US Trade Representative Targets South Korea’s ‘Network Usage Fee,’ Calling It an ‘Absurd Trade Barrier’

The U.S. Trade Representative (USTR) has once again voiced strong disapproval of South Korea's network usage fee policy, labeling it an "absurd trade barrier" that hinders American exporters. In a statement on social media platform X, the USTR highlighted that South Korea is unique in imposing such fees on internet service providers for traffic transmission, a practice not seen in any other nation. This criticism, which has been a recurring theme in U.S. trade discussions, frames the policy as a non-tariff barrier impeding the activities of American digital companies. The USTR included this issue in its latest National Trade Estimate (NTE) report, alongside other trade barriers faced by U.S. businesses.

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No country in the world imposes a network usage fee on its internet service providers for transmitting internet traffic. South Korea is the only exception.

The network usage fee policy in South Korea was introduced by telecommunication companies to share network management costs with content providers generating large amounts of traffic. Companies like Google, which accounts for a significant portion of domestic traffic, have resisted paying these fees, citing principles of network neutrality. This has led to accusations of unfair competition, particularly when compared to domestic content providers like Naver and Kakao, who do not face similar demands. The USTR's strong stance underscores the ongoing tension between U.S. tech giants and South Korean regulations, with the U.S. viewing these fees as discriminatory.

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The most absurd foreign trade barrier faced by U.S. exporters.

While the USTR cited several countries for various trade practices, South Korea was uniquely mentioned for its digital platform policies. Australia was the only other country cited for similar digital platform regulations, requiring video streaming services with over a million subscribers to invest a portion of their revenue in local content. In response, the South Korean presidential office, Cheong Wa Dae, asserted that the commitment to digital non-discrimination, as stated in a joint U.S.-South Korea statement, remains firm. They clarified that claims of U.S. companies facing discrimination regarding network usage fees or platform regulations are unfounded, as no mandatory law has been passed by the National Assembly.

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The claim that U.S. companies are being discriminated against in network usage fees and platform regulations is false, and no mandatory network usage fee law has been passed by the National Assembly.