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As others alluded to, South Korea has a strict law for mapping data, where more detailed data must be hosted domestically. The reason is probably to prevent North Korea, however ridiculous as that may seem (I guess South Korea has never heard of VPN), but probably also to protect the local businesses.

So popular navigation apps like Apple Maps and Google Maps cannot be used for driving directions, and their maps are typically far less detailed.

Of course, this should not necessarily prevent Find My network to function, but it certainly puts a damper.
The less detailed maps in Google Maps and Apple Maps are due to regulations in South Korea, but Find My is a different matter (because it has nothing to do with getting map data). In fact, Google and Microsoft already had services similar to Find My (like Google's Find My Device) in South Korea.
 
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I am traveling in South Korea now, and my find my network is working after the update to iOS 18.4. It was not in the release notes, but I can see the location of all my devices and air tags now
 
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