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SEOUL -- With no clear achievement in efforts to reduce its heavy reliance on foreign cloud services, South Korea is weighing advantages and disadvantages if it joins Europe's "Gaia-X" project to develop its independent cloud infrastructure that would help local providers compete with U.S. technology giants.

Led by Germany and France, an integrated Gaia-X platform will be officially founded this year. It is open to both European and foreign companies, as long as they follow rules on data sovereignty. Gaia-X would connect various cloud providers across Europe using open standards, in a way that allows businesses and consumers to move their data around freely.

Through official and unofficial channels, German officials have tried to draw South Korea into the Gaia-X project, according to the Ministry of SMEs and Startups. South Korea is the first country to commercialize 5G mobile telecom services as one of the world's most wired countries.

On German suggestions, SMEs and Startups Minister Park Young-sun is expected to deliver South Korea's position by the end of this month, ministry officials said. For its digital autonomy, South Korea has raised the need to establish a state-led cloud infrastructure, although many companies have already become addicted to fine services from U.S. companies such as Amazon, Google and Microsoft.

"While it is costly for individual companies to build cloud, using the cheaper foreign cloud is feared to expose sensitive information, such as corporate business secrets and know-how, abroad," Kim Jae-young, a professor at Korea University, said. "Gaia X aims to build its own secure data infrastructure managed in-house."

European companies are cautious about storing data in the cloud on non-European servers as American storage providers can be ordered under a 2018 law to hand over data held on their servers to local authorities, no matter where that information is physically stored. U.S. companies worry the European project will restrict data services along national borders.

Gaia-X could lower transaction costs by standardizing contracts and processes between cloud providers and customers. It would also help European companies develop algorithms and artificial intelligence without relying on foreign technology providers.

Lim Chang-won Reporter cwlim34@ajunews.com

Lim Chang-won cwlim34@ajunews.com

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