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Global 500

Why South Korea Just Turned Down a Request from Google

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Reuters
Reuters
and
Michelle Toh
Michelle Toh
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By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
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November 18, 2016, 4:14 AM ET
Google Chairman Eric Schmidt Launches Nexus 7 Tablet Computer In South Korea
The shadow of a journalist is cast on a screen with the Google Inc. logo at a news conference in Seoul, South Korea, on Thursday, Sept. 27, 2012. Google Inc. will start selling its Nexus 7 tablet in South Korea on Oct. 7 to meet demand for mobile devices on the home turf of Samsung Electronics Co., the world’s biggest seller of smartphones. Photographer: SeongJoon Cho/Bloomberg via Getty ImagesSeongJoon Cho/Bloomberg via Getty Images
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South Korea said on Friday it has rejected Google’s latest request for permission to use government mapping data in servers outside the country, citing security issues with North Korea.

Google (GOOGL), an Alphabet company, has said it needs to use the data on servers worldwide to enable services that would give walking and driving directions in South Korea.

“We’re disappointed by this decision,” Google spokesman Taj Meadows said in a statement, adding that the company remains hopeful it will be able to provide people in Korea with the full suite of Google Maps services in the future.

South Korea, whose 1950-53 war with North Korea ended without a peace treaty, argues that if it allowed such data to leave the country, the locations of military facilities and other sensitive sites could be revealed.

For more on national security and North Korea, watch Fortune’s video:

The government could grant permission if Google removes images of sensitive sites on its satellite imaging services, an official at the body in charge of mapping data has previously said.

But Google has rejected that condition, saying the information is widely available through satellite images that can be purchased freely.

The land ministry said it would reconsider if Google changes its position.

Separately, Google is under scrutiny in South Korea, with the antitrust regulator examining whether the U.S. firm’s agreements with handset manufacturers on the Android mobile operating system limits market competition.

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