[2020 National Audit] "Korean Companies Concerned About Dependence on Google... Government Should Form TF"

Yoon Young-chan, Democratic Party of Korea lawmaker

[Asia Economy Reporter Bu Aeri] Regarding Google's announcement of mandatory in-app payments and a 30% commission fee policy, there are calls for the government to form a task force (TF) to respond comprehensively.

On the 8th, Yoon Young-chan, a member of the National Assembly's Science, Technology, Information and Communication Broadcasting Committee from the Democratic Party of Korea, urged at the morning national audit session, "Please create a TF that the Fair Trade Commission, National Tax Service, Korea Communications Commission, and Ministry of Science and ICT can respond to."

Rep. Yoon pointed out, "Mandatory in-app payments are not only a matter of user convenience but also a problem where our system becomes dependent on global service providers," adding, "As Google integrates the billing system, new startups and Korean companies face difficulties creating customized systems. System dependency is a major issue."

He continued, "So far, our government has responded to Google in a fragmented manner," and added, "In-app payments are handled by the Korea Communications Commission, network issues by the Ministry of Science and ICT, and tax issues by the National Tax Service or Fair Trade Commission, so the overall situation is not being comprehensively viewed."

Rep. Yoon especially referenced the EU's response and repeatedly emphasized to Han Sang-hyuk, Chairman of the Korea Communications Commission, the need to establish a government TF to respond to global giant platform companies. He said, "Many countries are competitively regulating global operators by imposing taxes, and the US government has also pointed out problems with global operators."

In response, Chairman Han said, "I will actively express my opinions."

Meanwhile, Google announced that starting from October next year, all payments occurring when using apps distributed through Google Play must use its own system (in-app payment), and a 30% commission will be charged. The policy, which had been applied to game apps, is now expanding to content areas such as music, video, and webtoons, sparking controversy over Google's abuse of market dominance.

This content was produced with the assistance of AI translation services.