Twenty Years of Network Usage Fees in South Korea

Abstract South Korea’s broadband policy, long recognized as world-leading, is now debated for network usage fees. This article examines the country’s framework, which mandates shared cost responsibility between internet service providers and content providers and analyzes the economic and regulatory implications. Findings suggest that network usage fees, which have been paid by many Korean parties since 2005, have not harmed the Korean content market or end users. Rather, fees facilitate broadband investment, deployment, and adoption and contribute to South Korea’s status as a leading broadband nation. It finds that network usage fees are reasonable tools for supporting broadband infrastructure policy goals.