Despite persistent concerns over data security risks linked to China, many of South Korea’s top gaming companies continue to rely on cloud services from Chinese tech giant Tencent.
The issue has drawn fresh scrutiny after it emerged that AI chatbot DeepSeek had transferred user information to ByteDance, the operator of TikTok. At the same time, persistent allegations of backdoor access in Chinese-made IT devices, such as robot vacuum cleaners, have fueled public distrust. Adding to the unease is China’s Data Security Law, which requires domestic companies to hand over data to authorities upon request.
Tencent currently operates two data centers in Seoul, having launched its first in 2018 and a second in late 2020, according to industry officials. Tencent Cloud offers infrastructure services optimized for high-traffic sectors such as gaming, video streaming and e-commerce, targeting both South Korean and global clients.
Major South Korean game publishers — including Nexon, NCSOFT, Netmarble, Krafton, Wemade, Webzen and Shift Up — are using Tencent Cloud to operate their game servers, industry sources said. The platform is widely preferred in the gaming sector for its seamless connectivity with mainland China and relatively low data transfer fees, making it a practical choice for handling large-scale traffic.
A 2024 report by South Korea’s Ministry of Science and ICT showed Amazon Web Services (AWS) led the domestic cloud market in 2023 with a 60.2% share, followed by Microsoft at 24.0%, Naver at 20.5% and Google at 19.9%. Tencent Cloud’s market share was too small to be separately recorded.
Although South Korean game companies are not obligated to use Tencent Cloud when launching titles in China, Tencent’s expertise as a local publishing partner and its competitive pricing for internet connections have made it a popular option for navigating the Chinese market’s regulatory challenges.
Industry data shows Tencent Cloud charges around $0.0798 per gigabyte for data transfers within its Seoul region — more than 30% lower than AWS’s rate of $0.114 per gigabyte. For example, transferring one terabyte of data would cost about $81.70 with Tencent, compared with $116.70 using AWS.
“South Korean gaming companies also partner with Tencent to ensure stable access for Chinese users,” a cloud industry official said. “Linking Tencent’s domestic and Seoul data centers allows smoother handling of heavy traffic, and Tencent remains highly competitive on transmission fees and technical support.”
Nevertheless, security concerns have deepened since the U.S. Department of Defense in January designated Tencent as a “Chinese military company,” warning that firms on the list could be compelled to provide sensitive information to Beijing.
Tencent said its cloud services comply with international information security standards and have earned ISMS (Information Security Management System) certification from South Korea’s Korea Internet & Security Agency (KISA). However, the company has yet to obtain ISMS-P certification, which specifically governs the processing of personal information. Major domestic providers, including Naver Cloud, NHN Cloud and KT Cloud, hold both certifications.
“ISMS certification primarily reviews management systems to prevent data leaks caused by hacking or administrative errors,” said Yeom Heung-yeol, chair of the Korean Chief Privacy Officers Council. “ISMS-P, however, is far stricter, covering personal data collection, usage and third-party sharing. Considering China’s Data Security Law, it’s difficult to completely rule out the possibility of personal data being handed over to Chinese authorities — even if the servers are located in South Korea.”
Tencent said in a statement that Tencent Cloud complies with all applicable Korean laws and follows international best practices. The company added that it is not a military company in any sense of the word and is working with U.S. authorities to clarify the misunderstanding.
