Issue Deregulation of public-sector cloud opens Korea's market to global and Chinese providers

Summary

KISDI warns that improvements to the Cloud Security Assurance Program and the easing of network separation rules could hinder the growth of Korea's own cloud industry. The changes make it easier for global cloud companies to enter the public market and raise the threat from Chinese cloud firms. The three largest global providers, Amazon Web Services, Microsoft and Google Cloud, have each obtained the low grade of the security certification and are stepping up entry into Korea's public cloud market. Alibaba Cloud is targeting Korea with AI and machine learning services for e-commerce built on big data accumulated in China, while Tencent Cloud is focusing on game cloud services. The issue for policy is how to balance openness in public cloud procurement against the competitiveness of domestic providers.