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Lawmakers accuse Korea of holding back Internet firms
By Korea HeraldPublished : Oct. 15, 2013 - 19:42
Lawmakers have claimed the government over-regulated local online companies and subsequently allowed their foreign counterparts more leeway, a lawmaker said in an assembly audit on the Ministry of Science, ICT and Future Planning on Monday.
Recently, the government presented Internet search guidelines that essentially obligated local Web portals to disclose their search standards and principles. Leading portals such as Naver, Daum Communications and SK Communications immediately announced their willingness to accept the new standards.
“The guidelines also include foreign companies like Google and Yahoo. However, I doubt they would abide by this, meaning the guidelines will result in discrimination against local online companies,” said Rep. Yoo Seung-yoo, demanding the government scrap the plans.
Google is quickly following behind Naver, the dominant search portal in Korea, with Google visitors reaching 30.2 million as of September, which is almost on par with Naver‘s 31.2 million, according to Yoo.
Addressing these and other related concerns, the Minister of Science, ICT and Future Planning Choi Mun-kee said, “We mapped out the guidelines to protect the users, and this primarily included the Web portals as they have a big influence on circulating information such as news and shopping information. We may take into account other search services down the road, if necessary.”
Legislators also brought up the online real-name system which was implemented in 2009 aiming to prevent malicious comments.
“Domestic companies are regulated under the system and must now ask for users’ real names, but foreign companies are not obligated,” Rep. Nam Kyung-pil said.
Since the law was implemented, the UCC market share of Google’s YouTube jumped to 74.4 percent from 1.6 percent, he added. Until late 2008, domestic companies like Pandora TV, Daum TV port and AfreecaTV dominated the UCC market while YouTube’s share was 1.6 percent.
Choi said while he did not agree with such claims, he said regarding YouTube, it may have gained from the local government‘s stringent regulations against the domestic players.
By Shin Ji-hye (shinjh@heraldcorp.com)
Recently, the government presented Internet search guidelines that essentially obligated local Web portals to disclose their search standards and principles. Leading portals such as Naver, Daum Communications and SK Communications immediately announced their willingness to accept the new standards.
“The guidelines also include foreign companies like Google and Yahoo. However, I doubt they would abide by this, meaning the guidelines will result in discrimination against local online companies,” said Rep. Yoo Seung-yoo, demanding the government scrap the plans.
Google is quickly following behind Naver, the dominant search portal in Korea, with Google visitors reaching 30.2 million as of September, which is almost on par with Naver‘s 31.2 million, according to Yoo.
Addressing these and other related concerns, the Minister of Science, ICT and Future Planning Choi Mun-kee said, “We mapped out the guidelines to protect the users, and this primarily included the Web portals as they have a big influence on circulating information such as news and shopping information. We may take into account other search services down the road, if necessary.”
Legislators also brought up the online real-name system which was implemented in 2009 aiming to prevent malicious comments.
“Domestic companies are regulated under the system and must now ask for users’ real names, but foreign companies are not obligated,” Rep. Nam Kyung-pil said.
Since the law was implemented, the UCC market share of Google’s YouTube jumped to 74.4 percent from 1.6 percent, he added. Until late 2008, domestic companies like Pandora TV, Daum TV port and AfreecaTV dominated the UCC market while YouTube’s share was 1.6 percent.
Choi said while he did not agree with such claims, he said regarding YouTube, it may have gained from the local government‘s stringent regulations against the domestic players.
By Shin Ji-hye (shinjh@heraldcorp.com)
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Articles by Korea Herald
