[After Tariff Talks] Digital Trade Issues Remain: Map Data, Onplebeop, Cloud Still Unresolved (Comprehensive)

Digital Non-Tariff Barriers Hidden Behind Resolved Tariffs
Onplebeop Regulates Self-Preferencing and Bundling; U.S. Claims 'Big Tech Discrimination'
Google and Apple Apply for Map Data Export... To Be Discussed at Korea-U.S. Summit
Cloud Service Discrimination and Network Usage Fee Issues Remain Unresolved

With South Korea and the United States reaching an agreement on tariff issues, tensions surrounding trade conflicts are expected to ease somewhat for the time being. However, a dominant analysis suggests that key issues in the digital economy?such as the Online Platform Act (Onplebeop), the export of high-precision maps, and discriminatory practices against foreign cloud providers?remain unresolved and are still in a 'deferred' state.

According to trade authorities on July 31, the results of the Korea-U.S. tariff negotiations did not include digital non-tariff barriers such as the Onplebeop or high-precision maps. The Presidential Office also stated, "There was no such discussion." Nevertheless, there is a prevailing view that it is difficult to rule out the possibility that these issues will resurface in the future. Yeo Han-koo, head of trade negotiations at the Ministry of Trade, Industry and Energy, also said on this day, "Tariffs may continue in the future, and pressure to eliminate non-tariff barriers is also likely to persist."

An Jeong-sang, adjunct professor at Chung-Ang University Graduate School of Communication, analyzed, "While it was not the core of the deal with the Trump administration, pressure regarding non-tariff barriers has continued, mainly from the U.S. Trade Representative (USTR). The fact that these issues were excluded from the negotiation agenda does not mean they have disappeared, but rather that the situation has shifted."

One of the main issues is the export of high-precision map data. Google and Apple recently submitted applications to the Korean government to transfer high-precision map data at a 1:5,000 scale to overseas servers. In particular, in the case of Google, the government must reach a decision on whether to allow the export by August 11. The U.S. side has pointed out this issue in the USTR's National Trade Estimate (NTE) report, and recently, U.S. center-right organizations raised the issue in an open letter to President Trump, stating, "Korea's map data regulations are blocking the $7.6 billion (approximately 10.5412 trillion won) location-based services market."

The Korean government maintains its position that "overseas export should be carefully reviewed" due to security concerns. Kim Yoon-duk, nominee for Minister of Land, Infrastructure and Transport, expressed a negative stance at a confirmation hearing on June 29, stating, "Although there may be a need to consider (the export of maps) proactively due to trade issues, national defense and the safety of the people should take precedence." Bae Kyung-hoon, Minister of Science and ICT, and Choi Hwi-young, nominee for Minister of Culture, Sports and Tourism, also mentioned that information sovereignty and the impact on domestic industries should be comprehensively considered.

The Presidential Office previously announced that the issue of map data export would be discussed separately at the Korea-U.S. summit to be held within two weeks. Meanwhile, there are expectations within the domestic mapping industry that the applications will be rejected. An industry insider said, "It is seen as a meaningful step forward that the current government has not traded national security for trade negotiations," adding, "We will have to wait for the final decision of the consultative body, but we cautiously expect a wise decision."

Foreign cloud service providers (CSPs) continue to demand expanded access to the public sector market. Global CSPs such as AWS, Microsoft, and Google have obtained 'low' grade CSAP security certification for cloud services provided to Korean public institutions, but this is limited to open information such as tourism guides and website operations.

The problem lies in the 'physical network separation' requirement, which blocks entry into the 'medium' grade. Global CSPs are demanding that the requirement be eased, arguing that 'logical network separation' has also been internationally proven to be secure. Physical network separation requires completely separating equipment and lines, whereas logical network separation achieves separation through software settings. Yoon Jeong-won, head of AWS Korea's public sector, pointed out at a press conference in April that "even the U.S. Department of Defense allows logical network separation."

The Onplebeop is also one of the main issues raised by the United States. The Onplebeop, one of President Lee Jaemyung's key pledges, aims to restrict self-preferencing and bundling by major platforms and is structured similarly to the European Union's Digital Markets Act (DMA). The law designates specific platform operators and imposes preemptive obligations, but the United States opposes it on the grounds that, if passed, it could disadvantage U.S. big tech firms. An official from the Fair Trade Commission stated, "The Onplebeop was not discussed during this round of negotiations," but added, "We are continuing to monitor the situation to see if there will be a possibility of renegotiation in the future."

Experts generally agree on the need for regulation, but emphasize that policy adjustments reflecting the characteristics of the digital ecosystem are necessary rather than uniform regulations. Kwon Jae-han, senior researcher at the Korea Internet Corporations Association, stressed in a report by the Digital Economy Research Institute, "After the EU's DMA regulatory measures, there have been market distortions such as increased marketing costs between companies, deteriorating liquidity for small and medium platforms, and a decline in user experience," adding, "Rather than simple universal regulations, sophisticated policy design based on detailed context is needed."

Network usage fees are also a source of friction with the United States. A bill is currently being discussed in the National Assembly that would require global content providers (CPs) generating large volumes of traffic to pay for the use of domestic telecommunications networks, an issue strongly opposed by the USTR. At the center of the controversy over network usage fees is Google. While Netflix has reached a settlement with SK Broadband and is paying a certain amount, Google continues to generate massive traffic while effectively avoiding sharing the costs of network usage with telecom operators. Professor An commented, "Network usage fees are a matter of fair cost sharing," adding, "The current structure, which allows free riding on domestic infrastructure, needs to be improved."