Unprepared Cloud Services: Passage of Cloud Computing Act Posing Concerns for Korean Service Providers | BusinessKorea

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The South Korean government developed PaaS-TA in order to address software service providers’ repeating their development processes for services on different platforms.
The South Korean government developed PaaS-TA in order to address software service providers’ repeating their development processes for services on different platforms.
SEOUL, SOUTH KOREA
17 March 2015 - 4:00pm
Cho Jin-young

According to the Act on the Development of Cloud Computing and Protection of Users that passed the plenary session of the National Assembly earlier this year, public institutions in Korea have to raise the ratio of the use of cloud computing services provided by private companies to at least 15 percent by 2017. Before the passage of the bill, cloud computing in such institutions was restricted for security reasons.

Korean cloud computing companies are anxious despite the passage of the bill. This is because foreign cloud computing service providers supplied a lot of their products and solutions to both the public and private sectors during the two years when the bill remained pending in the National Assembly, whereas the Korean companies supplied nothing to the public sector and only a few to the private sector.

Under the circumstances, those who participated in the discussion session hosted by the Ministry of Science, ICT & Future Planning on March 10 demanded that the enforcement ordinance and bylaws be modified in favor of domestic companies because the act, tabled two years ago, cannot reflect the current situation in the industry. 

“As of now, it is foreign companies that are likely to benefit from the bill,” said an industry insider, adding, “Flexible measures are required regarding the introduction and utilization of cloud computing services in the public sector, because the degree of dependence on cloud computing services is higher than that on software programs.”

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