Naver and Kakao are asking Netflix to pay them for the use of their network so it can provide service to its subscribers in South Korea. The local Korean companies want the American streaming giant to pay for internet service providers (ISPs) for the network usage created by its popular platforms.
"Because we are paying for the bandwidth usage, overseas companies that use more data and network resources should pay (ISPs) an equal amount," Lee Hae Jin, Naver founder and chief investment officer told lawmakers during the annual National Assembly audit conference that was held on Thursday, Oct. 21. "Only after this will fair competition follow."
As mentioned by The Korea Times, both Naver and Kakao have been shelling out between ₩70 billion and ₩100 billion to ISPs for the use of their bandwidth. Kim Beom Soo, the founder of Kakao, was said to have confirmed that it has been paying ISPs worth billions every year.
The Kakao chief said that he would like the lawmakers to do something to ensure fair competition. In response to the request of Kakao and Naver to have Netflix pay for network usage, Han Sang Hyuck, the chairman of the Korea Communications Commission (KCC), said that he would try to look for ways to put a binding legal ground in a place that will force foreign content providers like Netflix to pay ISPs for the bandwidth they are using in the country for their services.
On the part of Netflix and other streaming service providers, they think that the consumers have already compensated the companies for ISPs when they pay their monthly telecom bills. Thus, the request for payment over network usage is not necessary anymore.
However, telecom firms do not think this way as they said that streaming service providers must compensate them more because their services bring about heavy data traffic over their networks. As for Netflix, it explained that any large payments to ISPs could discriminate against them.
Meanwhile, Netflix had also been sued by SK Broadband a few weeks ago, and the case is also about the same issues on fees. Korea Joongang Daily reported that SK Broadband countersued the streaming service company as their conflict over the network usage fees escalated.
The telecom network firmly stated that Netflix should pay for the maintenance cost of traffic by its customers. The countersuit is related to the lawsuit filed by Netflix in April 2020, where it asked the local court to declare that it has no obligation to pay SK Broadband for network usage fees.


PBOC Scraps FX Risk Reserves to Curb Rapid Yuan Appreciation
Ecuador Raises Tariffs on Colombian Imports to 50% Amid Border Security Dispute
Oil Prices Steady as US-Iran Nuclear Talks and Rising Crude Inventories Shape Market Outlook
Coupang Reports Q4 Loss After Data Breach, Revenue Misses Estimates
Lynas Rare Earths Shares Surge on Strong Half-Year Earnings and Rising Global Demand
Australian Dollar Rallies on Hawkish RBA Outlook; Yen Slips as BOJ Faces Political Pressure
Nintendo Share Sale: MUFG and Bank of Kyoto to Sell Stakes in Strategic Unwinding
Netflix Stock Jumps 14% After Exiting Warner Bros Deal as Paramount Seals $110 Billion Acquisition
Trump Orders Federal Agencies to Halt Use of Anthropic AI Technology
Germany and China Reaffirm Open Trade and Strategic Partnership in Landmark Beijing Visit
BlueScope Steel Shares Drop After Rejecting Revised A$15 Billion Takeover Bid
FCC Approves Charter Communications’ $34.5 Billion Acquisition of Cox Communications
Pentagon Weighs Supply Chain Risk Designation for Anthropic Over Claude AI Use
Greg Abel’s First Berkshire Hathaway Shareholder Letter Signals Continuity, Caution, and Capital Discipline
Panama Investigates CK Hutchison’s Port Unit After Court Voids Canal Contracts
Hyundai Motor Group to Invest $6.26 Billion in AI Data Center, Robotics and Renewable Energy Projects in South Korea
Snowflake Forecasts Strong Fiscal 2027 Revenue Growth as Enterprise AI Demand Surges 



