South Korea’s Ministry of Science and ICT is facing a backlash for allowing foreign tech giants Amazon and Microsoft to penetrate the country’s public sector cloud computing service market.
Domestic companies such as KT, Naver, and NHN have expressed concerns over foreign firms dominating the public cloud market since the ministry took steps to ease regulations on the security certification for cloud systems.
The ministry will revise guidelines on security certifications of cloud computing services to introduce a cloud security assurance program (CSAP) classification system.
Under the proposed guidelines, companies that do not physically separate their cloud servers for the public and private sectors, such as Amazon and Microsoft, will also be able to provide cloud computing services to the public sector, if personal information and other confidential data are not involved.
Amazon, Microsoft, and other US tech firms have not established cloud servers for the public sector, allowing KT, Naver, NHN, and other domestic cloud service providers to dominate the public cloud market here, despite the dominance of foreign companies in the private sector.
Data compiled by the Fair Trade Commission showed that AWS has grown to account for nearly a 70 percent share of Korea's cloud computing service market over the past few years, while Microsoft accounts for around 10 percent. Google and Naver have vied for third place.
According to an official of a local cloud computing company, US firms can afford to offer excessively lower prices to win in competition with Korean companies.
Most developed countries have restricted foreign companies from providing cloud computing services to the public sector.


Dina Powell McCormick Resigns From Meta Board After Eight Months, May Take Advisory Role
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand
MetaX IPO Soars as China’s AI Chip Stocks Ignite Investor Frenzy
Jared Isaacman Confirmed as NASA Administrator, Becomes 15th Leader of U.S. Space Agency
Nike Shares Slide as Margins Fall Again Amid China Slump and Costly Turnaround
Nvidia Weighs Expanding H200 AI Chip Production as China Demand Surges
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes
Citi Appoints Ryan Ellis as Head of Markets Sales for Australia and New Zealand
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike
Republicans Raise National Security Concerns Over Intel’s Testing of China-Linked Chipmaking Tools
Oracle Stock Slides After Blue Owl Exit Report, Company Says Michigan Data Center Talks Remain on Track
Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets
OpenAI Explores Massive Funding Round at $750 Billion Valuation
EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 



