80% to telcos, 20% as tax to gov. You virtually can't get to the 50 million fairly affluent Koreans without going through the network of Korea Telecom (largest in landline,) SK Telecom (largest in wireless,) or LG. Economists call this a "terminating monopoly" and like all monopolies it can be used to extract more from customers.
The government has now proposed to charge what one source estimates as $0.026/gigabyte on the traffic they receive, reviving a "sender pays" system. I can't find the primary sources, all of which are in Korean. Google translate works well if I could find a webpage or document. Help appreciated. A charge at that level is totally unrelated to costs, being several times higher than content delivery networks charge for a comparable service. Much of the impact will be on foreign companies, and the Korea regulations provide some benefits to local companies. From France and Germany to Korea and China, "tax the Americans" is a very popular cry.Add a comment