[Why&Next] "Exporting High-Precision Maps to Google Could Harm Korea's National Interests" Warning to New Government

Since 2007, Google Has Requested Overseas Transfer from the Government
No Domestic Servers, Avoiding Corporate Taxes
"Concerns Over Business Impact and Losing Leadership in Emerging Industries"

As concerns grow that the "overseas transfer of high-precision maps" demanded by Google and the U.S. government could harm national interests, warnings are emerging that the new government, set to launch next month, must make a cautious decision. The reasoning is that if Google gains access to high-precision maps, not only could sensitive spatial information be leaked overseas, but the industrial ecosystem could also become dependent on Google. There are also arguments that accepting the U.S. government's demands would not be advantageous from a trade strategy perspective.

Maps are not just 'navigation' tools... Directly tied to AI competitiveness and national security

The tech industry suspects that Google is requesting high-precision map data from South Korea to use it for its own artificial intelligence (AI) development. By training AI with data on roads, buildings, and topographical features such as mountains and rivers, Google aims to expand businesses like autonomous driving, augmented reality, urban air mobility, and digital twin technologies that replicate the real world in virtual spaces. An industry insider commented, "If map data is used for AI training, South Korean companies in these fields will be hit hard, and Google could seize the initiative in emerging industries that did not previously exist."

Concerns are especially high among small business owners regarding the potential for autonomous driving businesses. On April 30, the Korea Federation of Micro Enterprises issued a statement saying, "Google's demand for the export of high-precision maps is a strategic move to enter the Korean autonomous driving market in earnest through its subsidiary Waymo," and added, "Tens of thousands of jobs in sectors like taxi and chauffeur services will be directly impacted." If dependence increases on Google Maps APIs for Korean ride-hailing or delivery services, business operators in these sectors could face increased costs. Google Maps API fees are reportedly ten times higher than those charged by domestic providers such as Naver, Tmap, and Kakao.

Another issue is that it is difficult to track where Google processes map data overseas, and if sensitive sites such as military facilities are exposed, it could harm national security. Kim Sangbae, professor of political science and international relations at Seoul National University, stated, "Spatial data is no longer just a tool for navigation," and emphasized, "Because it plays a critical role in national security, transportation, public safety, energy, military strategy, and disaster management, this is not a decision to be made lightly." Kim Daecheon, head of the Southern Gyeonggi branch of the Korea Spatial Information Industry Association, predicted, "If the government easily allows the overseas transfer of high-precision maps just because the U.S. government requests it, South Korea will be pressured to make even greater concessions in future FTAs or trade negotiations."

The real reason behind Google's demand for high-precision maps from Korea

The high-precision maps Google is requesting are domestic maps at a 1:5,000 scale. In simple terms, a real distance of 50 meters is represented as 1 cm on the map, allowing detailed views of every alleyway. These maps are strategic assets created over decades with taxpayer money. The cost of updating these maps alone amounts to tens of billions of won each year. Last year, 30 billion won was allocated for this purpose, and this year, the budget is 27 billion won. For reference, Google Maps currently uses 1:25,000 scale maps for its domestic service in Korea.

Google has argued that "improving the quality of Google Maps services based on high-precision maps will benefit Korea, including its tourism industry." In response, the Korean government has consistently stated, "If Google sets up servers within Korea, we will allow the export of maps." This is because if Google transfers the data to overseas servers, even critical location information could be exposed. The government currently provides high-precision maps to companies with servers in Korea, such as Naver and Kakao. Despite this stance, suspicions have been raised that Google's refusal to establish domestic servers while demanding only the map data is an attempt to avoid paying corporate taxes. If Google were to set up servers in Korea, it would be considered as having a business presence in the country and would therefore be subject to corporate tax.

An industry insider said, "Google has avoided paying corporate taxes by arguing that its servers are overseas and its revenue is not domestic," and added, "Even if Google improves its services using high-precision maps, it is highly likely that it will not properly pay corporate taxes on the profits generated." Last year, Naver and Kakao paid 390.2 billion won and 159 billion won in corporate taxes, respectively, while Google Korea paid only 17.3 billion won.

At the latest by August, the new government will make a final decision

This is the third time Google has requested the export of high-precision maps from Korea. Google first made the request to the National Intelligence Service in 2007 but was rejected. In 2016, Google again requested export approval from the National Geographic Information Institute, but the government denied the request, citing security threats as the main reason. However, this year, a shift in the atmosphere is being detected, as the Trump administration has labeled the map export issue a "non-tariff barrier" and applied pressure. The government has stated that it will decide whether to allow the export by August at the latest.

Google's request will be reviewed by a consultative body chaired by the head of the National Geographic Information Institute, consisting of nine members: seven government ministries (the Ministry of Science and ICT, Ministry of Foreign Affairs, Ministry of Unification, Ministry of National Defense, Ministry of the Interior and Safety, Ministry of Trade, Industry and Energy, and the National Intelligence Service) and one private sector representative. The export will only be permitted if all nine members agree. A representative from the National Geographic Information Institute said, "Because an in-depth review is necessary, the initial deadline of May 15 has been postponed by 60 days," and added, "However, the consultative body may convene at any time before the second deadline of August 11, so discussions and a decision could occur sooner."