Talks follow Seoul’s approval of map data exports that require processing on domestic servers

Cris Turner, Google’s vice president for government affairs and public policy, speaks at a Google Maps press briefing at the Google for Startups Campus in Seoul’s Gangnam district on Sept. 9. He outlined Google’s plans to expand cooperation with Korean partners such as Tmap Mobility, SPH, ARO InTech and Nicezindata as the company sought approval to export 1:5,000 Korean base map data overseas. (Newsis)
Cris Turner, Google’s vice president for government affairs and public policy, speaks at a Google Maps press briefing at the Google for Startups Campus in Seoul’s Gangnam district on Sept. 9. He outlined Google’s plans to expand cooperation with Korean partners such as Tmap Mobility, SPH, ARO InTech and Nicezindata as the company sought approval to export 1:5,000 Korean base map data overseas. (Newsis)

Google is reportedly in discussions with South Korean telecom operator LG Uplus over a data center partnership, according to industry sources cited by Korean media Thursday, as the company works to comply with conditions attached to Seoul's landmark approval of high-precision map data exports last week.

LG Uplus told The Korea Herald that there was nothing it could officially confirm. Google Korea did not respond to inquiries, and the Ministry of Land, Infrastructure and Transport said it had no information on a specific partner arrangement.

The reported talks follow a Feb. 27 decision by a government interagency review body to grant Google conditional access to Korea's 1:5,000-scale map data for the first time, ending a 19-year dispute. The data, which would enable turn-by-turn navigation according to Google, must be processed on domestic servers operated by a local partner before any government-reviewed information can be transferred abroad.

Google Maps currently cannot offer driving or walking navigation in South Korea.

The discussions reportedly center on a design-build-operate arrangement, in which LG Uplus would plan, construct and manage a facility built to Google's specifications. DBO deals are distinct from a company simply building its own facility: The local operator handles the infrastructure while the client uses it under terms set by contract.

Ownership and tax questions remain unresolved

Some Korean media reports have suggested that such a partnership would make Google the facility's legal owner, potentially subjecting the company to corporate and acquisition taxes it has long avoided in Korea.

But an industry official told The Korea Herald that ownership structures under DBO arrangements vary considerably depending on how capital is invested and equity is divided. "A DBO partnership would not automatically establish Google as the legal owner or create a taxable permanent establishment," the official said.

The tax question carries weight because of the wide gap between Google Korea's reported and estimated actual earnings in the country. Google Korea reported 386.9 billion won ($262 million) in revenue for 2024. But estimates presented to the National Assembly by Gachon University professor Jeon Seong-min place the company's actual Korean earnings, including YouTube, Play Store and advertising revenue routed through overseas entities, at between 4.8 trillion and 11.3 trillion won.

The domestic map services market is dominated by Naver Map, which held roughly 70 percent usage share as of early 2025, according to local app analytics firm Mobile Index. During a government consultation last March, Naver, Kakao and Tmap Mobility argued that granting Google the same base data they use would let the company replicate their core services without matching their local investment.

The interagency review body, for its part, recommended that Google contribute to Korea's spatial data industry and balanced regional growth.


mjh@heraldcorp.com