicated.

Many of the lawmakers who proposed the mandatory network usage fee bill belong to the major opposition party, the Democratic Party of Korea. Lawmakers opposing the bill in the Culture, Sports and Tourism Committee are also from the same Democratic Party, showing unclear consensus within the party. Among government ministries, one side supports telecommunications companies while the other sides with CPs, causing the ICT industry to be divided. The National Assembly’s inability to take a firm stance is deepening the rift between ministries and the ICT industry.

At the public hearing held by the Science, Technology, Information and Broadcasting and Communications Committee, nearly three hours were spent with telecommunications companies and CPs going in circles. Experts in attendance only presented fundamental arguments, and no in-depth discussion on the bill took place.

Yoon Sang-pil, Executive Director of the Korea Telecommunications Operators Association, said, "If we allow Google and Netflix, which account for massive traffic, to free-ride, various problems will arise." On the other hand, Choi Sung-jin, CEO of the Korea Startup Forum, expressed concern that "making what was left to market autonomy mandatory will weaken the bargaining power of CP startups in the long term." Both sides repeated their arguments countless times.

At the discussion hosted by the Culture, Sports and Tourism Committee, the same topic was debated with the same arguments. Lee Sang-heon, a Democratic Party lawmaker who hosted the discussion, said, "If the bill passes, the U.S. government will also require domestic content companies to pay network usage fees," adding, "I am worried it will dampen the success of K-Content."

The mandatory network usage fee is an issue attracting global attention, not just in Korea. The National Assembly and relevant ministries must work together to reduce side effects and increase positive effects. To avoid becoming a laughingstock and receiving criticism for dividing the ICT industry, the National Assembly must not only speak its own mind but also listen carefully to others.