South Korea ponders YouTube tax
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Louise Duffy
| 19 August 2019

The South Korean government is considering imposing taxes on over-the-top (OTT) service providers such as YouTube.

The country’s Ministry of Science and ICT has requested the Korea Legislation Research Institute to investigate how digital taxes could be applicable to the South Korean market, reports Business Korea.

As a result the government could reform the system, which could see the likes of YouTube and Netflix being made to make contributions towards the Broadcasting Development Fund, which broadcasters make annual payments to, for the advancement of the nation's broadcasting and communications industries.

Currently the payment is equivalent to 2% to 4% of their ad sales. As more ads move towards the OTT market OTT market there has been criticism that OTT service providers should share the tax burden.

In October 2018 the government tabled an amendment to the Framework Act on Broadcasting Communications Development and the bill is currently pending in the standing committee.
Commenting on its move, the committee said: “Reverse discrimination against South Korean service providers will be exacerbated unless executability is ensured in relation to the global players dominating the local OTT service market.”