Act nº 10166, Mar. 22, 2010. Telecommunications Business Act (Amended by Act nº 10656, May 19, 2011, Act nº 11201, Jan. 17, 2012).

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purposes)

The purpose of this Act is to contribute to the promotion of public welfare by encouraging sound development of the telecommunications business and ensuring convenience to the users of the telecommunications business through proper management of such business and efficient operation of telecommunications.

Article 2 (Definitions)

The terms used in this Act shall be defined as follows: (Amended by Act nº 10656, May 19, 2011)

1. The term “telecommunications” means any transmission or reception of signs, signals, writing, sounds and images by wire, radio, optics or other electromagnetic systems;

2. The term “telecommunications equipment and facilities” means equipment and facilities necessary for telecommunications, such as machinery, appliances, lines, etc.;

3. The term “telecommunications line equipment and facilities” means equipment and facilities which constitute communications channels between transmission and reception points for telecommunications among the telecommunications equipment and facilities, such as the transmission and line equipment and facilities, exchange facilities installed as one body of the transmission and line equipment and facilities, and all facilities attached thereto;

4. The term “commercial telecommunications equipment and facilities” means telecommunications equipment and facilities to be provided for tele communications business;

5. The term “private telecommunications equipment and facilities” means telecommunications equipment and facilities, other than commercial telecommunications equipment and facilities, installed by an individual to be used for his/her own telecommunications;

6. The term “telecommunications services” means services to advocate a third party’s communications through telecommunications equipment and facilities or to provide telecommunications equipment and facilities for a third party’s communications;

7. The term “telecommunications business” means any business which provides telecommunications services;

8. The term “telecommunications business operator” means an entity that provides telecommunications services upon obtaining a license, or completing registration or reporting (including cases of exemption from reporting) under this Act;

9. The term “user” means a person who concludes a contract for the use of telecommunications services with a telecommunications business operator in order to procure telecommunications services;

10. The term “pervasive services” means basic telecommunications services which any user may use at reasonable fees regardless of time and place;

11. The term “common telecommunications services” means telecommunications services for transmitting or receiving sounds, data, images, etc. without any change in the form or contents thereof and to lease telecommunications line equipment and facilities for the use of transmission or reception of sounds, data, images, etc., such as telephone services or Internet services: Provided, That this shall not include telecommunications services (referring to detailed independent services among telecommunications services under subparagraph 6; hereinafter the same shall apply) determined and publicly announced by the Korea Communications Commission;

12. The term “value-added telecommunications services” means telecommunications services, other than common telecommunications services:

13. The term “special value-added telecommunications services” shall be as follows:

(a) Value-added telecommunications services provided by a special on-line service provider under Article 104 of the Copyright Act;

(b) Other value-added telecommunications services for the purpose of storing and transmitting, or transmitting information under subparagraph 1 of Article 3 of the Framework Act on National Informatization by using computers among others.

Article 3 (Duties to Provide Services, etc.)

(1) No telecommunications business operator may refuse to provide any telecommunications service, without justifiable grounds.

(2) A telecommunications business operator shall perform his/her business in a fair, swift and accurate manner.

(3) Fees for telecommunications services shall be reasonably determined so as to ensure the efficient development of the telecommunications business and to provide users with convenient and various telecommunications services fairly and inexpensively.

Article 4 (Provision, etc. of Pervasive Services)

(1) Each telecommunications business operator shall have obligations to provide pervasive services or to compensate for losses incurred therefrom.

(2) Notwithstanding paragraph (1), the Korea Communications Commission may release any of the following telecommunications business operators from the obligations mentioned under paragraph (1):

1. A telecommunications business operator, prescribed by Presidential Decree, for whom the imposition of obligations under paragraph (1) is deemed inadequate in consideration of the nature of telecommunications services;

2. A telecommunications business operator whose profits from telecommunications services is not more than the amounts determined by Presidential Decree within 1/100 of the total profits from all telecommunications services.

(3) Details of pervasive services shall be determined by Presidential Decree in consideration of the following matters:

1. Level of the development of information and communications technology;

2. Level of the dissemination of telecommunications services;

3. Public interest and safety;

4. Promotion of social welfare;

5. Acceleration of informatization.

(4) In order to provide pervasive services in an efficient and stable manner, the Korea Communications Commission may, according to standards and procedures prescribed by Presidential Decree, designate a telecommunications business operator who provides pervasive services, taking into account the scope, quality and level of fees of pervasive services, and the technical capability of the telecommunications business operator.

(5) The Korea Communications Commission may distribute the burden of compensation for losses incurring from providing pervasive services to telecommunications business operators, based on their profits, in accordance with the methods and procedures prescribed by Presidential Decree.

CHAPTER II.- TELECOMMUNICATIONS BUSINESS

SECTION 1.- General Provisions

Article 5 (Classification, etc. of Telecommunications Businesses)

(1) The telecommunications business shall be classified into the common telecommunications business, special category telecommunications business and value-added telecommunications business.

(2) The common telecommunications business shall install telecommunications line equipment and facilities, and thereby provide telecommunications services.

(3) The special category telecommunications business shall be as follows:

1. Business that provides common telecommunications services by using telecommunications line equipment and facilities, etc. of a person who has obtained a license for the common telecommunications business under Article 6 (hereinafter referred to as “common telecommunications business“);

2. Business that installs telecommunications equipment and facilities in the premises prescribed by Presidential Decree, and provides telecommunications services therein by using such equipment and facilities.

(4) The value-added telecommunications business shall provide value-added telecommunications services.

SECTION 2.- Common Telecommunications Business

Article 6 (Licenses, etc. for Common Telecommunications Business)

(1) A person who intends to operate the common telecommunications business shall obtain a license from the Korea Communications Commission.

(2) When granting a license under paragraph (1), the Korea Communications Commission shall comprehensively examine the following matters:

1. Financial capability to implement plans for providing common telecommunications services;

2. Technical capability to implement plans for providing common telecommunications services;

3. Adequacy of plans for protecting users;

4. Other matters prescribed by Presidential Decree concerning capabilities necessary for the stable provision of common telecommunications services.

(3) The Korea Communications Commission shall establish detailed criteria for examination by subject matter to be examined, under paragraph (2), a period for granting licenses and guidelines for application for licenses, and publicly announce them.

(4) When granting a license for the common telecommunications business under paragraph (1), the Korea Communications Commission may place necessary conditions to facilitate fair competition, protect users, improve service quality and efficiently utilize information and telecommunications resources. In such cases, details of such conditions shall be published on the Official Gazette or posted on the web site.

(5) A license under paragraph (1) shall be granted only to a corporation.

(6) Procedures for granting licenses under paragraph (1) and other necessary matters shall be determined by Presidential Decree.

 Article 7 (Grounds for Disqualification of Licenses)

No person falling under any of the following subparagraphs shall be entitled to obtain a license for the common telecommunications business under Article 6:

1. The State or local governments;

2. Foreign governments or foreign corporations;

3. Corporations, stocks of which are held by foreign governments or foreigners in excess of the limitation on stock holdings referred to in Article 8 (1).

Article 8 (Limitation on Stock Holdings by Foreign Governments or Foreigners)

(1) A foreign government or foreigner may hold stocks of the common telecommunications business (excluding non-voting stocks under Article 370 of the Commercial Act, but including voting stock equivalents, such as security depositary receipts, and equity shares; hereinafter the same shall apply) within 49/100 of the total number of outstanding stocks of the common telecommunications business, when aggregating all of those held by foreign governments or foreigners.

(2) Where a foreign government or foreigner (including a specially related person under Article 9 (1) 1 of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) holds 15/100 or more of the total number of outstanding stocks of a corporation and is the largest shareholder under Article 9 (1) 1 of the Financial Investment Services and Capital Markets Act, such corporation shall be deemed as a foreign corporation (hereinafter referred to as “deemed-foreign corporation“).

(3) Any corporation which holds less than 1/100 of the total number of outstanding stocks of the common telecommunications business may not be deemed as a foreign corporation, even if it satisfies the requirements under paragraph (2).

Article 9 (Grounds for Disqualification as Executives)

(1) Any person falling under any of the following subparagraphs shall be disqualified as an executive of any common telecommunications business operator:

1. A minor, or an incompetent or quasi-incompetent person;

2. A person who is not yet reinstated after having been declared bankrupt by a court;

3. A person in whose case three years have not passed since he/she had been sentenced to imprisonment without prison labor or heavier punishment for a violation of this Act, the Framework Act on Telecommunications, the Radio Waves Act or the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. (excluding matters not directly related to the telecommunications business; hereinafter referred to as “this Act, etc.”), and the execution of the punishment was completed (including cases that the execution is deemed to have been completed) or he/she was exempted from the enforcement of the sentence;

4. A person who was sentenced to a suspended execution of imprisonment without prison labor or heavier punishment for a violation of this Act, etc. and is still under the period of suspension;

5. A person in whose case one year has not passed since he/she had been sentenced to a fine for a violation of this Act, etc.;

6. A person in whose case three years have not passed since he/she has been subject to a disposition to fully or partially cancel his/her license in accordance with Article 20 (1), a disposition to fully or partially revoke his/her registration in accordance with Article 27 (1) or an order to fully or partially discontinue the business in accordance with Article 27 (2). In cases of a corporation, “person” refers to a person who causes cancellation of its license, revocation of its registration or an order to discontinue the business, and its representative.

(2) Where any executive falls under any subparagraph of paragraph (1) or is found to fall under any subparagraph of paragraph (1) at the time he/she is appointed as an executive, he/she shall duly resign from office.

(3) Any activity in which any executive has been involved prior to his/her resignation under paragraph (2) may not lose its legal effect.

Article 10 (Examination on Public Benefits of Possession, etc. of Stocks by Common Telecommunications Business)

(1) A Public Benefit Examination Committee (hereinafter referred to as the “Committee“) shall be established in the Korea Communications Commission in order to examine as to whether any of the following cases impairs public interests prescribed by Presidential Decree (hereinafter referred to as “examination on public benefits“), such as national security, public safety and maintenance of order:

1. Where a person holds not less than 15/100 of the total number of outstanding stocks of the common telecommunications business, including those stocks held by a specially related person under Article 9 (1) 1 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as “specially related person“);

2. Where the largest stockholder of the common telecommunications business changes;

3. Where the common telecommunications business operator or any stockholder of a common telecommunications business concludes a contract with a foreign government or a foreigner for important managerial matters prescribed by Presidential Decree, such as the appointment and dismissal of executives and the transfer or acquisition of business;

4. Where any stockholder who has de facto management rights for the common telecommunications business changes, as prescribed by Presidential Decree

(2) Where a common telecommunications business operator or any stockholder of the common telecommunications business falls under paragraph (1), he/she shall report thereon to the Korea Communications Commission within 30 days from the date when such case occurs.

(3) Where a common telecommunications business operator or any stockholder of the common telecommunications business falls under paragraph (1), he/she may request the Korea Communications Commission to examine public benefits before such case occurs.

(4) Where the Korea Communications Commission has received reporting under paragraph (2) or a request for examination under paragraph (3), it shall refer such matters to the Committee for deliberation.

(5) Where the Korea Communications Commission determines as a result of examination on public benefits under paragraph (1) that the cases under any subparagraph of paragraph (1) are likely to impair public interests, it may issue an order to modify the details of a contract, suspend the implementation of a contract, suspend the exercise of voting rights, or sell relevant stocks.

(6) The scope of common telecommunications business operators who shall report or may request an examination on public benefits pursuant to paragraph (2) or (3), procedures for reporting and examinations on public benefits and other necessary matters shall be prescribed by Presidential Decree.

Article 11 (Organization, Operation, etc. of the Committee)

(1) The Committee shall consist of not less than five but not more than 10 members, including one chairperson.

(2) The Vice Chairperson of the Korea Communications Commission shall hold office as the chairperson, and members shall be commissioned by the chairperson, from among public officials ranking Grade III of the relevant central administrative agencies prescribed by Presidential Decree, public officials in general service belonging to the Senior Civil Service, and those falling under any of the following persons:

1. Persons who have advanced knowledge and career backgrounds in information and communications;

2. Persons recommended by Government-funded research institutes which is related to the national security, public safety or maintenance of order;

3. Persons recommended by nonprofit, non-governmental organizations referred to in Article 2 of the Assistance for Non-profit, Non-Governmental Organizations Act;

4. Other persons deemed necessary by the chairperson.

(3) The Committee may conduct investigations necessary for the examination on public benefits, or request an interested party or a reference witness to provide necessary data. In such cases, the relevant interested party or reference witness shall comply with such request unless justifiable grounds exist.

(4) Where the Committee deems it necessary, it may require an interested party or a reference witness to appear at a Committee meeting and state his/her opinions. In such cases, the relevant interested party or reference witness shall appear at a Committee meeting unless justifiable grounds exist.

(5) Matters necessary for the organization, operation, etc. of the Committee shall be prescribed by Presidential Decree.

Article 12 (Restrictions, etc. on Excess Stock Holdings)

(1) Where a foreign government or a foreigner has acquired stocks in violation of Article 8 (1), it or he/she shall not exercise the voting rights in the excess stocks.

(2) The Korea Communications Commission may order a stockholder who has acquired stocks in violation of Article 8 (1), a common telecommunications business operator to which the stockholder belongs, or a stockholder of the deemed-foreign corporation to correct the violation within a period up to six months.

(3) Any person in receipt of a corrective order under paragraph (2) shall correct the violation within a specified period.

(4) Where a stockholder has acquired stocks in violation of Article 8 (1), a common telecommunications business operator may refuse to renew the register of stockholders or register of members to record the excess portion.

Article 13 (Charges for Compelling Compliance)

(1) The Korea Communications Commission may impose a charge for compelling compliance, on a person who has been subjected to the order referred to in Article 10 (5), 12 (2) or 18 (8) (hereinafter referred to as “corrective order“) and fails to comply with such order within a specified period. In such cases, the charge for compelling compliance leviable daily shall not be more than 3/1,000 of the purchase price of stocks held by such person, but in cases not related with stock holdings, it shall not exceed 100 million won.

(2) A period for which charges for compelling compliance are imposed pursuant to paragraph (1) shall be from the date following the date the period prescribed by the corrective order expires to the date the corrective order is complied with. In such cases, the charge for compelling compliance shall be imposed within 30 days from the date following the date the period prescribed by the corrective order expires, in the absence of special grounds.

(3) The provisions of Article 53 (5) shall apply mutatis mutandis to the surcharge on compelling compliance.

(4) Matters necessary for the imposition, payment, refund, etc. of charges for compelling compliance shall be prescribed by Presidential Decree.

Article 14 (Issuance of Stocks)

Where a common telecommunications business operator issues stocks, such stocks shall be registered.

Article 15 (Obligation to Commence Business)

(1) A common telecommunications business operator shall install telecommunications equipment and facilities and commence the business within the period prescribed by the Korea Communications Commission.

(2) Where a common telecommunications business operator fails to commence the business within the period under paragraph (1) due to natural disasters or other unavoidable circumstances, the Korea Communications Commission may extend the relevant period only once, upon an application from the common telecommunications business operator.

Article 16 (Modification of Licenses)

(1) Where a common telecommunications business operator intends to modify the importance matters prescribed by Presidential Decree among the matters of his/her license under Article 6, he/she shall obtain a revised license from the Korea Communications Commission, as prescribed by Presidential Decree.

(2) The provisions of Articles 6 (4) and 15 shall apply mutatis mutandis to a revised license pursuant to paragraph (1).

Article 17 (Concurrent Management of Business)

(1) Where a common telecommunications business operator intends to manage any of the following businesses, he/she shall obtain approval from the Korea Communications Commission: Provided, That this may not apply to a common telecommunications business operator whose profits do not exceed 30 billion won:

1. Communications equipment manufacturing business;

2. Information and communications construction business (excluding any improvement and integration business of telecommunications networks) under subparagraph 3 of Article 2 of the Information and Communications Construction Business Act;

3. Service business (excluding any improvement and integration business of telecommunications networks) under subparagraph 6 of Article 2 of the Information and Communications Construction Business Act.

(2) The Korea Communications Commission shall grant approval under paragraph (1) if it deems that the common telecommunications business is unlikely to impede the management of the telecommunications business due to the management of the business under paragraph (1), and that it is necessary for the development of telecommunications.

Article 18 (Acquisition of Business and Merger of Corporations, etc.)

(1) Any person falling under any of the following subparagraphs shall obtain authorization from the Korea Communications Commission, as prescribed by Presidential Decree: Provided, That where the person sells telecommunications line equipment and facilities, except major telecommunications line equipment and facilities prescribed by Presidential Decree, he/she shall report thereon to the Korea Communications Commission, as prescribed by Presidential Decree, notwithstanding the provisions of subparagraph 3:

1. Any person who intends to fully or partially acquire the business of a common telecommunications business operator;

2. Any person who intends to merge with a corporate common telecommunications business;

3. Any common telecommunications business operator who intends to sell the telecommunications line facilities necessary for providing licensed common telecommunications services;

4. Any person who intends to hold not less than 15/100 of the total number of outstanding stocks of a common telecommunications business, or to become the largest stockholder of a common telecommunications business, including those stocks held by a specially related person;

5. Any person who intends to acquire stocks of a common telecommunications business operator or conclude an agreement with a common telecommunications business operator with the intent to exercise dominant influence over the right of the common telecommunications business operator to manage the business, as prescribed by Presidential Decree;

6. Any common telecommunications business operator who intends to establish a corporation to partially provide licensed common telecommunications services.

(2) Where the Korea Communications Commission intends to grant authorization under paragraph (1), it shall comprehensively examine the following matters:

1. Appropriateness of financial, technical and managerial capabilities;

2. Appropriateness of the management of information and communications resources, such as frequencies and telecommunications numbers;

3. Influence over competition among common telecommunications business operators;

4. Protection of users;

5. Utilization of telecommunications equipment and facilities and communications networks, efficiency of research and development, and influence over public benefits, such as international competitiveness of the telecommunications industry.

(3) Matters necessary for the detailed guidelines for examinations for each subject matter and procedures for examinations under paragraph (2) shall be determined and publicly announced by the Korea Communications Commission.

(4) Any person falling under any of the following subparagraphs shall succeed to the status of the relevant common telecommunications business operator which is related to his/her license:

1. Any person who acquires the common telecommunications business by obtaining authorization under paragraph (1) 1;

2. Any corporation which survived a merger or has been newly established in the course of a merger by obtaining authorization under paragraph (1) 2;

3. Any corporation which is established to partially provide common telecommunications services by obtaining authorization under paragraph (1) 6.

(5) The Korea Communications Commission may place conditions provided for in Article 6 (4) when granting authorization under paragraph (1).

(6) The Korea Communications Commission shall consult with the Fair Trade Commission when intending to grant authorization under paragraph (1).

(7) The provisions of Article 7 shall apply mutatis mutandis to the grounds for disqualification of authorization under paragraph (1).

(8) Where a person falling under paragraph (1) 4 or 5 fails to obtain authorization referred to in paragraph (1), the Korea Communications Commission may order him/her to suspend the exercise of the voting right or to sell the relevant stocks and, where such person fails to comply with the conditions under paragraph (5), issue an order to comply with such conditions within a specified period set by it.

(9) Any person who intends to obtain authorization under paragraph (1) shall be prohibited from engaging in the following conducts, prior to obtaining such authorization:

1. Integration of telecommunications networks;

2. Appointment of executives;

3. Acquisition of business, or execution of agreements for merger or sales of equipment and facilities;

4. Follow-up measures for the establishment of a company.

(10) Where any person falling under paragraph (1) is subject to the examination on public benefits, he/she may present the documents required to be submitted for the examination on public benefits, when applying for authorization under paragraph (1).

Article 19 (Suspension or Discontinuation of Business)

(1) Where a common telecommunications business operator intends to fully or partially suspend or discontinue his/her common telecommunications business, he/she shall notify users by not later than 60 days before the scheduled date of such suspension or discontinuance and obtain approval therefor from the Korea Communications Commission.

(2) Where the Korea Communications Commission deems it necessary to protect users in a separate means due to the suspension or discontinuation of the common telecommunications business, it may order the relevant common telecommunications business operator to take necessary measures for the protection of users, such as the vicarious execution of subscription change, payment of expenses incurred therein or cancellation of subscription.

(3) Where the Korea Communications Commission is in receipt of an application for approval under paragraph (1) and deems that the suspension or discontinuation of the relevant business threatens to impair public benefits, it shall not grant such approval.

Article 20 (Cancellation, etc. of Licenses)

(1) Where a common telecommunications business operator falls under any of the following subparagraphs, the Korea Communications Commission may fully or partially cancel his/her license or issue an order to fully or partially suspend business operation for up to one year:

1. Where he/she obtains a license by fraudulent or other illegal means;

2. Where he/she fails to satisfy the conditions under Articles 6 (4) and 18 (5);

3. Where he/she fails to comply with an order under Article 12 (2);

4. Where he/she fails to commence business within a period prescribed by Article 15 (1) (referring to an extended period, if such period is extended under paragraph (2) of the same Article);

5. Where he/she fails to comply with the terms and conditions of use, which are authorized or reported under Article 28 (1) and (2);

6. Where he/she fails to comply with an order under Article 52 (1) or a corrective order under Article 92 (1) without any justifiable ground.

(2) Guidelines and procedures for the dispositions under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.

SECTION 3 .- Special Category Telecommunications Business and Value-Added Telecommunications Business

Article 21 (Registration of Special Category Telecommunications Business)

(1) Any person who intends to operate the special category telecommunications business shall satisfy the following conditions and file for registration (including any registration through an information and telecommunications network) with the Korea Communications Commission, as prescribed by Presidential Decree:

1. Financial and technical capabilities;

2. Plans for protecting users;

3. Business plans, etc. and other matters prescribed by Presidential Decree.

(2) The Korea Communications Commission in receipt of registration for the special category telecommunications business under paragraph (1) may place necessary conditions to facilitate fair competition, protect users, improve service quality, efficiently utilize information and telecommunications resources.

(3) Any registration for the special category telecommunications business under paragraph (1) shall be granted only to a corporation.

(4) Any person who has completed registration for the special category telecommunications business (hereinafter referred to as “special category telecommunications business operator”) shall commence his/her business within one year after the date he/she has completed such registration.

(5) Requirements, procedures and other necessary matters for the registration under paragraph (1) shall be prescribed by Presidential Decree.

Article 22 (Reporting, etc. on Value-Added Telecommunications Business)

(1) Any person who intends to operate the value-added telecommunications business shall report (including cases of reporting through information and telecommunications networks) to the Korea Communications Commission, in accordance with conditions and procedures prescribed by Presidential Decree. In such cases, a small-scale value-added telecommunications business operator shall be deemed to have reported if he/she meets the standards for capital, etc. prescribed by Presidential Decree.

(2) Notwithstanding the provisions of paragraph (1), any person who intends to conduct special value-added telecommunications business shall register (including registration through an information and communications network) with the Korea Communications Commission along with the following: (Inserted by Act nº 10656, May 19, 2011)

1. An implementation plan to take technical measures to comply with the provisions of Articles 42, 42-2, 42-3 and 45 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and Article 104 of the Copyright Act;

2. Human resources and physical facilities necessary to conduct affairs;

3. Financial soundness;

4. Other matters prescribed by Presidential Decree, such as a business plan.

(3) Where the Korea Communications Commission accepts the registration of value-added telecommunications business pursuant to paragraph (2), it may attach conditions necessary for the implementation of a plan under subparagraph 1 of the same paragraph thereto. (Inserted by Act nº 10656, May 19, 2011)

(4) Where a common telecommunications business operator intends to operate the value-added telecommunications business, he/she shall be deemed to have reported thereon. (Amended by Act nº 10656, May 19, 2011)

(5) Any person who has reported on value-added telecommunications business pursuant to the forepart of paragraph (1) and any person who has registered value-added telecommunications business pursuant to paragraph (2) shall commence his/her business within one year after he/she reports or registers such business. (Amended by Act nº 10656, May 19, 2011)

(6) A report under the forepart of paragraph (1), requirements and procedures for registration under paragraph (2), and other necessary matters shall be prescribed by Presidential Decree. (Inserted by Act nº 10656, May 19, 2011)

Article 22-2 (Disqualifications for Registration)

Any individual or corporation, for whom three years have not passed from the date the registration thereof is cancelled pursuant to Article 27 (2), or a person who is a major stockholder (referring to an investor prescribed by Presidential Decree) of such corporation at the time of such cancellation shall not conduct registration under Article 22 (2).

(Article Inserted by Act nº 10656, May 19, 2011)

Article 23 (Modification of Registered or Reported Matters)

Where any special category telecommunications business operator or any person who has reported on the value-added telecommunications business pursuant to the forepart of Article 22 (1) or any person who has registered value-added telecommunications business pursuant to paragraph (2) of the same Article intends to modify matters prescribed by Presidential Decree among registered or reported matters, he/she shall make a revised registration or a revised report (including cases of making a revised registration or a revised report through information and telecommunications networks) with the Korea Communications Commission, as prescribed by Presidential Decree. (Amended by Act nº 10656, May 19, 2011)

Article 24 (Transfer, Acquisition. etc. of Business)

Where any person transfers or acquires all or part of his/her special category telecommunications business or value-added telecommunications business, or a corporate special category telecommunications business operator or a corporate value-added telecommunications business operator (referring to a person who has reported value-added telecommunications business pursuant to the forepart of Article 22 (1), a person who has registered value-added telecommunications business pursuant to paragraph (2) of the same Article or a person deemed to have reported value-added telecommunications business pursuant to the latter part of paragraph (1) of the same Article or paragraph (4); hereinafter the same shall apply) is merged with another corporation or comes into an inheritance, any of the following persons shall report (including cases of reporting through information and telecommunications networks) to the Korea Communications Commission, in accordance with conditions and procedures prescribed by Presidential Decree: (Amended by Act nº 10656, May 19, 2011)

1. A person who acquires the relevant business;

2. A corporation which survived or has been newly established following the merger;

3. A person who inherits the relevant business.

Article 25 (Succession of Business)

Where any person transfers or acquires the special category telelcommunications business or the value-added telecommunications business, a corporate special category telecommunications business operator or a corporate value-added telecommunications business operator merges with another corporation, or any person inherits the value-added telecommunications business, pursuant to Article 24, a person who falls under any of the following subparagraphs shall succeed to the status of the preceding special category telecommunications business operator or the value-added telecommunications business operator:

1. A person who acquires the relevant business;

2. A corporation which survived or has been newly established in the course of the merger;

3. A person who inherits the relevant business.

Article 26 (Suspension, Discontinuation, etc. of Business)

(1) Where a special category telecommunications business operator or a value-added telecommunications business operator intends to fully or partially suspend or discontinue his/her business, he/she shall notify the users of the relevant telecommunications services of such suspension or discontinuation, and report (including cases of reporting through information and telecommunications networks) thereon to the Korea Communications Commission by not later than 30 days prior to the scheduled date of such suspension or discontinuation. In such cases, the duration of suspension of the business shall not exceed one year.

(2) Where a corporate special category telecommunications business operator or a corporate value-added telecommunications business operator is dissolved for a reason other than a merger, the relevant liquidator (referring to the trustee in bankruptcy, when such corporate business operator is dissolved by bankruptcy) shall promptly report thereon (including cases of reporting through information and telecommunications networks) to the Korea Communications Commission.

Article 27 (Cancellation of Business Registration, Order to Discontinue Business, etc.)

(1)          Where a special category telecommunications business operator falls under any of the following subparagraphs, the Korea Communications Commission may fully or partially cancel his/her business registration, or issue an order to fully or partially suspend the business operation for up to one year: Provided, That if he/she falls under subparagraph 1, the Korea Communications Commission shall fully or partially cancel his/her business registration:

1. Where he/she registers the business by fraudulent or other illegal means;

2. Where he/she fails to satisfy the conditions under Article 21 (2);

3. Where he/she fails to commence the business within one year from the date he/she has completed the business registration, in violation of Article 21 (4) or where he/she suspends the business operation for at least one year, in violation of the latter part of Article 26 (1);

4. Where he/she fails to comply with an order under Article 52 (1) or a corrective order under Article 92 (1) without justifiable grounds.

(2) Where a value-added telecommunications business operator falls under any of the following subparagraphs, the Korea Communications Commission may order him/her to discontinue all or part of his/her business (in cases of a special value-added telecommunication business operator, referring to the cancellation of all or part of registration) or to suspend all or part of his/her business operation for up to one year: Provided, That if he/she falls under subparagraph 1, the Korea Communications Commission shall order a partial or whole closure of the business: (Amended by Act nº 10656, May 19, 2011)

1. Where he/she reports or registers such business by fraudulent or other illegal means;

2. Where he/she fails to fulfill the conditions under Article 22 (3);

3. Where he/she fails to commence the business within one year from the date he/she reports or registers such business, in violation of Article 22 (5) or where he/she suspends the business operation for at least one year, in violation of the latter part of Article 26 (1);

4. Where he/she fails to comply with an order under Article 52 (1) or a corrective order under Article 92 (1) without justifiable grounds;

5. Where he/she fails to execute an order to take corrective measures under Article 64 (4) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;

6. Where a person who has been subjected to the disposition of a fine for negligence not less than three times pursuant to Article 142 (1) and (2) 3 of the Copyright Act is subjected to the disposition of a fine for negligence again, in whose case the Minister of Culture, Sports and Tourism requests such disposition through deliberation by the Korea Copyright Commission under Article 112 of the same Act.

(3) Guidelines, procedures and other matters necessary for the dispositions under paragraph (1) or (2) shall be prescribed by Presidential Decree.

CHAPTER III.- TELECOMMUNICATIONS SERVICES

Article 28 (Reporting, etc. on Terms and Conditions of Use)

(1) A common telecommunications business operator shall determine the service charges and the terms and conditions of use for each service type he/she intends to provide (hereinafter referred to as “terms and conditions of use“), and report thereon (including cases of reporting modified matters; hereafter the same shall apply in this Article) to the Korea Communications Commission.

(2) Notwithstanding paragraph (1), in cases of common telecommunications services to be provided by a common telecommunications business operator who satisfies the standards prescribed by Presidential Decree, such as the scale of business and market share, the common telecommunications business operator shall obtain authorization (including revised authorization; hereafter the same shall apply in this Article) from the Korea Communications Commission: Provided, That if a common telecommunications business operator reduces the service charges which are stated in the terms and conditions of use already authorized, he/she shall report thereon to the Korea Communications Commission.

(3) In cases under the main sentence of paragraph (2), the Korea Communications Commission shall authorize the terms and conditions of use, if they satisfy the following requirements:

1. Telecommunications service charges shall be determined with reasonable consideration of the cost for supply, profits, classification of expenses and profits corresponding to each service, cost saving depending on the methods of service delivery, influence over fair competition environments, etc.;

2. They shall not put users at a disadvantage in terms of matters concerning the responsibility of common telecommunications business operators and relevant users or cost-sharing methods for installation works of telecommunications facilities and other works;

3. They shall not unfairly restrict the use of telecommunications line facilities by other telecommunications business operators or users;

4. They shall not unfairly discriminate specific persons;

5. They shall secure major telecommunications under Article 85, taking into consideration the efficient implementation of functions of the State.

(4) Any person who intends to report on the terms and conditions of use of telecommunications service or obtain authorization therefor under paragraphs (1) and (2) shall submit to the Korea Communications Commission the materials stating the basis of the calculation of telecommunications service charges (in cases of any alteration, including a comparative table on matters before and after the alteration), including subscription expenses, basic rates, user’s fees, additional service charges, actual expenses, etc.

(5) Necessary matters concerning the scope of and procedures for report or authorization, other than those under paragraphs (1) through (4), shall be prescribed by Presidential Decree.

Article 29 (Reduction or Exemption of Fees)

A common telecommunications business operator may reduce or exempt telecommunications service charges, as prescribed by Presidential Decree, to the extent necessary to sustain national security, disaster relief, social welfare, public interests, etc.

Article 30 (Restrictions on Use by Third Parties)

No person shall advocate a third party’s communications through telecommunications services provided by a telecommunications business operator or provide such services for a third party’s communications: Provided, That the same shall not apply in the following cases:

1. Where it is required to ensure the prevention and rescue from disaster, traffic and communications, and the supply of electricity, and to maintain order in a national emergency situation;

2. Where a person renders ancillary telecommunications services to clients while running his/her business other than the telecommunications business;

3. Where a person is allowed to use telecommunications services on a trial basis for the purpose of developing and marketing telecommunications equipment and facilities, such as terminal devices, etc. which enable to use the telecommunications services;

4. Where any user allows any third party to use telecommunications services to the extent that the latter does not use them repeatedly;

5. Where it is necessary for the public interests or where the use of telecommunications services do not impede the business operations by a telecommunications business, as prescribed by Presidential Decree.

Article 31 (Use of Transmission or Line Equipment and Facilities, etc.)

(1) Any composite cable TV business operator, transmission network business operator, or relay cable broadcasting business operator under the Broadcasting Act may permit common telecommunications business operators to use his/her own transmission or line equipment and facilities or cable broadcasting equipment and facilities in a manner prescribed by Presidential Decree.

(2) Where a common telecommunications business operator intends to provide value-added telecommunications services by using transmission or line equipment and facilities or cable broadcasting equipment and facilities owned by any composite cable TV business operator, transmission network business operator, or relay cable broadcasting business operator under the Broadcasting Act, he/she shall report thereon to the Korea Communications Commission pursuant to Article 22 (1).

(3) Articles 35 through 37, and 39 through 55 shall apply mutatis mutandis to a permit to use transmission or line equipment and facilities or cable broadcasting equipment and facilities pursuant to paragraph (1).

(4) Article 28 (2) through (7) of the Framework Act on Broadcasting Communications Development shall apply mutatis mutandis to the provision of services pursuant to paragraph (2).

Article 32 (Protection of Users)

(1) A telecommunications business operator shall promptly address the reasonable opinions or dissatisfactions raised by users with respect to telecommunications services. In such cases, if it is difficult to promptly address them, he/she shall notify the users of the reasons thereof and the schedule for treatment.

(2) Compensation for losses incurred by the occurrence of reasons causing the opinions or dissatisfactions under paragraph (1) and by the delay in addressing them shall be governed by Article 33.

(3) Where a telecommunications business operator who provides common telecommunications services intends to receive service charges from users in advance, prior to providing such telecommunications services, he/she shall purchase a guarantee insurance policy by which the person designated by the Korea Communications Commission is insured and which covers an amount calculated according to the guidelines prescribed by Presidential Decree within the total amount of advance service charges so as to compensate for losses suffered by users due to a failure to provide such telecommunications services: Provided, That a telecommunications business operator may choose not to purchase a guarantee insurance policy in any case prescribed by Presidential Decree taking into consideration the financial capability of the relevant telecommunications business operator, service charges, etc.

(4) Any insured person who has been designated under paragraph (3) shall pay the amount of coverage provided under a guarantee insurance policy referred to in paragraph (3) to the users, etc. who fail to receive telecommunications services after pre-paying service charges.

(5) Matters necessary for the purchase of guarantee insurance policies, renewal of guarantee insurance, procedures for paying insurance, etc. pursuant to paragraphs (3) and (4) shall be prescribed by Presidential Decree.

Article 32-2 (Notification of Excess, etc. of Limits on Charges)

(1) Where any telecommunications business operator who uses frequency allocated pursuant to the Radio Waves Act falls under any of the followings, he/she shall notify users of such fact:

1. Where he/she exceeds the limits on a charge for each telecommunications service on which he/she agreed with a user at the beginning;

2. Where a charge is imposed following the use of international telecommunications service, such as international telephone service.

(2) Matters necessary for objects, methods, etc. of a notification under paragraph (1) shall be determined and announced by the Korea Communications Commission.

(Article Inserted by Act nº 11201, Jan. 17, 2012)

Article 33 (Compensation for Losses)

A telecommunications business operator shall compensate for any losses suffered by a user when he/she has caused such losses in the course of providing telecommunications services: Provided, That if such loss results from a force majeure event or such user causes such losses on purpose or by gross negligence, the liability for compensation for the relevant losses shall be mitigated or exempted.

CHAPTER IV.- PROMOTION OF COMPETITION IN TELECOMMUNICATIONS BUSINESS

Article 34 (Promotion of Competition)

(1) The Korea Communications Commission shall endeavor to establish an efficient competition system and to promote environments of fair competition in the telecommunications business.

(2) The Korea Communications Commission shall appraise the conditions of competition in the common telecommunications business every year for the purpose of developing competition policies to establish an efficient competition system and to promote environments of fair competition in the telecommunications business under paragraph (1).

(3) The detailed guidelines, procedures and methods for appraising competition conditions under paragraph (2) and other necessary matters shall be prescribed by Presidential Decree.

Article 35 (Provision of Equipment and Facilities)

(1) Where a telecommunications business operator requests a common telecommunications business operator or an authority that constructs, operates or manages roads, railroads, subways, water and sewage systems, electrical equipment, telecommunications line equipment and facilities, etc. (hereinafter referred to as “facility management authority“) to provide him/her with ducts, common utility conduits, poles, cables, stations, or other equipment (including telecommunications equipment and facilities; hereinafter the same shall apply) or facilities (hereinafter referred to as “equipment and facilities“), such common telecommunications business operator or such facility management authority may provide equipment and facilities by contract with him/her.

(2) Any of the following common telecommunications business operators or facility management authorities shall provide equipment and facilities by contract, notwithstanding the provisions of paragraph (1): Provided, That this shall not apply in cases where a facility management authority plans to use such equipment and facilities;

1. A common telecommunications business operator who possesses equipment and facilities indispensable for other telecommunications business operators to provide telecommunications services;

2. Any of the following facility management authorities who possess equipment and facilities, such as ducts, common utility conduits, or poles:

(a) Korea Highway Corporation established under the Korea Highway Corporation Act;

(b) Korea Water Resources Corporation established under the Korea Water Resources Corporation Act;

(c) Korea Electric Power Corporation established under the Korea Electric Power Corporation Act;

(d) Korea Rail Network Authority established under the Korea Rail Network Authority Act;

(e) A local public enterprise under the Local Public Enterprises Act;

(f) A local government under the Local Autonomy Act;

(g) A regional construction management administration under the Road Act;

3. A common telecommunications business operator or facility management authority whose scale of the business, market share, etc. of common telecommunications services meet the standards prescribed by Presidential Decree.

(3) The Korea Communications Commission shall establish and publicly announce the scope of equipment and facilities under paragraphs (1) and (2) and the guidelines for the conditions, procedures, methods and calculation of prices for providing such equipment and facilities. In such cases, the scope of equipment and facilities to be provided under paragraph (2) shall be determined in consideration of the demand for equipment and facilities by common telecommunications business operators or facility management authorities falling under any subparagraph of the same paragraph.

(4) A telecommunications business operator who has been provided with equipment and facilities may install the apparatus enhancing the efficiency of the relevant equipment and facilities to the extent necessary to provide telecommunications services.

(5) The Korea Communications Commission may, as prescribed by Presidential Decree, order a telecommunications business operator or facility management authority to submit data concerning equipment and facilities, so as to efficiently utilize and manage equipment and facilities. In such cases, the telecommunications business operator or facility management authority shall comply with such order unless justifiable grounds exist.

(6) The Korea Communications Commission may designate a specialized institution to provide equipment and facilities under paragraphs (1) and (2).

(7) Matters necessary for the designation of a specialized institution under paragraph (6) and the methods of business operations shall be determined and publicly announced by the Korea Communications Commission.

Article 36 (Joint Use of Subscriber Lines)

(1) Where a telecommunications business operator determined and publicly announced by the Korea Communications Commission requests a common telecommunications business operator to jointly use the lines installed in the section from modems directly connected with the users to the users (hereafter referred to as “subscriber lines” in this Article), the common telecommunications business operator shall permit the joint use of subscriber lines.

(2) The Korea Communications Commission shall establish and publicly announce the scope of, and the guidelines for the conditions, procedures, methods and calculation of prices for the joint use of subscriber lines under paragraph (1).

Article 37 (Joint Utilization of Radio Communications Facilities)

(1) Where a common telecommunications business operator receives a request for joint utilization of radio communications facilities (hereinafter referred to as “joint utilization“) from other common telecommunications business operators, he/she may permit joint utilization by contract. In such cases, the prices for joint utilization by common telecommunications business operators which are determined and publicly announced by the Korea Communications Commission shall be computed and adjusted in a fair and reasonable manner.

(2) Where a common telecommunications business operator determined and publicly announced by the Korea Communications Commission receives a request for joint utilization of radio communications facilities from another common telecommunications business operator determined and publicly announced by the Korea Communications Commission, he/she shall permit the joint utilization by contract, notwithstanding paragraph (1), in order to enhance the efficiency of the telecommunications business and protect users.

(3) The guidelines for calculating the prices for the joint utilization under the latter part of paragraph (1), procedures and methods for paying such prices, and the scope of, and the guidelines for the conditions, procedures, methods and calculation of prices for the joint utilization under paragraph (2) shall be determined and publicly announced by the Korea Communications Commission.

Article 38 (Wholesale Provision of Telecommunications Services)

(1) Where a common telecommunications business operator receives a request from another telecommunications business operator, he/she may reach agreements with such telecommunications business operators to provide his/her telecommunications services to them or permit them to fully or partially use telecommunications equipment and facilities required for the provision of telecommunications services (hereinafter referred to as “wholesale services“) so as to enable them to provide his/her telecommunications services to users (hereinafter referred to as “resale“).

(2) For the purpose of the promotion of competition in the telecommunications business, the Korea Communications Commission may designate and publicly announce telecommunications services (hereinafter referred to as “mandatory wholesale services“) to be provided by a common telecommunications business operator who shall provide wholesale services by contract (hereinafter referred to as “mandatory wholesale service provider“), upon receipt of a request from other telecommunications business operators who intend to provide resale telecommunications services. In such cases, mandatory wholesale services to be provided by a mandatory wholesale service provider shall be designated among telecommunications services provided by a common telecommunications business operator who satisfies the standards determined by Presidential Decree, such as the scale of the business and market share.

(3) Where the Korea Communications Commission deems, as a result of the annual assessment of competition in communications markets, that the purposes of wholesale telecommunications services are achieved by vitalizing the competition in the telecommunications business or mandatory wholesale services fail to meet the standards for designation, it may revoke the designation of mandatory wholesale services provided by a mandatory wholesale service provider.

(4) The Korea Communications Commission shall determine and publicly announce the guidelines for the conditions, procedures, methods and calculation of prices for providing wholesale services to be observed by a mandatory wholesale service provider when reaching an agreement for the provision of mandatory wholesale services. In such cases, in principle, the prices for providing wholesale services shall be calculated by subtracting avoidable costs (referring to the relevant costs that can be avoided if a common telecommunications business operator does not directly provide telecommunications services to users) from the resale prices for mandatory wholesale services.

(5) A common telecommunications business operator shall, upon receipt of a request for wholesale services from other telecommunications business operators, reach an agreement for such wholesale services within 90 days, unless justifiable grounds exist, and the telecommunications business operator who has reached an agreement for wholesale services with a common telecommunications business operator shall report to the Korea Communications Commission within 30 days after the date of such agreement, as prescribed by Presidential Decree. The same shall apply to the amendment to or revocation of an agreement for wholesale services.

(6) An agreement under paragraph (5) shall comply with the guidelines publicly announced by the Korea Communications Commission pursuant to paragraph (4).

Article 39 (Interconnection)

(1) Where a telecommunications business operator receives a request for interconnection of telecommunications equipment and facilities from other telecommunications business operators, he/she may permit the interconnection by contract.

(2) The Korea Communications Commission shall determine and publicly announce the scope of, and the guidelines for the conditions, procedures, methods and calculation of prices for interconnections of telecommunications equipment and facilities under paragraph (1).

(3) Notwithstanding paragraphs (1) and (2), any of the following common telecommunications business operators shall permit the interconnection by contract, upon receipt of a request under paragraph (1):

1. The common telecommunications business operator who possesses equipment and facilities indispensable for other telecommunications business operators to provide telecommunications services;

2. The common telecommunications business operator whose scale of the business, market share, etc. of common telecommunications services meet the standards determined by Presidential Decree.

Article 40 (Prices of Interconnection)

(1) Prices for interconnection shall be calculated in a fair and reasonable manner and adjusted by mutual agreements, and detailed guidelines, procedures and methods for calculating prices for interconnection shall be governed by the guidelines under Article 39 (2).

(2) Where a telecommunications business operator experiences any disadvantage in a method of interconnection, connection quality, the provision of information required for interconnection, etc. for reasons not attributable to him/her, he/she may pay the prices for interconnection reduced according to the guidelines under Article 39 (2).

Article 41 (Joint Use, etc. of Telecommunications Equipment and Facilities)

(1) Where a common telecommunications business operator receives a request for access to or joint use of his/her own telecommunications equipment and facilities, such as ducts, cables, poles or stations, from other telecommunications business operators who intend to establish or operate equipment and facilities required for interconnection, he/she may enter reach agreement with them to permit such access or joint use.

(2) The Korea Communications Commission shall determine and publicly announce the scope of and the guidelines for conditions, procedures, methods and calculation of prices for access to or joint use of telecommunications equipment or facilities under paragraph (1).

(3) Notwithstanding the provisions of paragraph (1), any of the following common telecommunications business operators shall permit access to or joint use of the telecommunications equipment or facilities under paragraph (1) by contract, upon receipt of a request under paragraph (1):

1. A common telecommunications business operator who possesses equipment and facilities indispensable for another telecommunications business operator to provide telecommunications services;

2. A common telecommunications business operator whose business scale, market share, etc. of common telecommunications services meet the standards prescribed by Presidential Decree.

Article 42 (Provision of Information)

(1) Where a telecommunications business operator requests a common telecommunications business operator to provide technical information or users’ personal information needed for the provision of equipment and facilities, wholesale services, interconnection services, joint-use services, billing and collections, and telephone number information services, the common telecommunications business operator may provide such information by contract with the telecommunications business operator.

(2) The Korea Communications Commission shall determine and publicly announce the scope of and the guidelines for conditions, procedures, methods and calculation of prices for providing information under paragraph (1).

(3) Notwithstanding the provisions of paragraph (1), any of the following common telecommunications business operators shall provide information requested by contract, upon receipt of a request under paragraph (1):

1. A common telecommunications business operator who possesses equipment and facilities indispensable for other telecommunications business operator to provide telecommunications services;

2. A common telecommunications business operator whose business scale, market share, etc. of common telecommunications services meet the standards prescribed by Presidential Decree.

(4) A common telecommunications business operator under paragraph (3) shall determine the technical standards to be satisfied by other telecommunications business operator or users who intend to connect their terminal devices, etc. with his/her own telecommunications equipment and facilities, the requirements for the provision and use, and other standards required for the creation of environments for fair competition, and publicly announce them by obtaining approval from the Korea Communications Commission.

Article 43 (Prohibition of Misuse of Information)

(1) No telecommunications business operator shall disclose any user’s personal information that he/she has obtained in the course of providing his/her own services, telecommunications equipment and facilities, wholesale services, interconnection services or joint-use services: Provided, That the same shall not apply in cases where a telecommunications business operator discloses such information with the user’s consent or under a lawful procedure pursuant to any Act.

(2) A telecommunications business operator shall use the technical information or user’s personal information obtained under Article 42 (1) and (3) only for its original purposes, and shall not misuse such information or provide such information to a third party.

Article 44 (Reporting, etc. on Agreement on Interconnection, etc.)

(1) Where a common telecommunications business operator or a facility management authority has received a request for the provision of equipment and facilities, joint utilization, interconnection or joint-use services or provision of information from other telecommunications business operators, he/she shall reach an agreement under Article 35 (1) and (2), the former part of Article 37 (1), Article 39 (1), 41 (1) or 42 (1) within 90 days unless special grounds exist and report it to the Korea Communications Commission within 30 days after the date of such agreement, as prescribed by Presidential Decree. The same shall apply to the amendment to or revocation of an agreement.

(2) Notwithstanding paragraph (1), if a common telecommunications business operator under the latter part of paragraph (1) and paragraph (2) of Article 37, and Articles 39 (3), 41 (3) or 42 (3) is a party to an agreement and requests another common telecommunications business operator to reach such agreement, the common telecommunications business operator who has received the request shall enter into the agreement within 90 days unless special grounds exist and apply for authorization to the Korea Communications Commission within 30 days after the date of agreement as prescribed by Presidential Decree, and disclose the details of such agreement within 30 days after the date of authorization. The same shall apply to the amendment to or revocation of an agreement.

(3) Agreements under paragraphs (1) and (2) shall comply with the guidelines publicly announced by the Korea Communications Commission pursuant to Articles 35 (3), 37 (3), 39 (2), 41 (2), or 42 (2).

(4) Where it is necessary to supplement an application for authorization under paragraph (2), the Korea Communications Commission may issue an order for supplementation by specifying a time limit for supplementation.

(5) Agreements under Articles 41 (1) and 42 (1) may be included in agreements under Article 39 (1).

Article 45 (Ruling by the Korea Communications Commission)

(1) A telecommunications business operator or user may apply for a ruling on the following matters to the Korea Communications Commission, when the parties concerned have failed to reach an agreement thereon or it is impossible to reach an agreement thereon:

1. Compensation for losses under Article 33;

2. Conclusion of an agreement within 90 days on the provision of equipment and facilities, joint utilization, wholesale services, interconnection or joint-use services, provision of information, etc.;

3. Implementation of an agreement on the provision of equipment and facilities, joint utilization, wholesale services, interconnection or joint-use services, provision of information, etc. or compensation for losses rising from the implementation of such agreement;

4. Other disputes related to the telecommunications business or subject matters of the ruling by the Korea Communications Commission under other Acts.

(2) The Korea Communications Commission shall, upon receipt of an application for a ruling under paragraph (1), give notice thereof to the other party and provide an opportunity to state his/her opinion within a specified period: Provided, That this shall not apply in cases where the party concerned fails to state his/her opinion without any justifiable ground.

(3) The Korea Communications Commission shall make a ruling within 90 days from the date of receipt of the application for a ruling: Provided, That if it fails to make a ruling within such period due to inevitable circumstances, the period may be extended only once for up to 90 days following a resolution passed by the Korea Communications Commission.

(4) Where one of the parties files a lawsuit during the ruling procedures, the Korea Communications Commission shall suspend such procedures and give notice thereof to the other party. The same shall apply in cases where it is confirmed that a lawsuit has been filed before the application for a ruling.

(5) Where the Korea Communications Commission makes a ruling on the matters under paragraph (1), it shall promptly serve the ruling documents on the parties concerned.

(6) Where no lawsuit is filed over the dispute between business operators or between a business operator and a user within 60 days after the date the certified transcripts of the ruling documents of the Korea Communications Commission are served on the business operator or user who is a party to the ruling or the lawsuit over such dispute is withdrawn or both parties clearly express their consent for the ruling to the Korea Communications Commission, both parties shall be deemed to have reached an agreement with the same effect as the ruling.

Article 46 (Referral of Disputes)

The Korea Communications Commission may establish a dispute settlement panel on a case-by-case basis and refer disputes to the relevant dispute settlement panel if it deems it appropriate or necessary to make a ruling on the matters under Article 45 (1).

Article 47 (Request for Appearance, Hearing of Opinions, etc.)

Where the Korea Communications Commission deems it necessary to deal with ruling cases, it may take any of the following measures upon receipt of an application by the party concerned or ex officio:

1. Requests for appearance by or hearing of opinions from the party concerned or a witness;

2. Requests for appraisal by an appraiser;

3. Requests for submission of documents or articles related to disputes and keeping documents or articles submitted in custody.

Article 48 (Management Plan for Telecommunications Numbers, etc.)

(1) The Korea Communications Commission shall develop and implement management plans for telecommunications numbers in order to efficiently provide telecommunications services, to promote user convenience and to create environments for fair competition among telecommunications business operators.

(2) Where the Korea Communications Commission has developed the plans under paragraph (1), it shall publicly announce them. The same shall also apply to an amendment to the developed plan.

(3) Any telecommunications business operator shall comply with the matters publicly announced under paragraph (2).

Article 49 (Settlement of Accounts)

(1) Any common telecommunications business operator shall complete settlement of accounts as prescribed by Presidential Decree, prepare a business report for the preceding year and submit it to the Korea Communications Commission by not later than three months after the end of each fiscal year, and retain the related books and source documents.

(2) Where the Korea Communications Commission intends to determine the matters concerning settlement of accounts under paragraph (1), it shall first consult with the Minister of Strategy and Finance.

(3) The Korea Communications Commission may verify the details of any business report submitted by a common telecommunications business operator in accordance with paragraph (1).

(4) If it is necessary to conduct the verification referred to in paragraph (3), the Korea Communications Commission may order the relevant common telecommunications business operator to submit related material or conduct an inspection necessary to ascertain the facts.

(5) Where the Korea Communications Commission intends to conduct an inspection pursuant to paragraph (4), it shall notify the relevant common telecommunications business operator of the inspection plan, including the period for and reasons and details of the inspection by not later than seven days before such inspection.

(6) Any person who conducts an inspection pursuant to paragraph (4) shall present a certificate indicating his/her authority to the persons concerned, and deliver thereto a document stating his/her name, the period and purpose of visit, etc. at the time of his/her first visit.

Article 50 (Prohibited Acts)

(1)          No telecommunications business operator may commit any of the following acts (hereinafter referred to as “prohibited acts“) which undermine or are feared to undermine fair competition or users’ interests, or allow other telecommunications business operators or third parties to commit such acts:

1. Acts which place unfair or discriminative conditions or restrictions on the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc.;

2. Acts which unfairly refuse to conclude an agreement on the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc. or failing to implement a concluded agreement without justifiable grounds;

3. Acts which misuse the information of other telecommunications business operators that he/she has obtained in the course of the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc., for his/her business operations;

4. Acts which compute telecommunications service charges or the prices for the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc., by unfairly itemizing the expenses or revenues;

5. Acts which provide telecommunications services in a manner different from the terms and conditions of use (limited to the terms and conditions of use reported or authorized under Article 28 (1) and (2)), or in a manner which substantially undermines telecommunications users’ interests;

6. Acts which determine that the prices for the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc. which are unfairly higher than the supply prices;

7. Acts which refuse or restrict appropriate profit sharing when trading digital content through telecommunications services using the frequencies allocated under the Radio Waves Act.

(2) Where the provisions of Articles 52 and 53 apply to the acts under paragraph (1) 5 committed by a person who acts for a telecommunications business operator to conclude contracts (or modify the terms of concluded contracts) with users under an agreement with the telecommunications business operator, such acts shall be deemed to have been committed by the telecommunications business operator: Provided, That the same shall not apply in cases where the telecommunications business operator has paid considerable attention in order to prevent such acts.

(3) Matters necessary for categories of and standards for the acts prohibited under paragraph (1) shall be prescribed by Presidential Decree.

Article 51 (Fact-Finding Investigations, etc.)

(1) Where the Korea Communications Commission is notified or become aware that any act has been committed in violation of Article 50 (1), it may order the public officials under its control to conduct a fact-finding investigation necessary for the verification thereon.

(2) Ifthe Korea Communications Commission deems a fact-finding investigation under paragraph (1) is necessary, it may order the public official under its control to visit the offices or places of business of a telecommunications business operator or places of business of a person entrusted with the affairs of a telecommunications business operator (if the affairs entrusted by a telecommunications business operator are related to the provisions of Article 50, limited only to such affairs; hereafter the same shall apply in this Article) for an investigation on books, documents, other data or articles.

(3) Where the Korea Communications Commission intends to conduct a fact-finding investigation under paragraph (1), it shall notify the relevant telecommunications business operator of an investigation plan, including a period for and reasons and details of the investigation by not later than seven days before such investigation: Provided, That this shall not apply in cases of emergency or in cases where deemed that any prior notification might cause the destruction of any evidence to make it impossible to attain the purposes of such investigation.

(4) A person who visits the offices or places of business of a telecommunications business operator or the places of business of a person entrusted with the affairs of a telecommunications business operator to conduct a fact-finding investigation under paragraph (2) shall present a certificate indicating his/her authority, and allow the persons interested in the relevant offices or places of business to participate in such fact-finding investigation.

(5) Any public official in charge of a fact-finding investigation under paragraph (2) may order a telecommunications business operator or a person entrusted with the affairs of a telecommunications business operator to submit necessary data or articles, and temporarily keep such data or articles in his/her custody if the destruction of evidence, such as the disposal, concealment, or replacement of such data or articles, is anticipated.

(6) The Korea Communications Commission shall promptly return the data or articles kept in custody if they fall under any of the following subparagraphs:

1. Where it is deemed upon examination that they are not associated with the relevant investigation;

2. Where it is no longer necessary to keep them in custody because the purposes of the relevant investigation are achieved.

Article 52 (Measures on Prohibited Acts)

(1) The Korea Communications Commission may order a telecommunications business operator to take any of the following measures if it deems that a violation of Article 50 (1) has been committed:

1. Separation of the supply system of telecommunications services;

2. Amendment to internal accounting regulations, etc. concerning telecommunications services;

3. Disclosure of information concerning telecommunications services;

4. Conclusion, implementation or change of terms of an agreement between telecommunications business operators;

5. Amendment to the terms and conditions of use and the articles of incorporation of telecommunications business operators;

6. Suspension of prohibited acts;

7. Public announcement of a fact that a corrective order is issued due to prohibited acts;

8. Measures necessary for correcting the violation caused by prohibited acts, such as the removal of telecommunications equipment and facilities;

9. Business process improvement for telecommunications services;

10. Prohibition on the recruitment of new users for up to three months (limited to the cases where a violation is repeated at least three times even though the measures under subparagraphs 1 through 9 have been taken on such violation or where it is clearly recognized that such measures are not sufficient to prevent damage to users);

11. Other matters prescribed by Presidential Decree as may be necessary to take the measures referred to in subparagraphs 1 through 10.

(2) Telecommunications business operators shall comply with an order issued by the Korea Communications Commission under paragraph (1) within a period specified by Presidential Decree: Provided, That the Korea Communications Commission may extend the relevant period only once, if it is deemed that the telecommunications business operator is unable to comply with the order within the specified period due to natural disasters and other extenuating circumstances.

(3) The Korea Communications Commission shall notify the parties concerned of the details of measures and provide them with an opportunity to state their opinions within a prescribed period before it takes measures under paragraph (1), and where deemed necessary, it may request an interested party or witness to appear and state his/her opinions or request an appraiser to conduct appraisal: Provided, That this shall not apply in cases where the parties concerned fail to state their opinions without justifiable grounds.

(4) The Korea Communications Commission shall not take any measures under paragraph (1) or impose penalty surcharges under Article 53 on a violation of Article 50 (1) if five years have passed after such violation: Provided, That this shall not apply where any measure already taken or the imposition of a penalty surcharge is revoked by a court and a new measure is to be taken based on such decision.

Article 53 (Imposition, etc. of Penalty Surcharge on Prohibited Acts)

(1) Where any act is committed in violation of Article 50 (1), the Korea Communications Commission may impose a penalty surcharge on the relevant telecommunications business operator in an amount not exceeding 3/100 of his/her profit prescribed by Presidential Decree. In such cases, if the telecommunications business operator refuses to submit data necessary for the calculation of his/her profit or submits false data, such profit may be estimated based on financial statements and other accounting materials of the relevant telecommunications business operator and the business operators providing the same or similar type of services, and the materials concerning the current status of business operations, such as the number of subscribers, service charges, etc.: Provided, That where there is no profit or it is difficult to calculate the profit as prescribed by Presidential Decree, a penalty surcharge may be imposed in an amount not exceeding one billion won.

(2) Where a common telecommunications business operator who shall submit a business report under Article 49 falls under any of the following subparagraphs, the Korea Communications Commission may impose a penalty surcharge on the relevant common telecommunications business operator in an amount not exceeding 3/100 of his/her profit prescribed by Presidential Decree:

1. Where he/she fails to submit a business report under Article 49 or to comply with an order to submit relevant materials;

2. Where he/she fails to include important matters in a business report under Article 49 or includes false matters;

3. Where he/she fails to perform accounting, in violation of Article 49 (1) or to retain books or source documents.

(3) The Korea Communications Commission shall imposes a penalty surcharge under paragraph (1) or (2) in consideration of the following matters:

1. Details and severity of the violation;

2. Duration and frequency of the violation;

3. Scale of the gains from the violation;

4. Profits related to the performance of prohibited acts or the violation of accounting rules by a telecommunications business operator.

(4) A penalty surcharge under paragraph (1) or (2) shall be determined in consideration of paragraph (3) and the detailed guidelines and procedures for determination shall be prescribed by Presidential Decree.

(5) Where a person liable to pay a penalty surcharge under paragraph (1) or (2) fails to do so by the payment deadline, the Korea Communications Commission shall collect 6/100 per annum of the penalty surcharge in arrears as an additional due from the day following the expiry of such payment deadline.

(6) Where a person liable to pay a penalty surcharge under paragraph (1) or (2) fails to do so by the payment deadline, the Korea Communications Commission shall demand him/her to pay it within a prescribed period, and if he/she fails to pay the penalty surcharge and the additional due under paragraph (5) within the prescribed period, it shall collect them in the same manner as dispositions on default of national taxes.

(7) Where the penalty surcharge imposed pursuant to paragraph (1) or (2) is refunded by a court, etc., additional dues shall be paid at a rate of 6/100 per annum for a period from the date when the penalty surcharge is paid to the date of such refund.

Article 54 (Relations with Other Acts)

Where a telecommunications business operator is subject to a measure under Article 52 or a penalty surcharge under Article 53 on the grounds that he/she violates Article 50 (1), the telecommunications business operator shall not be subject to a corrective measure or penalty surcharge under the Monopoly Regulation and Fair Trade Act on the same grounds.

Article 55 (Compensation for Losses)

Where a measure has been taken under Article 52 (1), a person who suffers losses from a prohibited act may claim compensation for losses against the telecommunications business operator who has committed such prohibited act, and the relevant telecommunications business operator may not be exempt from liability to compensate for losses unless he/she is able to prove that there was no malicious intention or negligence.

Article 56 (Quality Improvement, etc. of Telecommunications Services)

(1) A telecommunications business operator shall endeavor to improve the quality of telecommunications services he/she provides.

(2) The Korea Communications Commission shall develop policy measures, such as an evaluation of quality of telecommunications services, in order to improve the quality of telecommunications services and to enhance the conveniences of users.

(3) The Korea Communications Commission may order a telecommunications business operator to submit data necessary for the evaluation of quality of telecommunications services, etc. under paragraph (2).

Article 57 (Preselection Systems)

(1) The Korea Communications Commission shall implement the systems in which users may select in advance the telecommunications business operator who is to provide telecommunications services thereto (hereinafter referred to as “preselection systems“). In such cases, the telecommunications services shall refer to telecommunications services determined by Presidential Decree among the same telecommunications services provided by multiple telecommunications business operators.

(2) A telecommunications business operator shall not force users to select a specified telecommunications business operator in advance, or recommend or induce by unlawful means.

(3) The Korea Communications Commission may designate a specialized institute in charge of the affairs concerning registration of preselection or modification thereto (hereinafter referred to as “preselection registration center“) in order to efficiently and neutrally implement the preselection systems.

(4) Matters necessary for the implementation of the preselection systems, the designation of the preselection registration center and the method of business operations, etc. shall be determined and publicly announced by the Korea Communications Commission.

Article 58 (Telephone Number Portability)

(1) The Korea Communications Commission may establish and implement a plan for telephone number portability (hereafter referred to in this Article as “plan for number portability“) to enable users to retain their telephone numbers when changing from one telecommunications business operator to another.

(2) A plan for number portability shall include the following matters:

1. Kinds of services subject to telephone number portability;

2. Time to start telephone number portability for each service;

3. Matters concerning sharing of expenses incurred in the implementation of a plan for number portability among telecommunications business operators.

(3) The Korea Communications Commission may order the relevant telecommunications business operator to take measures necessary for the implementation of a plan for number portability.

(4) The Korea Communications Commission may designate a specialized institution in charge of registration of number portability and modification thereto (hereinafter referred to as “number portability management institution“) to efficiently and neutrally implement telephone number portability.

(5) Matters concerning the implementation of telephone number portability and matters necessary for the designation of a number portability management institution and the operation of its affairs shall be determined and publicly announced by the Korea Communications Commission.

Article 59 (Limitation on Mutual Holding of Stocks)

(1) Where a common telecommunications business operator under Article 39 (3) 1 or 2 (including a person in a special relation with him/her) holds in excess of 5/100 of the total number of voting stocks issued by another common telecommunications business operator, he/she shall not be allowed to exercise any voting rights in excess of the relevant ceiling.

(2) Paragraph (1) shall not apply to holding relationship between a common telecommunications business operator under Article 39 (3) 1 or 2 and a common telecommunications business operator established by the said common telecommunications business operator by becoming the largest stockholder.

Article 60 (Provision of Number Information Services)

(1) A telecommunications business operator shall provide a service to inform the general public of the telephone numbers of users by means of voice, booklets or the Internet, etc. (hereinafter referred to as “number information service“) by obtaining a consent from users: Provided, That the same shall not apply to minor business determined and publicly announced by the Korea Communications Commission in consideration of the numbers of users, profits, etc.

(2) The Korea Communications Commission may place restrictions on the provision of number information services to the extent necessary to protect personal information.

(3) Matters necessary for the provision of number information services may be prescribed by Presidential Decree.

CHAPTER V.- TELECOMMUNICATIONS EQUIPMENT AND FACILITIES

SECTION 1.- Commercial Telecommunications Equipment and Facilities

Article 61 (Maintainment and Repair of Telecommunications Equipment and Facilities)

A telecommunications business operator shall maintain and repair his/her own telecommunications equipment and facilities in compliance with the technical standards prescribed by Presidential Decree so as to reliably provide his/her telecommunications services.

Article 62 (Reporting and Approval on Installation of Telecommunications Equipment and Facilities)

(1) Where a common telecommunications business operator intends to install or change important telecommunications equipment and facilities, he/she shall submit a prior report to the Korea Communications Commission, as prescribed by Presidential Decree: Provided, That in terms of telecommunications equipment and facilities installed for the first time thanks to a new telecommunications technology, the operator shall obtain approval from the Korea Communications Commission, as prescribed by Presidential Decree.

(2) Scope of important telecommunications equipment and facilities under paragraph (1) shall be prescribed and publicly announced by the Korea Communications Commission.

Article 63 ( Joint Installation of Telecommunications Equipment and Facilities)

(1) A common telecommunications business operator may install and use telecommunications equipment and facilities jointly with other common telecommunications business operators through consultation thereon with them.

(2) Where common telecommunications business operators have consultation under paragraph (1), the Korea Communications Commission may conduct researches on necessary data and provide them to common telecommunications business operators, as prescribed by Presidential Decree.

(3) The Korea Communications Commission may request an institution specialized in telecommunications to conduct researches under paragraph (2) as prescribed by Presidential Decree, so as to efficiently conduct the relevant researches.

(4) In any case described in the following subparagraphs, the Korea Communications Commission may recommend a common telecommunications business operator under paragraph (1) to jointly install telecommunications equipment and facilities, as prescribed by Presidential Decree:

1. Where consultation under paragraph (1) fails to lead to agreement, and the relevant common telecommunications business operator makes a request;

2. Where it is deemed necessary to promote public interests.

(5) Where it is necessary for a common telecommunications business operator to use land, buildings, etc. owned by the State, local governments, public institutions under the Act on the Management of Public Institutions (hereafter referred to as “public institutions” in this Article) or other common telecommunications business operators for the joint installation of telecommunications equipment and facilities, and consultation fails to lead to agreement on the use of such land, buildings, etc., the common telecommunications business operator may request the Korea Communications Commission to provide cooperation for the use of the relevant land, buildings, etc.

(6) Where the Korea Communications Commission receives a request for cooperation under paragraph (5), it may request the State agencies, local governments, the heads of public institutions, or other common telecommunications business operators to respond to the consultation on the use of the relevant land, buildings, etc. with the common telecommunications business operator who submits a request for cooperation under paragraph (5). In such cases, the State agencies, local governments, the heads of public institutions, or other common telecommunications business operators shall respond to the consultation with the common telecommunications business operator unless justifiable grounds exist.

SECTION 2.- Private Telecommunications Equipment and Facilities

Article 64 (Installation of Private Telecommunications Equipment and Facilities)

(1) Any person who intends to install private telecommunications equipment and facilities shall report to the Korea Communications Commission, as prescribed by Presidential Decree. The same shall apply in cases where he/she intends to change any important matter prescribed by Presidential Decree, among the reported matters.

(2) Notwithstanding paragraph (1), other Acts shall apply to private wireless telecommunications equipment and facilities and military telecommunications equipment and facilities, if otherwise prescribed by such other Acts.

(3) Where a person who has reported on the installation of private telecommunications equipment and facilities or reported on the change thereof pursuant to paragraph (1) completes the installation works or installation change works, he/she shall obtain prior confirmation from the Korea Communications Commission, as prescribed by Presidential Decree.

(4) Notwithstanding paragraph (1), private telecommunications equipment and facilities prescribed by Presidential Decree may be installed without reporting.

Article 65 (Restrictions on Use for other Purposes)

(1) No person who installs private telecommunications equipment and facilities shall advocate a third party’s communications through such equipment and facilities or operate such equipment and facilities not in accordance with the purposes of installation: Provided, That this shall not apply in cases where he/she uses them for any of the following purposes to the extent permitted by other Acts or to the extent that does not impede the purposes of installation:

1. Cases of allowing a policeman or a person engaged in disaster relief to use private telecommunications equipment and facilities for the maintenance of public order or for emergency disaster relief;

2. Cases of using private telecommunications equipment and facilities between a person who installs such equipment and facilities and a person in a special business relationship with him/her, as publicly announced by the Korea Communications Commission.

(2) A person who has installed private telecommunications equipment and facilities may provide his/her own telecommunications equipment and facilities, such as ducts or cables, to common telecommunications business operators, as prescribed by Presidential Decree.

(3) Articles 35, 44 (excluding paragraph (5)), 45 through 47 shall apply mutatis mutandis to the provision of equipment and facilities under paragraph (2).

Article 66 (Procurement of Communications in Cases of Emergency)

(1) The Korea Communications Commission may order a person who has installed private telecommunications equipment and facilities to carry out the telecommunications business or other important communications business or to connect his/her telecommunications equipment and facilities with other telecommunications equipment and facilities, at the time of war, an upheaval, natural disaster or any national emergency equivalent thereto or if an outbreak of such emergency is highly apprehended. In such cases, the provisions of Articles 28 through 55 shall apply mutatis mutandis.

(2) If he Korea Communications Commission deems necessary, he/she may require a common telecommunications business operator to carry out the business under paragraph (1).

(3) In cases under paragraph (1), the expenses incurred in carrying out the business and connecting equipment and facilities shall be reimbursed by the Government: Provided, That where private telecommunications equipment and facilities are used for telecommunications services, the expenses incurred therein shall be reimbursed by the common telecommunications business operator who uses such equipment and facilities.

Article 67 (Corrective Order, etc. Issued to Private Telecommunications Equipment and Facilities Installers)

(1) Where a person who has installed private telecommunications equipment and facilities violates this Act or any order under this Act, the Korea Communications Commission may order him/her to take a corrective measure within a prescribed period.

(2) Where a person who has installed private telecommunications equipment and facilities falls under any of the following subparagraphs, the Korea Communications Commission may order him/her to suspend the use of such equipment and facilities for up to one year:

1. Where he/she fails to comply with the corrective order under paragraph (1);

2. Where he/she uses private telecommunications equipment and facilities without confirmation in violation of Article 64 (3);

3. Where he/she advocates a third party’s communications or operates private telecommunications equipment and facilities not in accordance with the purpose of installation in violation of Article 65 (1).

(3) Where it is deemed that private telecommunications equipment and facilities are feared to impede a third party’s telecommunications or to harm a third party’s telecommunications equipment and facilities, the Korea Communications Commission may order the person who has installed such private telecommunications equipment and facilities to suspend the use of his/her equipment and facilities, to reform or repair them, or to take other necessary measures.

SECTION 3.- Integrated Management, etc. of Telecommunications Equipment and Facilities

Article 68 (Installation of Conduits, Ducts, etc.)

(1) Any person who installs or constructs any of the following facilities (hereinafter referred to as “facility installer“) shall consider the opinions of a common telecommunications business operator on the installation of common utility conduits, ducts, etc. that can carry telecommunications equipment and facilities and reflect them on the installation or construction of such facilities: Provided, That this shall not apply in cases where he/she fails to reflect the opinions of the common telecommunications business operator due to any extenuating circumstance:

1. Roads under Article 2 (1) 1 of the Road Act;

2. Railroads under subparagraph 1 of Article 2 of the Railroad Enterprise Act;

3. Urban railroads under subparagraph 1 of Article 3 of the Urban Railroad Act;

4. Industrial complexes under subparagraph 5 of Article 2 of the Industrial Sites and Development Act;

5. Free trade zones under subparagraph 1 of Article 2 of the Act on Designation and Management of Free Trade Zones;

6. Airport zones under subparagraph 9 of Article 2 of the Aviation Act;

7. Harbor zones under subparagraph 4 of Article 2 of the Harbor Act;

8. Other facilities or sites prescribed by Presidential Decree.

(2) A common telecommunications business operator shall present his/her opinions on the installation of common utility conduits, ducts, etc. under paragraph (1) in compliance with the guidelines prescribed by Presidential Decree for installing conduits.

(3) Articles 35, and 44 (excluding paragraph (5)) and 45 through 47 shall apply mutatis mutandis to the provision of common utility conduits, ducts, etc. established under paragraph (1).

(4) Where a facility installer is unable to reflect the opinions of a common telecommunications business operator pursuant to paragraph (1), he/she shall notify the relevant common telecommunications business operator of the reasons therefor within 30 days after the date of receipt of such opinions.

(5) Where a facility installer fails to reflect the opinions of a common telecommunications business operator pursuant to paragraph (1), the relevant common telecommunications business operator may submit a request for mediation to the Korea Communications Commission.

(6) Where the Korea Communications Commission intends to provide mediatory suggestions upon receipt of a request for mediation under paragraph (5), it shall first consult with the head of the relevant central administrative agency.

(7) Matters necessary for mediation under paragraphs (5) and (6) shall be prescribed by Presidential Decree.

Article 69 (Establishment of Building Telecommunications Cabling Systems, etc.)

(1) A building under Article 2 (1) 2 of the Building Act shall be equipped with the building telecommunications cabling systems, and secure a certain space for connection with telecommunications line equipment and facilities.

(2) Matters necessary for the scope of buildings, guidelines for establishing the telecommunications cabling systems, and securing a space for connection with telecommunications line equipment and facilities pursuant to paragraph (1) shall be prescribed by Presidential Decree.

 Article 70 (Integrated Management of Telecommunications Equipment and Facilities, etc.)

(1) Where it is necessary for the efficient management and operation of telecommunications equipment and facilities, the Korea Communications Commission may entrust the integrated management of telecommunications equipment and facilities installed under this Act or any other Act and land, buildings or other structures attached thereto (hereinafter referred to as “telecommunications equipment and facilities, etc.”) to the common telecommunications business operator who has been selected in accordance with the guidelines and procedures prescribed by Presidential Decree (hereinafter referred to as “telecommunications business operator entrusted with the integrated management“).

(2) Where the Korea Communications Commission intends to entrust the integrated management of telecommunications equipment and facilities under paragraph (1), it shall develop a plan for the integrated management of telecommunications equipment and facilities (hereinafter referred to as “integrated management plan“) and obtain approval therefor from the President through consultation with the head of the relevant administrative agency and through deliberation by the State Council.

(3) An integrated management plan shall include the following matters:

1. Subjects, periods, methods and procedures of the integrated management;

2. Matters concerning the management of telecommunications equipment and facilities, etc. after integration;

3. Other matters prescribed by Presidential Decree.

(4) Where the Korea Communications Commission intends to develop an integrated management plan, it shall first consult with the person who installs telecommunications equipment and facilities to be integrated.

Article 71 (Purchase of Telecommunications Equipment and Facilities, etc.)

(1) If it is necessary for the integrated management of telecommunications equipment and facilities, a telecommunications business operator entrusted with the integrated management may claim for the purchase of the relevant telecommunications equipment and facilities. In such cases, the owner of the relevant telecommunications equipment and facilities shall not refuse the claim without any justifiable ground.

(2) Notwithstanding Article 27 of the State Property Act or Article 19 of the Public Property and Commodity Management Act, State-owned or publicly-owned telecommunications equipment and facilities, etc. claimed by a telecommunications business operator entrusted with the integrated management may be sold to the telecommunications business operator entrusted with the integrated management. In such cases, matters necessary for the sales, such as the methods of calculating the sale price, procedures for sales, and payment methods of the purchase prices shall be prescribed by Presidential Decree.

(3) With respect to the methods and guidelines for calculating the sale price of non-state-owned or non-publicly-owned telecommunications equipment and facilities to be purchased by a telecommunications business operator entrusted with the integrated management under paragraph (1), the provisions of Articles 67 (1), 70, 71, 74, 75, 75-2, 76, 77 and 78 (5) through (7) shall apply mutatis mutandis.

SECTION 4.- Installation and Preservation of Telecommunications Equipment and Facilities

Article 72 (Use of Land, etc.)

(1) If it is necessary for the installation of lines, antennas, and their appurtenant facilities to be available for telecommunications services (hereinafter referred to as “lines, etc.”), a common telecommunications business operator may use a third party’s land, or buildings and structures attached thereto, and surface and bottom of the water (hereinafter referred to as “land, etc.”). In such cases, the common telecommunications business operator shall consult with the owners or occupants of the relevant land, etc, in advance.

(2) Where consultation under paragraph (1) fails to lead to agreement or fails to take place, a common telecommunications business operator may use a third party’s land, etc. pursuant to the Act on the Acquisition of Land, etc. for Public Works and the Compensation therefor.

Article 73 (Temporary Use of Land, etc.)

(1) If it is necessary for the measurement of lines, etc. and the installation works or preservation works of telecommunications equipment and facilities, a common telecommunications business operator may temporarily use private, national or public telecommunications equipment and facilities and land, etc. to the extent that does not substantially impede the current use thereof.

(2) No person shall impede the measurement of lines, etc., the installation works or preservation works of telecommunications equipment and facilities and the temporary use of telecommunications equipment and facilities and land, etc. under paragraph (1) without any justifiable ground.

(3) When a common telecommunications business operator intends to temporarily use private, national or public property under paragraph (1), he/she shall notify the occupants, in advance, of the purposes of and period for such use: Provided, That in cases where it is difficult to give prior notice, he/she shall give prompt notice during or after the use, and in cases where he/she is unable to notify the purposes of and period for the use due to an obscurity of an address and residence of occupants, he/she shall publicly announce them.

(4) No period of temporary use of land, etc. under paragraph (1) may exceed six months.

(5) A person who temporarily uses private, national or public telecommunications equipment and facilities or land, etc. under paragraph (1) shall carry with him/her a certificate indicating his/her authority, and present it to the persons concerned.

Article 74 (Entrance to Land, etc.)

(1) A common telecommunications business operator may enter into a third party’s land, etc., to the extent necessary for the measurement, inspection , etc., for the installation and preservation of his/her telecommunications equipment and facilities: Provided, That in cases where the place where he/she intends to enter into is a residential building, a consent from residents shall be obtained.

(2) No person shall impede the measurement, inspection, etc. for the installation or preservation of telecommunications equipment and facilities and a entrance to land, etc. under paragraph (1) without any justifiable ground.

(3) Article 73 (3) and (5) shall apply mutatis mutandis to notification and presentation of a certificate if a person engaged in the measurement, inspection, etc. under paragraph (1) enters private, national or public land, etc.

Article 75 (Request for Removal of Obstacles, etc.)

(1) A common telecommunications business operator may request the owners or users of gas pipes, water pipes, drain pipes, electric lamp lines, power lines or private telecommunications equipment and facilities, which impede or are feared to impede the installation of lines, etc. or common telecommunications equipment and facilities (hereinafter referred to as “obstacles, etc.”) to relocate, reform, or repair them or to take other necessary measures.

(2) A common telecommunications business operator may request the owners or the persons in possession of plants, which impede or are feared to impede the installation or maintenance of lines, etc. or telecommunications to remove such plants.

(3) Where an owner or a persons in possession of a plant fails to comply with the request under paragraph (2), or where extenuating circumstances exist, a common telecommunications business operator may fell or transplant the relevant plant by obtaining permission from the Korea Communications Commission. In such cases, he/she shall promptly notify the owner or the person in possession of the relevant plant.

(4) Where an obstacle, which impedes or is likely to impede the telecommunications equipment and facilities of a common telecommunications business operator, needs to be newly established, enlarged, improved, removed or changed, the owner or user of such obstacles shall consult with the common telecommunications business operator, in advance.

Article 76 (Obligation for Reinstatement)

Where the use of land, etc. under Articles 72 and 73 is terminated or it is no longer necessary to provide land, etc. used for telecommunications services, a common telecommunications business operator shall reinstate the relevant land, etc., and where it is impossible to reinstate the relevant land, etc., he/she shall properly compensate for any losses suffered by the owners or users.

Article 77 (Compensation for Losses)

Where a common telecommunications business operator causes losses to a third party in cases under Article 73 (1), 74 (1) or 75, he/she shall compensate the third party for such losses.

Article 78 (Procedures for Compensation for Losses to Land, etc.)

(1) Where a common telecommunications business operator compensates for any losses pursuant to Article 76 or 77 on any of the following grounds, he/she shall consult with the person who suffered such losses:

1. Temporary use of land, etc. under Article 73 (1);

2. Entrance to land, etc. under Article 74 (1);

3. Relocation, reform or repair of obstacles, etc. or removal of plants under Article 75;

4. Impossibility of reinstatement under Article 76.

(2) When consultation under paragraph (1) fails to lead to agreement or fails to take place, an application for adjudication shall be filed with the competent Land Expropriation Commission under the Act on the Acquisition of Land, etc. for Public Works and the Compensation therefor.

(3) Except as otherwise prescribed by this Act, the Act on the Acquisition of Land, etc. for Public Works and the Compensation therefor shall apply mutatis mutandis to the standards, methods and procedures for compensation for losses, etc. to land, etc. under paragraph (1), and an application for adjudication under paragraph (2).

Article 79 (Protection of Telecommunications Equipment and Facilities)

(1) No person shall destroy telecommunications equipment and facilities, nor obstruct the flow of telecommunications by impeding the functions of telecommunications equipment and facilities by means of contacting other objects with them or by any other means.

(2) No person may contaminate telecommunications equipment and facilities or damage measurement marks of telecommunications equipment and facilities by means of throwing any object at the telecommunications equipment and facilities or tying an animal, vessel or a log raft thereto.

(3) In order to protect telecommunication cables or supplementary facilities laid on the seabed (hereafter referred to as “submarine cable“), a common telecommunications business operator may file an application for the designation of a submarine cable zone to the Korea Communications Commission.

(4) The Korea Communications Commission upon receipt of application under paragraph (3), shall examine the necessity for such designation and may designate a submarine cable zone and publicly announce it, following consultation with the head of the relevant central administrative agency.

(5) Matters concerning application for designation of a submarine cable zone, methods and procedures for designation and public announcement, methods of installing warning signs, etc. shall be prescribed by Presidential Decree.

Article 80 (Relocation, etc. of Equipment and Facilities.)

(1) Where telecommunications equipment and facilities of a common telecommunications business operator impede the use of land, etc. in which they are located due to changes to the purposes or methods of using such land, etc. or land adjacent thereto, the owner or occupant of such land, etc. may request the common telecommunications business operator to relocate the telecommunications equipment and facilities, and take other necessary measures to remove the impediment.

(2) A common telecommunications business operator shall, upon receipt of a request under paragraph (1), take necessary measures unless he/she has a difficulty in business operations or a technical difficulty to take such measures.

(3) Expenses incurred in the measures under paragraph (2) shall be reimbursed by a person who has made measures necessary to relocate the relevant equipment and facilities or remove the impediment after installation of the equipment and facilities: Provided, That in cases where a person who is liable to reimburse the expenses is the owner or occupant of the relevant land, etc. and falls any of the following subparagraphs, a common telecommunications business operator may reduce or exempt expenses to be reimbursed by such owner or occupant, taking into account the amount of compensation at the time of the installation of the equipment and facilities and the period for the installation thereof:

1. Where a common telecommunications business operator develops and implements plans for the relocation of the relevant telecommunications equipment and facilities or for the removal of the impediments;

2. Where the relocation of the relevant telecommunications equipment and facilities or removal of the impediments is beneficial for other telecommunications equipment and facilities;

3. Where the State or a local government requests the relocation of the relevant telecommunications equipment and facilities or removal of the impediments;

4. Where telecommunications equipment and facilities installed in private land is relocated because they substantially impede the use of such private land.

Article 81 (Cooperation, etc. with Other Organizations)

A common telecommunications business operator may ask the relevant public agencies for a cooperation, in case where the operation of vehicles, vessels, airplanes and other carriers is necessary for the installation and preservation of his/her telecommunications equipment and facilities. In such cases, upon receipt of a request for cooperation, the public agency shall comply with the request unless justifiable grounds exist.

Article 82 (Inspection, Reporting, etc.)

(1) Where it is necessary for the development of telecommunications policies or where it is prescribed by Presidential Decree, the Korea Communications Commission may inspect the current installation status, books or documents of a person who has installed telecommunications equipment and facilities or require him/her to report on his/her equipment and facilities.

(2) Where a person has installed telecommunications equipment and facilities in violation of this Act, the Korea Communications Commission may order him/her to remove the relevant equipment and facilities or take other necessary measures.

CHAPTER VI.- SUPPLEMENTARY PROVISIONS

Article 83 (Protection of Confidentiality of Communications)

(1) No person may infringe or divulge the confidentiality of communications carried by telecommunications business operators.

(2) No person who is or has been engaged in telecommunications services may divulge a third party’s confidential information with respect to communications obtained in the course of performance of his/her duties.

(3) A telecommunications business operator may comply with a request for the perusal or provision of any of the following data (hereinafter referred to as “provision of communications data“) from a court, a prosecutor, the head of an investigative agency (including the head of a military investigative agency, the Commissioner of the National Tax Service and the Commissioner of a Regional Tax Office; hereinafter the same shall apply) or the head of an intelligence and investigation agency, who intends to collect information or intelligence in order to prevent any threat to a trial, an investigation (including the investigation of a violation committed by means of a telephone, the Internet, etc. among the offenses prescribed in Article 10 (1), (3) and (4) of the Punishment of Tax Evaders Act), the execution of a sentence or the guarantee of the national security:

1. Names of users;

2. Resident registration numbers of users;

3. Addresses of users;

4. Phone numbers of users;

5. User identification word (referring to the identification codes of users used to identify the rightful users of computer systems or communications networks);

6. Dates on which users subscribe or terminate their subscriptions.

(4) The request for provision of communications data under paragraph (3) shall be made in writing (hereinafter referred to as “written request for provision of data“), which states a reason for such request, relation with the relevant user and the scope of necessary data: Provided, That where it is impossible to make a request in writing due to an urgent reason, such request may be made without resorting to writing, and when such reason disappears, a written request for provisions of data shall be promptly filed with the telecommunications business operator.

(5) Where a telecommunications business operator provides communications data according to the procedures under paragraphs (3) and (4), he/she shall retain the ledgers prescribed by Presidential Decree, which contain necessary matters, such as the records that communications data are provided, and the related materials, such as the written requests for provision of data.

(6) A telecommunications business operator shall report on the current status, etc. of provision of communications data, to the Korea Communications Commission twice a year, in accordance with the methods prescribed by Presidential Decree, and the Korea Communications Commission may ascertain whether the details of a report submitted by a telecommunications business operator are correct and the management status of related materials under paragraph (5).

(7) A telecommunications business operator shall, in accordance with the methods prescribed by Presidential Decree, notify the details entered in the ledgers under paragraph (5) to the head of the central administrative agency whereto a person requesting the provision of communications data under paragraph (3) belongs: Provided, That in cases where a person who requests the provision of communications data is a court, the relevant telecommunications business operator shall notify the Minister of the Court Administration thereof.

(8)  A telecommunications business operator shall establish and operate a department in exclusive charge of the affairs related to users’communication secrets; and the matters concerning the function, composition, etc. of the relevant development shall be prescribed by Presidential Decree.

(9) Matters necessary for the scope of persons having authority to grant approval on the written requests for provision of data shall be prescribed by Presidential Decree.

Article 84 (Information, etc. of Caller’s Phone Number)

(1) A telecommunications business operator may, upon request from a receiver, inform him/her of a caller’s phone number: Provided, That this shall not apply in cases where the caller expresses his/her intent refusing the transmission of his/her phone number.

(2) Where any of the following cases occurs, a telecommunications business operator may inform a receiver a caller’s phone number, etc, notwithstanding the proviso to paragraph (1);

1. Where the receiver requests to inform the caller’s phone number under conditions and procedures prescribed by Presidential Decree in order to protect the receiver from verbal abuse, threats, harassment, etc.;

2. Where it is prescribed by Presidential Decree for national security, crime prevention, disaster relief, etc. when providing phone services with special numbers.

(3) No person shall fabricate or falsify a caller’s phone number while making phone calls for the purpose of making financial profits by deceiving other persons or of harming them by verbal abuse, threats, harassment, etc.

(4) No person shall provide services for forging or falsely indicating a caller’s phone number for profit-making: Provided, That this shall not apply to any case having justifiable grounds, such as for public interests or offering convenience to the receiver, etc.

Article 85 (Restriction on, and Suspension of Business)

The Korea Communications Commission may order a telecommunications business operator to fully or partially restrict or suspend telecommunications services in order to secure major telecommunications, as prescribed by Presidential Decree at the time of war, an upheaval, natural disaster or any national emergency equivalent thereto or if an outbreak of such emergency is highly apprehended or if extenuating circumstances exist.

Article 86 (Approval for International Telecommunications Services)

(1) When any special provisions concerning international telecommunications services are included in treaties or agreements signed by the Government, those provisions shall govern.

(2) Where a telecommunications business operator intends to enter into an agreement on international telecommunications services prescribed by Presidential Decree, he/she shall obtain approval from the Korea Communications Commission after satisfying the requirements prescribed by Presidential Decree. The same shall apply to an amendment to or revocation of such agreement.

(3) Where a telecommunications business operator who provides common telecommunications services intends to enter into an agreement for the adjustments of international telecommunications service charges with a foreign government or a foreigner, he/she shall report to the Korea Communications Commission: Provided, That this shall not apply to the telecommunications business operator who satisfies the requirements prescribed by Presidential Decree for the size of telecommunications equipment and facilities, capital, whether to grant phone numbers, etc.

(4) Where a telecommunications business operator who provides common telecommunications services intends to enter into an agreement for the adjustments of roaming service charges, he/she shall obtain approval from the Korea Communications Commission, notwithstanding paragraph (3).

(5) Matters necessary for reporting under paragraph (3) or approval under paragraph (4) shall be determined and publicly announced by the Korea Communications Commission.

Article 87 (Cross-Border Provision of Common Telecommunications Services)

(1) Where a person intends to provide common telecommunications services from abroad into Korea without establishing any place of business in Korea (hereinafter referred to as “cross-border provision of common telecommunications services“), he/she shall enter into an agreement for cross-border provision of common telecommunications services with a domestic common telecommunications business operator or special category telecommunications business operator who provides the same common telecommunications services.

(2) Articles 28, 32, 33, 45 through 47, 50 through 55, 83 through 85, 88, 92 of this Act and Article 44-7 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. shall apply mutatis mutandis to the provision of services under an agreement concluded by a common telecommunications business operator or a special category telecommunications business operator under paragraph (1).

(3) Where a person who intends to provide cross-border common telecommunications services under paragraph (1), or a common telecommunications business operator or special category telecommunications business operator who has entered into an agreement with such person, violates the relevant provisions which apply mutatis mutandis under paragraph (2), the Korea Communications Commission may revoke approval under Article 86 (2), or issue an order to fully or partially suspend the cross-border provision of common telecommunications services under the relevant agreement for up to one year.

(4) Guidelines and procedures for imposing dispositions under paragraph (3) and other necessary matters shall be prescribed by Presidential Decree.

Article 88 (Reporting, etc. on Statistics)

(1) A telecommunications business operator shall report to the Korea Communications Commission on the statistics on the provision of telecommunications services prescribed by Presidential Decree, such as the current status of equipment and facilities, subscription record and current status of users for each type of telecommunications services, and the data related to telephone traffic required for billing and collections and retain the related data, as prescribed by Presidential Decree.

(2) A common telecommunications business operator and stockholders thereof, or a special category telecommunications business operator and stockholders thereof shall submit the related data necessary for a verification of matters under Article 8, as prescribed by Presidential Decree.

(3)          In order to verify the matters under paragraph (2), or to examine the genuineness of the data submitted, The Korea Communications Commission may request the administrative agencies and other related agencies to examine the data submitted or to submit the related materials. In such cases, the agencies in receipt of such request shall comply with it unless justifiable grounds exist.

Article 89 (Hearings)

Where the Korea Communications Commission intends to impose any of the following dispositions, it shall hold a hearing:

1. To fully or partially cancel the license of a common telecommunications business operator under Article 20 (1);

2. To fully or partially cancel registration of a special category telecommunications business operator under Article 27 (1);

3. To fully or partially cease the value-added telecommunications business under Article 27 (2);

4. To revoke approval under Article 87 (3).

Article 90 (Imposition, etc. of Penalty Surcharge)

(1) Where a business suspension order to be issued to a telecommunications business operator who falls under each subparagraph of Article 20 (1), each subparagraph of Article 27 (1) or any subparagraph of Article 27 (2), causes substantial inconvenience to the users, etc. of the relevant business or threatens to impair public interests, the Korea Communications Commission may impose a penalty surcharge in an amount not exceeding 3/100 of the turnover calculated under Presidential Decree in lieu of the business suspension order. In such cases, if the telecommunications business operator refuses to submit materials relating to the calculation of the profit or submits any false material, the profit may be estimated based on the financial statements and other accounting materials of the relevant telecommunications business operator and the business operators providing the same or similar types of services, and the materials concerning the current status of business operations, such as the number of subscribers, service charges, etc.: Provided, That where there is no profit or it is difficult to calculate the profit, as prescribed by Presidential Decree, a penalty surcharge not exceeding one billion won may be imposed.

(2) Where an order to suspend the use of private telecommunications equipment and facilities under Article 67 (2) causes substantial inconvenience to the users of telecommunications services provided with the relevant private telecommunications equipment and facilities or threatens to impair public interests, the Korea Communications Commission may impose a penalty surcharge not exceeding one billion won in lieu of the order to suspend the use thereof.

(3) Detailed guidelines for the imposition of penalty surcharges under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

(4) The provisions of Article 53 (5) through (7) shall apply mutatis mutandis to additional dues, demands, and collection of penalty surcharges under paragraphs (1) and (2).

Article 91 (Extension of Payment Deadline of Penalty Surcharges and Payment in Installments)

(1) Where a penalty surcharge to be paid by a telecommunications business operator under Articles 53 and 90 exceeds an amount prescribed by Presidential Decree, and where deemed that the person liable to pay a penalty surcharge has difficulty in paying it in a lump sum on any of the following grounds, the Korea Communications Commission may either extend the payment deadline, or permit him/her to pay it in installments. In such cases, the Commission may, if deemed necessary, require him/her to provide a security therefor:

1. Where he/she suffers a severe financial loss due to natural disasters or fire, etc;

2. Where his/her business faces a serious crisis due to an aggravation of business environments;

3. Where it is expected that he/she will be in great financial difficulty if he/she pays the penalty surcharge in a lump sum.

(2) Matters necessary for an extension of the payment deadline of penalty surcharges, the payment in installments and the provision of a security shall be prescribed by Presidential Decree.

Article 92 (Corrective Orders, etc.)

(1) The Korea Communications Commission shall issue a corrective order to a telecommunications business operator who falls under any of the following subparagraphs:

1. Where he/she violates the provisions of Article 3, 4, 6 through 11, 14 through 24, 26 through 28, 30 through 44, 47 through 49, 51, 56 through 62, 64 through 67, 69, 73 through 75, 79 or 82 through 88, or the orders issued under these provisions;

2. Where the procedures for his/her business operations are deemed to inflict significant harm on the users’ interests;

3. Where he/she fails to promptly take measures necessary for removing an obstruction, such as repair, etc. when an accident, etc. impedes the provision of telecommunications services.

(2) The Korea Communications Commission may order a telecommunications business operator to conduct any of the following matters, when necessary for the development of telecommunications:

1. Integrated operation and management of telecommunications equipment and facilities;

2. Expansion of communications equipment and facilities for the enhancement of social welfare;

3. Establishment and management of communications networks for important communications to achieve efficient performance of the State’s functions;

4. Other matters prescribed by Presidential Decree.

(3) The Korea Communications Commission may order a person who falls under any of the following subparagraphs to suspend the provision of telecommunications services or to take measures necessary for the removal of telecommunications equipment and facilities:

1. A person who operates a common telecommunications business without obtaining a license under Article 6 (1);

2. A person who operates a special category telecommunications business without registration under Article 21 (1);

3. A person who operates the value-added telecommunications business without reporting thereon under Article 22 (1).

Article 93 (Delegation of Authority)

The Korea Communications Commission may partially delegate its authority under this Act to the head of its affiliated agency, as prescribed by Presidential Decree.

CHAPTER VII.- PENAL PROVISIONS

 Article 94 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than five years or by a fine not exceeding 200 million won:

1. A person who operates the common telecommunications business without obtaining a license under Article 6 (1);

2. A person who operates the common telecommunications business, in violation of an order to partially cancel his/her license under Article 20 (1);

3. A person who obstructs the flow of telecommunications by impeding a function of telecommunications equipment and facilities by means of damaging telecommunications equipment and facilities, or contacting the objects with them or by other means, in violation of Article 79 (1);

4. A person who divulges a third party’s confidential information with respect to communications obtained in the course of performance of his/her duties, in violation of Article 83 (2);

5. A person who provides communication data, and a person who receives communications data, in violation of Article 83 (3).

Article 95 (Penal Provisions)

Any of the following persons shall be punished by imprisonment for not more than three years or by a fine not exceeding 150 million won: (Amended by Act nº 10656, May 19, 2011)

1. A person who refuses to provide telecommunications services without justifiable grounds, in violation of Article 3 (1);

2. A person who violates a disposition taken to suspend his/her business operation under Article 20 (1);

3. A person who operates the special category telecommunications business without registration under Article 21 (1);

3-2. A person who conducts value-added telecommunications business without conducting registration under Article 22 (2);

4.  A person who operates a special category telecommunications business, in violation of an order to partially cancel registration under Article 27 (1);

5. A person who fails to comply with an order under Article 52 (1);

6. A person who obstructs the measurement of lines, etc. and the installation and preservation works for telecommunications equipment and facilities under Article 73 (2);

7. A person who violates the confidentiality of communications of telecommunications business operators or divulges such confidential information, in violation of Article 83 (1).

Article 96 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than two years or by a fine not exceeding 100 million won:

1. A person who fails to obtain a revised license under Article 16;

2. A person who fails to obtain approval under Articles 17 (1) and 42 (4);

3. A person who fails to obtain authorization under the main sentence of the part other than each subparagraph of Article 18 (1) or approval under Article 19 (1);

4. A person who integrates telecommunications networks, appoints executives, acquires business, executes an agreement for merger or sale of equipment and facilities, or takes follow-up measures for the establishment of a company prior to obtaining authorization, in violation of Article 18 (9):

5. A person who fails to comply with an order to take measures to protect users under Article 19 (2);

6. A person who operates a value-added telecommunications business without reporting under Article 22 (1);

7. A person who violates a disposition taken to suspend his/her business operation under Article 27 (1);

8. A person who fails to comply with an order to discontinue his/her business under Article 27 (2);

9. A person who fails to purchase a guarantee insurance policy, in violation of Article 32 (3)

10. A person who discloses, uses or provides information, in violation of the main sentence of Article 43 (1) or paragraph (2) of the same Article;

11. A person who fails to comply with an order to restrict or suspend telecommunications services under Article 85;

12. A person who fails to obtain approval or approval for an amendment or revocation, under Article 86 (2) or (4).

Article 97 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year or by a fine not exceeding 50 million won:

1. A person who fails to comply with an order under Article 10 (5), 12 (2) (including cases where the provisons apply mutatis mutandis under Article 4 (4) of the Addenda of the Telecommunications Business Act amended by Act nº 5385) or 18 (8);

2. A person who fails to report under the proviso to Article 18 (1);

3. A person who fails to file a revised registration or a revised report under Article 23;

4. A person who fails to report under Article 24;

5. A person who violates a disposition taken to suspend his/her business operation under Article 27 (2);

6. A person who provides telecommunications services without submitting a report or revised report under Article 28 (1) and (2) (proviso) or without obtaining authorization or revised authorization under Article 28 (2);

7. A person who advocates a third party’s communications through telecommunications services provided by a telecommunications business operator or provides such services for a third party’s communications, in violation of the body of Article 30.

Article 98 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year or by a fine not exceeding 100 million won:

1. A person who installs or changes important telecommunications equipment and facilities without reporting under the main sentence of Article 62 (1) or a person who installs telecommunications equipment and facilities without obtaining approval under the proviso to Article 62 (1);

2. A person who installs private telecommunications equipment and facilities without submitting a report or a revised report under Article 64 (1);

3. A person who advocates a third party’s communications through private telecommunications equipment and facilities or operates such equipment and facilities not in accordance with the purposes of installation, in violation of Article 65 (1);

4. A person who fails to comply with an order to carry out the telecommunications business or other important communications business or to connect his/her equipment and facilities with other telecommunications equipment and facilities under Article 66 (1);

5. A person who fails to comply with an order to suspend the use under Article 67 (2) or an order under Article 67 (3);

6. A person who fails to comply with an order to remove telecommunications equipment and facilities or an order to take other necessary measures under Article 82 (2).

Article 99 (Penal Provisions)

A person who commits a prohibited act under each subparagraph of Article 50 (1) (excluding any act of providing telecommunications services in a manner different from the terms and conditions of use under Article 50 (1) 5) shall be punished by a fine not exceeding 300 million won.

Article 100 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by a fine not exceeding 50 million won:

1. A person who fabricates or falsifies a caller’s phone number while making a phone call for the purpose of making financial profits by deceiving other persons or of harming them by verbal abuse, threats, sexual harassment, etc., in violation of Article 84 (3);

2. A person who provides services for fabricating for falsifying a caller’s phone number for profit-making, in violation of Article 84 (4).

Article 101 (Penal Provisions)

A person who contaminates telecommunications equipment and facilities or damages measurement marks of telecommunications equipment and facilities, in violation of Article 79 (2) shall be punished by a fine or a minor fine not exceeding one million won.

Article 102 (Attempted Criminals)

An attempted criminal under subparagraphs 3 and 4 of Article 94 and subparagraph 7 of Article 95 shall be punished.

Article 103 (Joint Penal Provisions)

When a representative of a corporation or an agent, an employee or any other employed person of a corporation or an individual commits any violation under Articles 94 through 100 in connection with the business of such corporation or individual, not only shall such violator be punished accordingly, but the corporation or individual shall be punished by a fine under the relevant provisions, respectively: Provided, That the same shall not apply in cases where the corporation or individual has paid due attention to or diligently supervised the relevant business in order to prevent such violation.

Article 104 (Fines for Negligence)

(1) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 30 million won:

1. A person who impedes a temporary use of private telecommunications equipment and facilities or land, etc. without any justifiable ground, in violation of Article 73 (2);

2. A person who impedes an entrance to land, etc. without any justifiable ground, in violation of Article 74 (2);

3. A person who refuse to relocate, reform or repair obstacles, etc. or to take other necessary measures under Article 75 (1) or to remove plants under Article 75 (2) without any justifiable ground.

(2) A person who fails to apply for authorization on the conclusion of an agreement, in violation of Article 44 (2) shall be punished by a fine for negligence not exceeding 200 million won.

(3) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 15 million won:

1. A person who fails to report on the conclusion of an agreement under Article 44 (1);

2. A person who fails to report under the main sentence of Article 86 (3).

(4) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 10 million won:

1. A person who fails to report under Article 10 (2) or fails to comply with a request for the provision of necessary data or an order to appear under Article 11 (3) or (4);

2. A person who fails to notify users by not later than 60 days before a scheduled date of suspension or discontinuance, in violation of Article 19 (1);

3. A person who fails to report under Article 26;

4. A person who violates duties to protect users under Article 32 (1);

5. A person who fails to comply with an order to submit data issued by the Korea Communications Commission under Article 35 (5) or submits false data;

6. A person who fails to publicly announce the technical standards, the requirements for the provision and use, and other standards required for the creation of environments for fair competition, in violation of Article 42 (4);

7. A person who fails to comply with the matters publicly announced under Article 48 (2), in violation of Article 48 (3);

8. A person who refuses, avoids or impedes an investigation under Article 51 (2);

9. A person who refuses, avoids or impedes an order to submit necessary data or articles under Article 51 (5), or temporary custody of such data or articles;

10. A person who fails to comply with an order to submit data under Article 56 (3);

11. A person who uses private telecommunications equipment and facilities without verification, in violation of Article 64 (3);

12. A person who refuses, interferes with or avoids an inspection under Article 82 (1);

13. A person who fails to report under Article 82 (1) or falsely reports;

14. A person who fails to retain the related materials or retains false materials, in violation of Article 83 (5);

15. A person who fails to notify details of the ledgers which include the provision of communications data, etc. to the head of a central administrative agency, in violation of Article 83 (7);

16. A person who fails to report or submit data under Article 88, or falsely reports or submits false materials;

17. A person who fails to comply with a corrective order under Article 92.

(5) Fines for negligence under paragraphs (1) through (4) shall be imposed and collected by the Korea Communications Commission, as prescribed by Presidential Decree.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Term of Validity)

The amended provisions of Article 38 (2) through (4) shall be valid for three years from the date this Act enters into force.

Article 3 (Transitional Measures concerning Scope of Application)

The former provisions of the Addenda shall apply even after this Act enters into force.

Article 4 (Transitional Measures concerning Licenses of Common Telecommunications Business Operators)

A common telecommunications business operator who has obtained a license under the former provisions to operate common telecommunications business as at the time this Act enters into force shall be deemed a common telecommunications business operator who has obtained a license under the amended provisions of Article 6 to operate common telecommunications business under the amended provisions of Article 5 (2).

Article 5 (Transitional Measures concerning Guarantee Insurance)

A special category telecommunications business operator registered under the former provisions as at the time this Act enters into force who has collected service charges from users in advance, and then purchased a guarantee insurance policy to provide services, shall be deemed to have purchased a guarantee insurance policy under the amended provisions of Article 32 (3).

Article 6 (Transitional Measures concerning Penal Provisions, etc.)

In applying penal provisions or provisions concerning the fine for negligence against a violation committed before this Act enters into force, the former provisions shall apply: Provided, That this Act shall apply in cases where the application of the provisions of this Act is favorable to a violator.

Article 7 Omitted.

Article 8 (Transitional Measures following Amendment to Other Acts)

In applying penal provisions or provisions concerning fines for negligence against a violation of the former Framework Act on Telecommunications (referring to the Framework Act on Telecommunications before the amendment under Article 7 (5) of this Addenda), the former Framework Act on Telecommunications shall apply.

Article 9 (Relations with Other Acts and Subordinate Statutes)

A citation of the former Framework Act on Telecommunications and the former Telecommunications Business Act or any provision thereof by any other Act or subordinate statute in force as at the time this Act enters into force shall be deemed a citation of this Act or a corresponding provision thereof in lieu of the former provisions, if such corresponding provision exists in this Act.

ADDENDA (Act nº 10656, May. 19, 2011)

(1) (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

(2) (Transitional Measures concerning Registration of Value-added Telecommunications Business)

Among those who conduct value-added telecommunications business in accordance with the former provisions as at the time this Act enters into force, any person who needs to make registration in accordance with the amended provisions of Article 22 (2) shall make registration within six months after this Act enters into force.

ADDENDA (Act nº 11201, Jan. 17, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Notification)

The amended provisions of Article 32-2 shall apply, starting with the first person who enters into a contract for the use of telecommunications services with a telecommunications business operator after this Act enters into force.