KT and Facebook presented conflicting views during a parliamentary interpellation session over who is responsible for barring contacts by Facebook users who subscribe with KT’s rival telecom service providers.

The episode occurred when Facebook Korea Senior Executive Vice President Park Dae-sung, who appeared at a session of the National Assembly Science, ICT, Broadcasting and Communications Committee on Oct. 13, said Facebook’s barring contacts to its server in Korea was done at the request of KT. 

Park made the remarks in reply from a question by Rep. Byun Jae-il of the Minju Party of Korea during the committee’s session. Facebook diverted the routing by SK Telecom and LG U+ subscribers to foreign services, including one in Hong Kong, instead of the server in Korea late last year and this past February. Facebook has its sole server at KT’s data center in Mok-dong, Seoul. 

Facebook President Cho Yong-beom also told the committee on Oct. 30 that the idea was one of many requests made by KT. While attending the session at that time, KT Chairman Hwang Chang-gyu disputed Park’s allegation. Hwang said the changing of approach routes at the cache server is Facebook’s authority, and KT had nothing to do with it. 

In a coincidence, Facebook sneakily took steps to restore SK Telecom and LG U+ subscribers’ connection with its service in Korea on Oct. 13 when the National Assembly began an interpellation of the government. The revelation of e-mails between KT and Facebook headquarters in the United States could reveal the truth behind the episode. 

The two companies exchanged e-mails over such issues of using Facebook’s server in Korea. An official with Facebook Korea said Facebook Korea President Cho and Senior Executive Vice President Park replied after reading inside reports on that matter, but Facebook refused to reveal such e-mails, citing problems related to revelations of personal information. 

Facebook President Cho Yong-beom testifies during a session of the National Assembly Science, ICT, Broadcasting and Communications Committee on Oct. 30.

Naver a Target of Severe Criticism over Parliamentary Audit 

Former Naver Board Chairman Lee Hae-jin became the subject of severe criticism from ruling and opposition party members sitting on the National Assembly National Policy Committee over Naver’s monopoly of the Korean online advertising market on Oct. 30 and Oct. 31. “Naver is blocking Google’s reign over the Internet advertising market,” Lee, now global investment officer (GIO), said Google Korea, is drawing less attention due to its low market share, he testified during his parliamentary hearing. 

Ruling and opposition party members sitting on the committee lashed out at Naver for abusing its monopoly power to control the Korean on-lime advertising market, incurring huge damages to small merchants and consumers.