Google in Talks with LG Uplus for Data Center Partnership After Map Data Export Approval
Google is reportedly discussing a potential data center partnership with South Korean telecom giant LG Uplus, according to industry sources cited in Korean media reports. This follows Seoul’s recent approval of Google’s request to export high-precision map data, subject to specific conditions.
When contacted by The Korea Herald, LG Uplus stated they could not officially confirm the ongoing discussions. Google Korea did not respond to requests for comment. Similarly, the Ministry of Land, Infrastructure and Transport indicated they had no information regarding any specific partner arrangement.
These reported talks emerge after the government’s interagency review body granted Google conditional access to Korea’s 1:5,000-scale map data on February 27, resolving a 19-year-long dispute. This access, which Google states will enable turn-by-turn navigation, mandates that the data be processed on domestic servers managed by a local partner before any government-reviewed information is transferred abroad.
Currently, Google Maps does not offer driving or walking navigation functionalities within South Korea.
The discussions are reportedly centered on a design-build-operate (DBO) agreement. Under this arrangement, LG Uplus would be responsible for planning, constructing, and managing a data center facility tailored to Google’s specifications. DBO deals differ from companies constructing their own facilities, as the local operator handles the infrastructure while the client utilizes it under a contractual agreement.
Ownership, Tax Implications, and Market Dynamics Under Scrutiny
Some Korean media outlets have suggested that a partnership of this nature could designate Google as the legal owner of the facility. This could potentially expose the company to corporate and acquisition taxes, which it has historically avoided in South Korea.
However, an industry official clarified to The Korea Herald that ownership structures under DBO agreements can vary significantly depending on capital investment and equity distribution. “A DBO partnership would not automatically establish Google as the legal owner or create a taxable permanent establishment,” the official stated.
The tax implications are a significant concern due to the disparity between Google Korea’s reported earnings and estimated actual earnings within the country. Google Korea reported a revenue of 386.9 billion won ($262 million) for 2024. However, Professor Jeon Seong-min of Gachon University, in a presentation to the National Assembly, estimated Google’s actual Korean earnings – including revenue from YouTube, the Play Store, and advertising routed through overseas entities – to be between 4.8 trillion and 11.3 trillion won.
The domestic map services market is currently dominated by Naver Map, which held approximately 70 percent of the 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 access to the same base data would allow them to replicate their core services without matching their local investments.
The interagency review body recommended that Google contribute to Korea’s spatial data industry and promote balanced regional growth.
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