[2021 National Audit] Kim Kyung-hoon, Google Korea CEO, "Regret over Ban on Forced In-App Payments but Business Model Change"

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] Google Korea announced that it will change its business model following the passage of the amendment to the Telecommunications Business Act, known as the 'Google Gapjil Prevention Act' or the 'In-App Payment Mandate Prohibition Act,' in the National Assembly.

The core of the amendment is to prohibit app market operators from abusing their position to force mobile content providers to use a specific payment method.

At the National Assembly Science, Technology, Information and Broadcasting Committee's audit on the 5th, Kim Kyunghoon, President of Google Korea, who appeared as a witness, said regarding the passage of the bill, "There are some regrets, but we respect the law."

Regarding the possibility of changing the business model, he said, "Since it violates the law, we are considering compliance," and when asked if changing it is the right thing to do, he replied, "Yes." Concerning concerns about user disadvantages due to the business model change, he said, "We always prioritize users." Kim explained that they are working with the responsible team to submit an implementation plan related to the amendment by the 11th of this month.

In response to criticism that the domestic agent system for foreign companies is poorly operated, Kim said, "I understand that we selected the agent who can perform the agency duties best according to the law. If there are any shortcomings, we will supplement them."

At the audit, Yoon Goo, CEO of Apple Korea, and Jung Ki-hyun, CEO of Facebook Korea, also expressed their intention to consult with relevant departments and improve the domestic agent system.

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