Google in talks with LG Uplus for S Korea data center: sources

Google is reportedly in talks with LG Uplus over a data center partnership to meet conditions tied to Seoul’s approval of 1:5,000-scale map data exports, according to industry sources cited by Korean media.

LG Uplus did not confirm the talks, while Google Korea and the Ministry offered no comment.

Google received conditional access requiring map data to be processed on domestic servers before export.

Google Maps currently cannot provide driving or walking navigation in South Korea; reports say this is due to the map data restrictions.

Reports say talks cover a design-build-operate deal, according to Korean media, where LG Uplus would build and run a facility to Google’s specifications while Google uses it under contract.

Google Korea earned 386.9 billion won (US$260.81 million) in 2024, while estimates including overseas revenue range from 4.8–11.3 trillion won (US$3.23 – US$7.61 billion).

🔗 Source: Korea Herald

🧠 Food for thought

Implications, context, and why it matters.

This data center deal ties into a long-running tax dispute

The talks with a local partner combine compliance with South Korea’s map data rules and a tax fight over where Google records revenue and taxable presence 1.
Google Korea reported 2024 revenue of 386.9 billion won, while estimates put Korean earnings as high as 11.3 trillion won after counting YouTube, Play Store, and ad sales booked through overseas entities 2.
Critics say Google has limited Korean corporate taxes by avoiding a taxable “permanent establishment,” which usually means a fixed local place of business that triggers corporate tax duties; some analysts connect that outcome to the lack of local servers 1.
Under a design-build-operate setup, LG Uplus would plan, build, and run a facility to Google’s specifications, meeting the condition that reviewed map data gets processed on domestic servers run by a local partner while possibly avoiding a taxable permanent establishment; ownership and tax outcomes depend on the deal structure 2.

Full Google Maps in Korea could squeeze local leaders

A full-featured Google Maps may weaken local services such as Naver and Kakao, which gained ground from Google’s limits in Korea 3.
Naver shares dropped 2.3% after the government conditionally approved map data export, which suggests investor worry about tougher competition 4.
Specialists warn Google might use its scale to cut prices, take share, then lift prices later 4.
Another concern involves dependency, where logistics companies and government geographic information systems could lean on Google’s platform, leaving essential infrastructure under foreign control 4.