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A big fear is that Google Maps’ dominance could displace competitors like Naver and Kakao, if it was allowed into the country
This is the main and, at this point, only, real reason for the current situation I think. All the rest makes for a nice story, but politicians are fully in the hands of the Chaebol, this is what steers most decisions.
For example, Google could potentially replace local providers on platforms that rely on online maps – like Airbnb and Uber, which do work in South Korea but use Korean mapping tools. The number of apps relying on Korean mapping tools – like rideshare platform Kakao T – could dwindle with Google on the scene.
(emphasis mine)
Only partially true. Yes, you can use Uber's platform, but you won't end up in local Minsu's car. You'll end up with a licensed taxi driver without any special treatment that makes Uber sometimes a nice experience in other countries. Uber ended up in a same battle with the government and local special interest groups that they had to bend over and make so many concessions that it's uber, but just in name. I as an individual cannot sign up to Uber as a driver.
Airbnb is going the same way. I used to put up my place when travelling to make some extra cash, that's become impossible without going through so many legal hoops making it only worth my while doing it as a full time job.
Not saying those are bad things. Uber and Airbnb have destroyed a lot in other countries, so maybe letting Google do the same here is not really in anyone's interest other than Mr Eric Weng who struggles when travelling to South Korea~~