An SK spokeswoman said on Friday that the South Korean Internet service provider S.K. Broadband has sued Netflix (NFLX.O) to recover costs incurred due to higher network traffic and maintenance work as a result of a surge in viewers to the U.S. firm's content.

The decision comes after a Seoul court ruled that Netflix must "reasonably" compensate the internet service provider for network usage. Several South Korean M.P.s have spoken out against video providers who do not pay for network usage despite generating massive traffic.

Netflix stated that it would investigate S.K. Broadband's claim, seek communication and explore ways to cooperate with S.K. Broadband in the meantime to ensure that users are not impacted.

Netflix's status as the country's second-largest data traffic generator after Google's YouTube has been highlighted by the popularity of the hit series "Squid Game" and other offerings, but the two are the only ones not paying network usage fees, which other content providers such as Amazon, Apple, and Facebook are paying, according to S.K.

Netflix's data traffic handled by S.K. increased by 24 times from May 2018 to 1.2 trillion bits of data processed per second in September, according to S.K., thanks to the success of various Korean Netflix productions such as "Squid Game" and "D.P."

Since Netflix began using S.K.'s dedicated line in 2018 to distribute increasingly larger volumes of data-heavy, high-definition video content to consumers in Korea from servers in Japan and Hong Kong, SK Broadband announced it had filed a lawsuit against the company.

Last year, Netflix filed its case to determine if it was obligated to pay S.K. for network usage, contending that Netflix's responsibility ends with generating and making material available. According to court documents, S.K.'s expenses were incurred while fulfilling contractual commitments to Internet customers, and delivery in the Internet world is "free of charge as a principle."

However, in June, the Seoul Central District Court ruled against Netflix, stating that S.K. provides "a service provided at a cost" and that it is "reasonable" for Netflix to be "obligated to provide something in return for the service."

According to the court statement, S.K. predicted that Netflix would have to pay a network usage fee of around 27.2 billion won ($22.9 million) in 2020 alone.

According to court documents, Netflix has filed an appeal against the decision, with new proceedings set to begin in late December.

Netflix stated in a statement on Wednesday that its investments in South Korea resulted in the creation of around 16,000 jobs, with an economic impact of approximately 5.6 trillion won.

According to ruling party legislator Kim Sang-hee, foreign content providers accounted for 78.5 percent of South Korea's top 10 data traffic generators, up from 73.1 percent a year ago, with "Google-YouTube and Netflix that account for the majority turning a blind eye to network usage fees."

Netflix has been paying a charge to broadband provider Comcast Corp (CMCSA.O) for better streaming speeds in the United States for over seven years.