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(LEAD) Google to accelerate cloud business push in S. Korea

All Headlines 16:42 September 25, 2019

(ATTN: ADDS more info in last 4 paras)
By Kim Han-joo

SEOUL, Sept. 25 (Yonhap) -- Global IT giant Google Inc. aims to rev up its cloud business in South Korea by opening its first data center in the country early next year, company officials said Wednesday.

It will be Google Cloud's eighth data center in the Asia Pacific region, and it wants local companies to expand globally and multinational customers to do business in the country, they said.

"Google Cloud has focused on four industries -- finance, health care, retail and manufacturing -- globally," Yang Seung-do, an official in charge of Google's cloud business in South Korea, told reporters in Seoul. "Our goal in the country is to efficiently use Google Cloud in various industries instead of focusing on just one."

Among the lineup of major customers is the country's largest mobile gaming firm, Netmarble Games, which uses Google Cloud to support new game development and to manage infrastructure, according to the global tech giant.

Amid rising demand for cloud services from various sectors, Google's archrivals -- Amazon Inc. and Microsoft Inc. -- have also beefed up their technology skills and diversified their business models.

Amy Krishnamohan, Product Marketing Manager at Google, said that what sets Google apart from other players is its world-class security and low latency.

Google has invested in 14 subsea cable systems with a total of approximately 112,000 kilometers of cable, she said.

"Google has the knowhow to provide the service around the clock. It is vital that the service is around the clock," she said. "Google has the knowhow to do so."

According to market researcher Gartner, South Korea's cloud industry is valued at US$1.9 billion, with its compound annual growth rate expected to reach 19 percent by 2022.

In terms of the market share, Amazon Web Services comes in first place, followed by Microsoft's Azure, Google, and Oracle Inc., Gartner said.

Local companies have also belatedly jumped into the burgeoning market, including Samsung Group and LG Group, South Korea's two largest conglomerates.

The country's dominant internet portal operator, Naver Corp., also has its cloud affiliate, Naver Business Platform, to provide various cloud services.

Yang Seung-do, an official in charge of Google Inc.'s cloud business in South Korea, speaks to reporters on Sept. 25, 2019, in this photo provided by Google. (PHOTO NOT FOR SALE) (Yonhap)


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