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| Google Korea Country Manager Kim Kyoung-hoon, left, takes an oath during the Science, ICT, Broadcasting and Communications Committee's audit of the Korea Communications Commission at the National Assembly building in Seoul, Oct. 21. Yonhap |
By Park Jae-hyuk
Google Korea Country Director Kim Kyoung-hoon was referred to prosecutors late on Monday after being accused of perjury during last week's National Assembly audit.
When Kim was called last Friday as a witness to testify at the Science, ICT, Broadcasting and Communications Committee's audit of the Korea Communications Commission, Kim drew criticism from lawmakers for avoiding to comment on Google's revenues in Korea and the company's stance on proposed bills for network usage fees.
When both ruling and opposition lawmakers suspected him of making false statements, Kim said, "I will check the matter," and "I'm not well aware of the issue."
Rep. Park Chan-dae of the main opposition Democratic Party of Korea (DPK) reprimanded Kim, asking him why he decided to appear at the National Assembly audit without any knowledge about his company. Rep. Jung Chung-rae of the DPK, who chairs the science committee, described Kim's remarks as being "sly" and "infuriating."
The country manager was especially criticized for his response to his company's alleged tax evasion.
Rep. Kim Young-joo of the DPK pointed out that Google Korea posted 200 billion won ($140 million) in sales during fiscal years 2020 and 2021, even though data from Korea's seven credit card issuers showed the tech firm's local subsidiary earned 2 trillion won annually through its Google Play mobile app store.
In response, Kim explained that Google Play's earnings in Korea are collected by Google Asia Pacific located in Singapore.
"We make our profits in Korea from ads and sales of hardware," he said.
The Act on Testimony and Appraisal before the National Assembly specifies that if a witness who took an oath makes a false statement, he or she can face up to 10 years in prison.
In addition, prosecutors must conclude the investigation within two months after an accusation and the prosecutor general has to submit a written report to the National Assembly immediately after finishing the investigation.
Lawmakers had also planned to refer Netflix Services Korea Director Chung Kyo-hwa to prosecutors for her alleged perjury, because she answered that Netflix does not pay access fees to U.S. internet service providers.
Chung, who appeared at the National Assembly audit as a witness with the Google Korea head, however, was able to avoid the allegation, as she corrected her response later.
"As I did not listen to the question carefully, I could not give a correct answer," she said. "Netflix has paid internet access fees to U.S. internet service providers."
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