The Office of the U.S. Trade Representative has publicly criticized South Korea’s network usage fee policy, raising pressure in digital trade. Industry officials and experts in South Korea warn the dispute could expand beyond telecom policy into demands for broader data access, a key resource in the AI era.
According to the industry on April 28, the USTR posted on X on April 27 (local time) that “no country in the world imposes network usage fees for traffic transmission by its internet service providers (ISPs). Korea is the only exception.” The post escalated what had previously been raised mainly in reports, framing South Korea’s policy as a major non-tariff trade barrier.
The issue emerged in earnest in the 2023 National Trade Estimate (NTE) report. In 2024, it broadened into wider digital regulation and became a trade issue, and in 2025 it was cited as a core non-tariff barrier. In 2026, the USTR has widened its focus further, also raising concerns that U.S. cloud service providers (CSPs) were excluded from AI infrastructure projects.
The United States argues the policy imposes discriminatory costs on foreign companies and restricts market access. South Korea’s telecom industry counters that the structure is unfair because global platforms that generate massive traffic do not share the cost of network investment.
Ahn Jeong-sang, an adjunct professor of communication at Chung-Ang University, said network usage fees reflect a basic cost-sharing principle given rising data use and potential network overload. He said a system in which big tech “effectively uses networks for free” and then uses its financial strength to expand dominance in AI technology could weigh on the growth of South Korea’s AI industry.
Some also caution that trade pressure could lead to demands for broader data opening. Because data is central to AI model training and industrial competitiveness, expanded access could weaken the competitive edge of domestic companies, they say.
Bong Kang-ho, a researcher at the Software Policy & Research Institute, said sharing data with big tech can improve connectivity with global services. But he warned that opening data could weaken domestic AI firms’ competitive advantage based on proprietary data and reduce differentiating factors in South Korea’s AI industry.
The European Union previously considered introducing network usage fees but effectively withdrew the idea after concluding it was not feasible. Still, disputes over cost-sharing between telecom companies and big tech have continued. In January, the EU moved to pursue a system under the “Digital Networks Act (DNA)” in which regulators would mediate.
Experts said South Korea needs an institutional response, not just a policy debate. Kim Yong-hee, a professor of business administration at Sun Moon University, said South Korea was not sufficiently prepared for the era of global services and has struggled to respond effectively to USTR pressure. He said the National Assembly should hear from stakeholders and elevate practical improvement measures as an agenda item.
Ahn said a phased approach is needed: prioritize voluntary negotiations between companies, but apply limited regulation only if no agreement is reached within a set period or if one side refuses unilaterally.
* This article has been translated by AI.
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