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Enforcement Decree Of The Telecommunications Business Act


Published: 2012-02-28

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purpose)   print
The purpose of this Decree is to prescribe the matters delegated by the Telecommunications Business Act and matters necessary for the enforcement thereof.
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 Article 2 (Details of Universal Service)   print
(1) Details of universal service under Article 4 (3) of the Telecommunications Business Act (hereinafter referred to as the "Act") shall be as follows:
1. Wire telephone services;
2. Telephone services for emergency communications;
3. Reduction of or exemption from charges for the disabled and the low-income bracket, etc.
(2) More details of universal service under paragraph (1) shall be as follows:
1. Wire telephone services: Any of the following telephone services among telephone services within an area (hereinafter referred to as "telephone service area") announced by the Korea Communications Commission in consideration of methods of use, conditions, etc.:
(a) Urban telephone services: Telephone services mediating communications using subscribed telephones (excluding island communications services under item (c); hereinafter the same shall apply);
(b) Urban public telephone services: Telephone services mediating communications using public telephones;
(c) Island communications services: Telephone services mediating communications by radio between the land and islands or between islands;
2. Telephone services for emergency communications: Any of the following telephone services for the maintenance of social order and the safety of human life:
(a) Telephone services of special numbers determined and announced by the Korea Communications Commission among basic telecommunications services;
(b) Radio telephone services of ships: Telephone services mediating communications between the land and ships or between ships, among basic telecommunications services;
3. Reduction of or exemption from charges for the disabled and the low-income bracket, etc.: Any of the following telephone services for the disabled and the low-income bracket, etc. for the improvement of social welfare:
(a) Urban telephone services and telephone services between telephone service areas (hereinafter referred to as "toll call services");
(b) Telephone number directory services, services incidental to urban telephone services and toll call services;
(c) Mobile telephone services, personal portable communications services, IMT 2000 services and radio paging services among basic telecommunications services;
(d) Internet subscriber connection services;
(e) Internet telephone services.
(3) A person eligible for the reduction of or exemption from rates under paragraph (2) 3 shall be any of the following persons: Provided, That the reduction of or exemption from charges for persons falling under subparagraph 8 shall be limited to mobile telephone services, personal portable communications services and IMT2000 services.
1. The disabled registered pursuant to Article 32 of the Act on Welfare of Persons with Disabilities or welfare facilities for the disabled and welfare organizations for the disabled under the same Act;
2. Special schools under the Elementary and Secondary Education Act;
3. Children's welfare facilities under the Child Welfare Act;
4. A recipient under the National Basic Living Security Act: Provided, That in cases of urban telephone services, toll call services and Internet subscriber connection services, referring to a household in which such recipient is included:
5. The Korea Disabled Veterans Organization and 4ㆍ19 Democratic Revolution Association under the Act on the Establishment of Associations by Persons, etc. of Distinguished Services to the State;
6. Soldiers and policemen injured in war, soldiers and policemen injured on duty, those injured in the 4ㆍ19 Revolution, public officials injured on duty, injured persons with special distinguished service to the development of the State and society, and those injured in the 6ㆍ18 Liberation, among persons who rendered distinguished services to the State under the Act on the Honorable Treatment and Support of Persons, etc. of Distinguished Services to the State;
7. Those injured in the 5ㆍ18 Democratization Movement, among the persons of distinguished services to the 5ㆍ18 Democratization Movement under the Act on the Honorable Treatment of Persons of Distinguished Services to the 5ㆍ18 Democratization Movement;
8. Members of a family to which any of the following persons belongs from among the working poor class under subparagraph 11 of Article 2 of the National Basic Living Security Act. In such cases, the number of members of a family eligible for reduction or exemption per family shall be determined and announced by the Korea Communications Commission:
(a) A person participating in a project necessary for self-support under Article 9 (5) of the National Basic Living Security Act;
(b) A patient of a rare and obstinate disease under subparagraph 3 (d) of attached Table 2 of the Enforcement Decree of the National Health Insurance Act, who is exempted from his/her sharing of costs;
(c) A person who is subsidized expenses incurred in giving infant care pursuant to Article 34 (1) of the Infant Care Act and a person who is subsidized expenses incurred in the rearing of children pursuant to Article 34 -2 (1) of the same Act;
(d) A person who is subsidized expenses incurred in providing early childhood education pursuant to Article 26 (1) of the Early Childhood Education Act;
(e) A person who receives a disability allowance pursuant Article 49 of the Act on Welfare of Persons with Disabilities and a person who receives a child disability allowance pursuant to Article 50 (1) of the same Act;
(f) A person eligible for protection under Article 5 of the Single-Parent Family Support Act. In such cases, a person whose amount of income acknowledged is not more than 130 percent of the minimum cost of living shall be included;
(g) A person who receives a disability pension pursuant to Article 10 of the Act on Pensions for Persons with Disabilities
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 3 (Designation of Telecommunications Business Operators Providing Universal Service)   print
(1) Where the Korea Communications Commission intends to designate a telecommunications business operator (hereinafter referred to as a "business operator providing pervasive services") providing universal service pursuant to Article 4 (4) of the Act, it may designate such telecommunications business operator after hearing an opinion of the relevant telecommunications business operator.
(2) A telecommunications business operator designated as a business operator providing universal service pursuant to paragraph (1), shall submit a plan for providing universal service, including the method for providing the relevant service and the expenses incurred in providing the relevant service every year by the end of the year before the year he/she provides the relevant service to the Korea Communications Commission.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 4 (Compensation for Losses Incurred in Providing Universal Service)   print
(1) The Korea Communications Commission may order telecommunications business operators other than business operators providing universal service share funds (hereinafter referred to as the "compensation for losses incurred in providing universal service") to compensate all or some of losses incurred by business operators providing universal service in providing universal service based on their sales.
(2) A business operator providing universal service who intends to be compensated for the loss incurred in providing universal service shall submit a report on the actual results of the provision of universal service, including expenses incurred, income and losses, etc. due to the provision of universal service to the Korea Communications Commission, within three months after the end of the relevant fiscal year.
(3) When the Korea Communications Commission deems it necessary to verify a report on the actual results of the provision of universal service under paragraph (2), it may request a specialized institution to examine such report.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 5 (Objects of Computation of Compensation for Losses Incurred from Universal Service)   print
(1) The scope of universal service subject to the computation of compensation for losses incurred from universal service shall be as follows:
1. Urban telephone services in the area where the expenses (expenses computed by the method publicly announced by the Korea Communications Commission, taking into account the population density, number of lines, efficiency of operation of communications network, etc.) incurred in providing the services, among the urban telephone services referred to in Article 2 (2) 1 (a), exceed the income (including indirect conveniences, such as the effects of increased brand value, subscribers preference, etc. from provision of universal service; hereinafter the same shall apply in subparagraph 2 of this Article and Article 6 (1));
2. Urban public telephone services in the area where expenses incurred in providing services, among the urban public telephone services referred to in Article 2 (2) 1 (b), exceed the income;
3. Communications services in islands referred to in Article 2 (2) 1 (c);
4. Radio telephone services for vessels referred to in Article 2 (2) 2 (b).
(2) "Telecommunications business operator prescribed by Presidential Decree" in Article 4 (2) 1 of the Act means a value-added telecommunications business operator or regional radio paging business operator.
(3) "Amount prescribed by Presidential Decree" in Article 4 (2) 2 of the Act means 30 billion won.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 6 (Methods for Computation of Compensation of Losses Incurred from Universal Service, etc.)   print
(1) Losses incurred in providing universal service falling under any of the subparagraphs of Article 5 (1) shall be the amount left by subtracting income from expenses incurred in providing such service.
(2) A provisional compensation for losses incurred from universal service shall be computed by multiplying the amount computed pursuant to paragraph (1) by the rate of compensation for losses determined and publicly announced by the Korea Communications Commission: Provided, That in cases of radio telephone services for ships under Article 5 (1) 4, the target amount of management efficiency determined and publicly announced by the Korea Communications Commission shall be deemed a provisional compensation for losses incurred from universal service.
(3) Compensation for losses incurred from universal service shall be the amount left by subtracting the following amount from a provisional compensation for losses incurred from universal service computed pursuant to paragraph (2):
1. An amount shared by a telecommunications business operator providing universal service falling under any of the subparagraphs of Article 5 (1) based on the sales of telecommunications services (excluding value-added telecommunications services) other than the relevant universal service;
2. An amount computed by the Korea Communications Commission, taking into account the ability of a telecommunications business operator who shares compensation for losses incurred from universal service (hereinafter referred to as "business operator who shares losses").
(4) A business operator who shares losses shall share compensation for losses incurred from universal service computed pursuant to paragraph (3) in proportion to his/her sales of telecommunications services (excluding value-added telecommunications services).
(5) Other detailed matters necessary for the percentage of the reduction of or exemption from rates for telephone services for the disabled and the low-income bracket, etc. and methods, etc. for computing compensation for losses incurred from universal service shall be determined and publicly announced by the Korea Communications Commission.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
CHAPTER II TELECOMMUNICATIONS BUSINESSES
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 Article 7 Deleted. <by Presidential Decree No. 22424, Oct. 1, 2010>   print
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 Article 8 (Scope of Premises)   print
The meanings of "premises prescribed by Presidential Decree" in Article 5 (3) 2 of the Act shall be as follows:
1. One building;
2. One lot (limited to a lot owned by one person or two or more persons) and a building in such lot;
3. Two or more buildings occupied by one person and such building lots (limited to cases where the lineal distance between the buildings is less than 500 meters);
4. Buildings or lots and adjacent buildings or lots referred to in subparagraphs 1 through 3, which are areas announced by the Korea Communications Commission.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 9 (Applications for Licenses, etc.)   print
(1) A person who intends to obtain a license under Article 6 (1) of the Act may file an application in the name of the representative of a corporation or the representative of stockholders, etc. of a corporation to be established. <Amended by Presidential Decree No. 22424, Oct. 1, 2010>
(2) The term "matters prescribed by Presidential Decree" in Article 6 (2) 4 of the Act means the following matters: <Amended by Presidential Decree No. 22424, Oct. 1, 2010>
1. Matters concerning the adequacy of investment plans to upgrade telecommunications equipment and facilities;
2. Matters concerning the stability and expertise of plans to provide telecommunications services;
3. Matters determined and publicly announced by the Korea Communications Commission as equivalent to those under subparagraph 1 or 2 .
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 Article 10 (Documents, etc. to be Attached When Applying for Licenses)   print
(1) A person who intends to obtain a license to engage in basic telecommunications business pursuant to Article 6 (1) of the Act shall submit an application for a license to engage in basic telecommunications business to the Korea Communications Commission along with the following documents:
1. The articles of association of a corporation (including a corporation to be incorporated; hereinafter the same shall apply in this Article);
2. A list of stockholders of a corporation or documents concerning the ownership of stocks, etc. of stockholders, etc. thereof;
3. A business plan.
(2) The Korea Communications Commission in receipt of an application for a license pursuant to paragraph (1) shall confirm a certificate of registered matters of a corporation through the joint use of administrative information under Article 36 (1) of the Electronic Government Act.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 11 Deleted. <by Presidential Decree No. 22424, Oct. 1, 2010>   print
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 Article 12 (Issuance of Licenses, etc.)   print
(1) Where the Korea Communications Commission grants permission for basic telecommunications business pursuant to Article 6 (1) of the Act or grants permission for changes pursuant to Article 16 (1) of the Act, it shall enter the following matters in the register of permission for basic telecommunications business operators and issue a license (including a license to execute changes) of a basic telecommunications business operator:
1. A license number and the date of permission;
2. A trade name or title and the name of its representative;
3. Business area;
4. The seat of the main office;
5. Capital or the appraised value of assets;
6. Details of principal facilities for business and a place where they are installed;
7. Matters concerning technical human resources;
8. Conditions for permission.
(2) Where a basic telecommunications business operator loses a license issued pursuant to paragraph (1) or a license is worn out, he/she may file an application for re-issuance of the license with the Korea Communications Commission along with the grounds therefor.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 13 (Criteria for Examination of Public Interest, etc.)   print
(1) "Public interest prescribed by Presidential Decree" in the part other than the subparagraphs of Article 10 (1) of the Act means national security, public peace and the maintenance of order.
(2) "Important managerial matters prescribed by Presidential Decree, such as the appointment or dismissal of executives of the relevant basic telecommunications business operator and the transfer or acquisition of business" in Article 10 (1) 3 of the Act means the following:
1. Appointment or dismissal of a representative director of a basic telecommunications business operator, or of at least one third of the executives thereof;
2. Transfer and acquisition of basic telecommunications business;
3. A basic telecommunications business operator's launching of a new basic telecommunications business.
(3) "Cases prescribed by Presidential Decree" in Article 10 (1) 4 of the Act means any of the following cases:
1. Where the management rights of a basic telecommunications business operator are actually changed because stockholders, other than the largest stockholder of the basic telecommunications business operator, have agreed to jointly exercise voting rights;
2. Where the management rights of a holding company (referring to a holding company under subparagraph 1-2 of Article 2 of the Monopoly Regulation and Fair Trade Act; hereinafter the same shall apply) of a basic telecommunications business operator are actually changed.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 14 (Scope of Common Telecommunications Business Operator Subject to Examination on Degree of Public benefits)   print
The scope of a common telecommunications business operator who shall submit a report or may request an examination under Article 10 of the Act shall be as follows: <Amended by Presidential Decree No. 22424, Oct. 1, 2010; Presidential Decree No. 22605, Dec. 31, 2010>
1. A common telecommunications business operator operating and managing important communications under Article 64 (1);
2. A common telecommunications business operator in possession of an artificial satellite which has a space station under subparagraph 30 of Article 29 of the Enforcement Decree of the Radio Waves Act;
3. A common telecommunications business operator designated and publicly announced by the Korea Communications Commission under Article 39 (3).
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 Article 15 (Procedures for Examination of Public Interest, etc.)   print
(1) Any person who intends to make a report or make a request for examination pursuant to Article 10 (2) and (3) of the Act shall submit documents in which the following matters are entered to the Korea Communications Commission:
1. The name and address of a reporting person or an applicant for examination (in cases of a corporation, the name and address of the corporation and the name and address of its representative);
2. The intent of and reasons for reporting or requesting an examination;
3. Detailed content of a fact falling under any of the subparagraphs of Article 10 (1) of the Act.
(2) Where the Korea Communications Commission deems that the supplementation of submitted documents is required, it may request the supplementation thereof within an appropriate period fixed.
(3) Unless extenuating circumstances exist, the Public Interest Examination Committee (hereinafter referred to as the "Public Interest Examination Committee") under Article 10 (1) of the Act shall notify the Korea Communications Commission of the results of examination on matters referred thereto, within three months from the date the Korea Communications Commission refers matters thereto pursuant to Article 10 (4) of the Act.
(4) The Korea Communications Commission shall notify a reporting person or a requester for examination of the results of examination on the public interest under paragraph (3).
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 16 (Organization, etc. of Public Interest Examination Committee)   print
(1) "Relevant central administrative agencies prescribed by Presidential Decree" in the part other than the subparagraphs of Article 11 (2) of the Act means the following agencies:
1. Ministry of Strategy and Finance;
2. Ministry of Foreign Affairs and Trade;
3. Ministry of Justice;
4. Ministry of National Defense;
5. Ministry of Public Administration and Security; and
6. Ministry of Knowledge Economy.
(2) The term of office of members shall be two years, and they may be reappointed: Provided, That the term of office of a member who is a public official shall be his/her period of service in a position.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 17 (Operation, etc. of Public Interest Examination Committee)   print
(1) The chairperson of the Public Interest Examination Committee shall represent the Public Interest Examination Committee and preside over its affairs.
(2) If the chairperson is unable to perform his/her duties due to unavoidable circumstances, a member previously designated by the chairperson shall perform the duties of the chairperson on his/her behalf.
(3) The chairperson shall convene and preside over meetings of the Public Interest Examination Committee.
(4) The chairperson shall hold meetings of the Public Interest Examination Committee when a majority of the incumbent members attend meetings and pass resolutions by the consent of a majority of the members present.
(5) The Public Interest Examination Committee shall have one executive secretary in order to conduct its affairs, and he/she shall be designated by the chairperson from among the public officials belonging to the Korea Communications Commission.
(6) In addition to matters provided for in paragraphs (1) through (5), matters necessary for the operation of the Public Interest Examination Committee shall be determined by the chairperson through its resolutions.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 18 (Imposition and Payment, etc. of Charges for Compelling Execution)   print
(1) When the Korea Communications Commission determines the amount of a charge for compelling execution under Article 13 of the Act, it shall take into account reasons for non-execution of a corrective order and the value of benefits, etc. obtained as a result of non-execution of the corrective order.
(2) The date a corrective order under Article 13 (2) of the Act should be executed shall be as follows:
1. In cases of disposal of stocks: The date of issuance of stock certificates;
2. In cases of changes in the details of a contract: The date of conclusion of a changed contract;
3. In cases of the suspension of any act harming the public interest: The date the relevant act is suspended;
4. In cases of the fulfillment of conditions: The date the relevant conditions are fulfilled.
(3) Where the Korea Communications Commission intends to impose a charge for compelling execution under Article 13 of the Act, it shall advise in writing by specifying the amount of such charge per day, reasons for the imposition thereof, a deadline for payment, an agency receiving payments, a method for raising an objection, and an agency that receives such objection, etc.
(4) A person notified pursuant to paragraph (3) shall pay a charge for compelling execution within 30 days from the date he/she receives such notification: Provided, That where he/she is unable to pay the charge for compelling execution within the period due to force majeure or other unavoidable circumstances, he/she shall pay such charge within 30 days from the date such reason disappears.
(5) Where a corrective order is not executed though 90 days have passed from the expiration date of the period set by the corrective order, the Korea Communications Commission may collect a charge for compelling execution every 90 days computing from such expiration date.
(6) Article 49 shall apply mutatis mutandis to a request for the payment of a charge for compelling execution.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 19 (Permission for Changes)   print
(1) A person who intends to obtain permission for changes in basic telecommunications business under Article 16 (1) of the Act shall submit to the Korea Communications Commission an application for permission for changes in basic telecommunications business, along with documents by which it may confirm a plan for change. <Amended by Presidential Decree No. 23642, Feb. 28, 2012>
(2) Detailed matters necessary for judging standards for permission for changes, procedures and methods for making an application therefor under Article 16 (1) of the Act shall be determined and publicly announced by the Korea Communications Commission. <Amended by Presidential Decree No. 23642, Feb. 28, 2012>
(3) Deleted. <by Presidential Decree No. 22424, Oct. 1, 2010>
(4) "Important matters prescribed by Presidential Decree" in Article 16 (1) of the Act means the following: <Amended by Presidential Decree No. 23642, Feb. 28, 2012>
1. Matters concerning changes in the details of basic telecommunications business permitted pursuant to Article 6 (1) of the Act (including the resumption of business subject to the partial revocation of permission under the main sentence of Article 20 (1) of the Act);
2. Matters concerning the terms of permission under Article 6 (4) of the Act.
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 Article 20 (Application for Authorization for Acquisition and Merger, etc.)   print
(1) A person who intends to obtain authorization for the acquisition of all or part of the business of a basic telecommunications business operator pursuant to Article 18 (1) 1 of the Act shall submit an application for authorization for the acquisition of basic telecommunications business to the Korea Communications Commission, along with the following documents:
1. A copy of a contract for transfer or acquisition;
2. The articles of association of a transferor or a transferee, and evidential documents related to transfer or acquisition;
3. A list of stockholders of a transferee or documents concerning the ownership of stocks, etc. of stockholders, etc. thereof;
4. The current status of business operations of a transferor or a transferee;
5. A business plan after acquisition.
(2) A person who intends to obtain authorization for merger of a corporation that is a basic telecommunications business pursuant to Article 18 (1) 2 of the Act, shall submit to the Korea Communications Commission an application for authorization for the merger of basic telecommunications business along with the following documents:
1. A copy of a contract for merger;
2. The articles of association of the parties to merger and evidential documents related to the merger thereof;
3. A list of stockholders of a corporation that survives after merger or a corporation incorporated by merger or documents concerning the ownership of stocks, etc. of stockholders, etc. thereof;
4. The current status of business operations of the parties to merger;
5. A business plan after merger.
(3) A basic telecommunications business operator who intends to obtain authorization for the sale of telecommunications links and facilities pursuant to Article 18 (1) 3 of the Act shall submit to the Korea Communications Commission an application for authorization for the sale of telecommunications links and facilities along with the following documents:
1. A copy of a contract for sale or purchase of telecommunications links and facilities and evidential documents related thereto;
2. The articles of association of a seller or a purchaser and evidential documents related to sale and purchase;
3. A list of stockholders of a purchaser or documents concerning the ownership of stockholders, etc. thereof;;
4. The current status of business operations of a seller or a purchaser;
5. A business plan after sale.
(4) A person who intends to own at least 15 percent of the total number of issued stocks of a basic telecommunications business operator, or to be the largest stockholder of a basic telecommunications business operator pursuant to Article 18 (1) 4 of the Act, shall submit to the Korea Communications Commission an application for authorization for the ownership of stocks (the largest stockholder) of basic telecommunications business, along with the following documents:
1. Evidential documents related to the acquisition of stocks, such as a copy of a contract for acquisition of the stocks;
2. The articles of association of a purchaser of stocks or a person who intends to be the largest stockholder, and the other company;
3. The current status of stockholders of a purchaser of stocks or a person who intends to be the largest stockholder, and the other company;
4. The current status of business operations of a purchaser of stocks or a person who intends to be the largest stockholders, and the other company;
5. Purposes and reasons to acquire stocks, and analysis of effects following the acquisition of stocks;
6. A plan for serving concurrently as an executive (only applicable to cases where a person plans to serve concurrently as an executive of the other company);
7. A business plan after the acquisition of stocks (only applicable to cases where a person intends to be the largest stockholder).
(5) A person who intends to obtain authorization for the acquisition of stocks or the conclusion of an agreement pursuant to Article 18 (1) 5 of the Act, he/she shall submit an application for authorization to the Korea Communications Commission, along with the following documents:
1. Evidential documents related to acts to control the management rights, such as a copy of a contract for the acquisition of stocks or a copy of an agreement;
2. The articles of association of a purchaser of stocks or the party to an agreement and the other company;
3. The current status of stockholders of a purchaser of stocks or the party to an agreement and the other company;
4. The current status of business operations of a purchaser of stocks or the party to an agreement and the other company;
5. Objectives of and reasons for the acquisition of stocks or the conclusion of an agreement and analysis of effects thereof;
6. A plan for serving concurrently as an executive (only applicable to cases where a person plans to serve concurrently as an executive of the other company);
7. A business plan after the acquisition of stocks or the conclusion of an agreement.
(6) "Cases prescribed by Presidential Decree" in Article 18 (1) 5 of the Act means any of the following cases:
1. Where the same person intends to actually exercise the largest stockholder's voting rights of a basic telecommunications business operator by acquiring stocks issued by the largest stockholder (including those issued by persons who have special relations with the largest stockholder) solely or jointly with persons who have special relations with him/her;
2. Where a person intends to acquire stocks more than voting rights of the largest stockholder of a basic telecommunications business operator jointly with persons (including persons who have special relations with him/her) who have the same object to control the management of the basic telecommunication business operator;
3. Where a person intends to actually control the management rights of a basic telecommunications business operator through leasing business, delegation of management or other agreements similar thereto with the basic telecommunications business operator or the largest stockholder thereof;
4. Where a person intends to jointly exercise voting rights more than the voting rights of the largest stockholder of a basic telecommunications business operator by concluding an agreement with other stockholders other than the largest stockholder of the basic telecommunications business operator;
(7) A basic telecommunications business operator who intends to obtain authorization for the incorporation of a corporation to provide some of basic telecommunications services he/she has provided with permission pursuant to Article 18 (1) 6 of the Act shall submit to the Korea Communications Commission an application for authorization for the incorporation of a corporation to provide basic telecommunications services, along with the following documents:
1. The articles of association of a corporation to be incorporated;
2. A list of stockholders of a corporation to be incorporated or documents concerning the ownership of stocks, etc. thereof;
3. The current status of business operations of services he/she intends to provide (only applicable to a basic telecommunications business operator who is providing services that he/she intends to provide by incorporating a corporation);
4. A business plan of a corporation to be incorporated.
(8) Applications for authorization under paragraphs (1) through (5) and (7) and documents referred to in each subparagraph of the same paragraphs may be submitted in an electronic form.
(9) The Korea Communications Commission in receipt of an application for authorization for acquisition, merger, sale, change of the largest stockholder, the acquisition of stocks, the conclusion of an agreement or incorporation of a corporation pursuant to paragraphs (1) through (7), shall confirm a certificate of registered matters of a corporation of the party to acquisition by transfer, merger, sale, change of the largest stockholder, the acquisition of stocks, the conclusion of an agreement or the incorporation of a corporation through the joint use of administrative information under Article 36 (1) of the Electronic Government Act.
(10) Where the Korea Communications Commission grants authorization for acquisition, merger or the incorporation of a corporation under paragraph (1), (2) or (7), it shall issue a license to engage in basic telecommunications business.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 21 (Standard for Major Telecommunications Line Equipment and Facilities)   print
The term "major telecommunications line equipment and facilities prescribed by Presidential Decree" in the proviso to the part other than the subparagraphs of Article 18 (1) of the Act means the exchange facilities, transmission facilities and line facilities under Article 3 (1) 8 through 10 of the Regulations on Technical Standards for Broadcasting Communications Equipment and Facilities, the total sale value of which exceeds five billion won. <Amended by Presidential Decree No. 22424, Oct. 1, 2010; Presidential Decree No. 22616, Jan. 4, 2011>
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 Article 22 (Reporting on Sale of Telecommunications Links and Facilities)   print
A person who intends to report the sale of telecommunications links and facilities pursuant to the proviso to the part other than the subparagraphs of Article 18 (1) of the Act shall submit to the Korea Communications Commission a report (including a report in an electronic form) on sale of telecommunications links and facilities, along with the following documents (including electronic documents);
1. Evidential documents related to sale, such as a copy of a contract for sale of telecommunications links and facilities;
2. Types, details and the selling price of equipment and facilities to be sold;
3. A plan for providing services and protection of users after sale.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 23 Deleted. <by Presidential Decree No. 22424, Oct. 1, 2010>   print
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 Article 24 (Application for Approval for Suspension, etc. of Business)   print
A person who intends to obtain approval for the suspension or closure of business pursuant to Article 19 (1) of the Act shall submit the following documents to the Korea Communications Commission by no later than 60 days before the scheduled date of such suspension or closure:
1. Details of his/her business intended to be suspended or closed, and a map of his/her business area;
2. Documents stating the details of the major telecommunications equipment and facilities relating to his/her business intended to be suspended or closed;
3. A license (only applicable to the closure of the whole business);
4. A statement giving the reason;
5. Documents concerning the notification of a fact of suspension or closure;
6. Documents in which a plan for the protection of users following suspension or closure is stated.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 25 (Guidelines and Procedures, etc. for Cancellation of Permission, etc.)   print
(1) Guidelines for the disposition of the cancellation of permission, cancellation of registration, closure or suspension of business under Articles 20 (2) and 27 (3) of the Act shall be as specified in attached Table1. <Amended by Presidential Decree No. 23642, Feb. 28, 2012>
(2) Deleted. <by Presidential Decree No. 22424, Oct. 1, 2010>
(3) Where the Korea Communications Commission has made the disposition of the cancellation of permission, cancellation of registration, closure or suspension of business under paragraph (1), it shall announce such fact without delay, and inform the relevant telecommunications business operator thereof in writing. <Amended by Presidential Decree No. 23642, Feb. 28, 2012>
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 Article 26 (Application for Registration)   print
(1) A person who intends to register special category telecommunications business pursuant to Article 21 (1) of the Act shall submit to the Korea Communications Commission an application for registration (including electronic documents) of a special category telecommunications business operator, along with the following documents (including electronic documents):
1. A plan for operation of special category telecommunication business;
2. The articles of association of a corporation (including a corporation to be incorporated; hereinafter the same shall apply in this Article);
3. Details of principal facilities for business, a place where they are installed, and a schematic diagram of telecommunications networks;
4. Terms and conditions of use, including details related to the protection of users, the current status of the establishment of a consumer protection organization and a plan for operation;
(2) The Korea Communications Commission in receipt of an application for registration pursuant to paragraph (1) shall confirm a certificate of registered matters of a corporation and national technical qualification certificates of its technical human resources through the joint use of administrative information under Article 36 (1) of the Electronic Government Act: Provided, That where an applicant does not consent to the confirmation of a national technical qualification certificate, he/she shall be ordered to attach a copy of such document to an application for registration.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 27 (Issuance of Certificates of Registration, etc.)   print
(1) The Korea Communications Commission in receipt of an application for registration pursuant to Article 26 (1) shall ascertain whether such application meets the requirements for registration under Article 28, and then enter the following matters in the register of special category telecommunications business operators, and issue a certificate of registration of a special category telecommunications business operator to an applicant within 30 days from the date of application for registration:
1. The registration number and the date of registration;
2. The trade name or title, and the name of its representative;
3. The seat of the main office;
4. Capital;
5. Types of services to be provided;
6. Details of principal facilities for business and a place where they are installed;
7. Matters concerning technical human resources;
8. Terms of registration.
(2) Where the Korea Communications Commission deems that supplementation of or revision to an application for registration under Article 26 is required, it may request such supplementation or revision within a period fixed not exceeding seven days, and where an applicant requests such supplementation or revision, it may extend the period for supplementation or revision. In such cases, the period required for supplementation or revision shall not be included in the period for processing referred to in paragraph (1).
(3) Where a special category telecommunications business operator loses a certificate of registration issued pursuant to paragraph (1) or it is worn out, he/she may request the Korea Communications Commission to reissue such certificate.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 28 (Requirements for Registration of Special Category Telecommunications Business)   print
Requirements for the registration of special category telecommunications business under Article 21 (5) of the Act shall be as specified in attached Table 2.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 29 (Procedures for Reporting Value-Added Telecommunications Business, etc.)   print
(1) A person who intends to report value-added telecommunications business pursuant to the forepart of Article 22 (1) of the Act shall submit a report (including a report in an electronic form) of value-added telecommunications business to the Korea Communications Commission, along with the following documents (including electronic documents):
1. A schematic diagram of telecommunications networks (only applicable to cases where the Korea Communications Commission requests him/her to submit such schematic diagram because it deems it necessary to report new special value-added telecommunications services);
2. A detailed statement on the formulation of measures for the protection of personal information (only applicable to cases where he/she deals with personal information).
(2) A person who intends to register special value-added telecommunications business pursuant to Article 22 (2) of the Act shall submit an application for registration of a special value-added telecommunications business operator (including an application therefor in an electronic form) to the Korea Communications Commission along with the following documents (including electronic documents):
1. The articles of association (only applicable to a corporation, and including a corporation to be incorporated);
2. Documents that may prove that he/she meets the requirements for registration referred to in the subparagraphs of Article 22 (2) of the Act.
(3) The Korea Communications Commission in receipt of a report under paragraph (1) or an application for registration under paragraph (2) shall confirm a certificate of registered matters of a corporation through the joint use of administrative information under Article 36 (1) of the Electronic Government Act.
(4) Where there is any defect in the details of a report on value-added telecommunications business under paragraph (1) or an application for registration of a special value-added telecommunications business operator under paragraph (2) or accompanying documents are incomplete, the Korea Communications Commission may request a reporter or applicant to supplement such report or application within a period fixed not exceeding ten days, and where a reporter or applicant requests it to extend the period for supplementation, it may extend the period for supplementation.
(5) When the Korea Communications Commission receives a report on value-added telecommunications business under paragraphs (1), it shall issue a certificate of report on value-added telecommunications business to a reporter.
(6) When the Korea Communications Commission receives an application for registration pursuant to paragraph (2), it shall confirm whether such application meets the requirements for registration under paragraph (9), enter the following in the register of special value-added telecommunications business operators and issue a certificate of registration of a special value-added telecommunications business operator to the applicant therefor within 30 days from the date of application.
1. The registration number and the date of registration;
2. A trade name or title, and the name of the representative thereof;
3. The seat of the main office;
4. Capital;
5. Kinds of services to be provided;
6. Details of main facilities for business and a place where they are installed;
7. Terms of registration.
(7) Where a value-added telecommunications business operator loses a certificate of a report issued pursuant to paragraph (5) or a certificate of registration issued pursuant to paragraph (6) or it is worn out, he/she may request the Korea Communications Commission to reissue it.
(8) "Matters prescribed by Presidential Decree, including a business plan, etc." in Article 22 (2) 4 of the Act means a business plan and a plan for the protection of users.
(9) Requirements for registration of a special value-added telecommunications business operator under Article 22 (2) of the Act shall be as specified in attached Table 2-2.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 30 (Exemption from Reporting Value-Added Telecommunications Business Operators)   print
(1) "Small value-added telecommunications business operator who meets standards prescribed by Presidential Decree" in the latter part of Article 22 (1) of the Act means a value-added telecommunications business operator who provides value-added telecommunications services via the Internet and whose capital is not more than 100 million won.
(2) Where a value-added telecommunications business operator exempted from reporting pursuant to paragraph (1) has capital exceeding 100 million won, he/she shall report thereon pursuant to the forepart of Article 22 (1) of the Act within one month from the date such reason arises.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 30-2 (Disqualifications for Registration)   print
"Investor prescribed by Presidential Decree" in Article 22-2 of the Act means any of the following persons:
1. Where a person in question has the largest share of stocks by totaling stocks, etc. owned by him/her and persons who have special relations with him/her who fall under any of the subparagraphs of Article 8 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act by his/her reckoning of stocks in whose name they may be, on the basis of issued stocks with voting rights or equity stakes (hereinafter referred to as "stocks, etc." in this Article) of the relevant corporation, such person in question;
2. Any person who owns at lest ten percent of stocks, etc. of the relevant corporation by his/her reckoning of stocks in whose name they may be, or a person who falls under any of the subparagraphs of Article 9 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, who is a stockholder who exercises his/her influence over key managerial matters of such corporation by means of the appointment or dismissal of executives, etc.
[This Article Newly Inserted by Presidential Decree No. 23293, Nov. 14, 2011]
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 Article 31 (Modification of Registered or Reported Matters)   print
(1) "Matters prescribed by Presidential Decree" in Article 23 of the Act means the following:
1. A trade name, title and address;
2. Representative;
3. Types of services to be provided;
4. Capital (only applicable to a special category telecommunications business operator);
5. Technical human resources (only applicable to a special category telecommunications business operator);
6. Terms and conditions of use (only applicable to a special category telecommunications business operator who has entered into an agreement with a basic telecommunications business operator providing telecommunications services by using the assigned frequency pursuant to the Radio Waves Act);
7. Matters concerning changes in the details of special category telecommunications business or value-added telecommunications business under Article 21 (1) and the forepart of Article 22 (1) or paragraph (2) of the same Article of the Act (including the resumption of business subject to the partial cancellation of registration or the partial discontinuance of business under the main sentence of Article 27 (1) of the Act and the main sentence of Article 27 (2) of the Act).
(2) Where any person intends to change matters falling under any of the subparagraphs of paragraph (1), he/she shall submit an application for registration of changes in special category telecommunications business, a report on changes in value-added telecommunication business or an application for registration of changes in special value-added telecommunications business (including an application or a report prepared in an electronic form) to the Korea Communications Commission along with documents (including electronic documents) that may confirm changed matters. <Amended by Presidential Decree No. 23293, Nov. 14, 2011>
(3) Where the Korea Communications Commission received an application for modification of registration or a report on modification and has registered or accepted such modification pursuant to paragraph (2), it shall issue a certificate of registration or a certificate of report in which modified matters have been entered.
(4) The Korea Communications Commission in receipt of an application for modification of registration or a report on modification pursuant to paragraph (2) shall confirm a certificate of registered matters of a corporation or a business registration certificate through the common use of administrative information under Article 36 (1) of the Electronic Government Act: Provided, That where a reporter does not consent to the confirmation of a business registration certificate, it shall have him/her attach such certificate.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 32 (Reports on Transfer of Business, etc.)   print
(1) A person who intends to report the transfer or acquisition of special category telecommunications business or value-added telecommunications business pursuant to Article 24 of the Act shall submit a report on transfer or acquisition (including a report prepared in an electronic form) to the Korea Communications Commission within 30 days from the date he/she enters into a contract for transfer or acquisition, along with the following documents (including electronic documents):
1. A copy of a contract for transfer or acquisition;
2. Documents provided for in each subparagraph of Article 26 (1) or 29 (1) and (2);
3. A certificate of registration or a certificate of report.
(2) A person who intends to report the merger of a corporation that is a special category telecommunications business operator or a value-added telecommunications business operator shall submit a report on merger (including a report prepared in an electronic form) to the Korea Communications Commission within 30 days from the date he/she enters into a contract for merger, along with the following documents (including electronic documents):
1. A copy of a contract for merger;
2. Documents referred to in the subparagraphs of Article 26 (1) or 29 (1) and (2); and
3. A certificate of registration or a certificate of report.
(3) A person who intends to report the inheritance of value-added telecommunications business pursuant to Article 24 of the Act shall submit a report on inheritance (including a report prepared in an electronic form) to the Korea Communications Commission within 30 days from the date the cause of such inheritance arises, along with documents (including electronic documents) proving that he/she is an inheritor/inheritress.
(4) The Korea Communications Commission in receipt a report pursuant to paragraphs (1) through (3) shall confirm a certificate of registered matters of a corporation of a transferee or the party to merger (referring to a corporation that survives or a corporation newly incorporated) and national technical qualification certificates of its technical human resources or a certificate on records of family relations of an inheritor/inheritress through the joint use of administrative information under Article 36 (1) of the Electronic Government Act: Provided, That where a reporter does not consent to such confirmation, it shall have him/her attach the relevant documents (referring to a copy of a national technical qualification certificate or a certificate on records of family relations) to the report.
(5) When the Korea Communications Commission receives a report on the transfer, acquisition or merger of special category telecommunications business or value-added telecommunications business pursuant to paragraph (1) or (2), it shall issue a certificate of registration of a special category telecommunications business operator, a certificate of a report on value-added telecommunications business, or a certificate of registration of a special value-added telecommunications business operator.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 33 (Reports on Suspension or Disclosure of Business, etc.)   print
A person who intends to repot the suspension or discontinuance of special category telecommunications business or value-added telecommunications business pursuant to Article 26 (1) of the Act shall submit a report on the suspension or discontinuance of special category telecommunications business or value-added telecommunications business to the Korea Communications Commission along with documents proving that he/she has notified users of the suspension or discontinuance of such business by no later than 15 days before a scheduled date of such suspension or discontinuance: Provided, That where it may confirm information on attached documents through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, such confirmation may take the place of attached documents.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
CHAPTER III TELECOMMUNICATIONS SERVICES
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 Article 34 (Authorization for Terms and Conditions of Use)   print
(1) Services which require a basic telecommunications business operator to obtain authorization for the terms and conditions of use (including authorization for amendment) pursuant to the main sentence of Article 28 (2) of the Act shall be as follows:
1. Among services provided by a basic telecommunications business operator who has the largest market share in the total domestic sales based on the sales of each service of the preceding year, service the sales of which in the preceding year is equal to or higher than the amount of each service determined and announced by the Korea Communications Commission;
2. Where a basic telecommunications business operator that provides service referred to in subparagraph 1 has consummated a business combination under Article 12 (1) 1 or 4 of the Monopoly Regulation and Fair Trade Act with another basic telecommunications business operator, service referred to in subparagraph 1 provided by such another basic telecommunications business operator.
(2) The Korea Communications Commission shall designate and publicly announce basic telecommunication business operators and services falling under paragraph (1) by December 31 every year: Provided, That in cases of basic telecommunications business operators and services falling under paragraph (1) 2, it shall designate and publicly announce them without delay after the date of reporting a business combination under the same subparagraph.
(3) A basic telecommunications business operator who intends to modify insignificant matters determined by the Korea Communications Commission may report such modifications to the Korea Communications Commission, notwithstanding the provisions of paragraph (1) on the authorization for modification of the terms and conditions of use.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 35 (Application for Authorization for Terms and Conditions of Use)   print
A person who intends to make a report (including a report on modification) on the terms and conditions of use concerning telecommunications services pursuant to Article 28 (1) of the Act or the proviso to paragraph (2) of the same Article (2), or to obtain authorization (including authorization for modification) pursuant to the main sentence of Article 28 (2) of the Act, shall submit the terms and conditions of use in which the following matters are included to the Korea Communications Commission, along with evidentiary data for the calculation of charges under Article 28 (4) of the Act:
1. Types and details of telecommunications services;
2. An area to which telecommunications services are provided;
3. Charges for telecommunications services, including fees and actual costs;
4. Matters necessary for the responsibilities of telecommunications business operators and users;
5. Other matters necessary for the provision or use of the relevant telecommunications services.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 36 (Objects of Reduction of or Exemption from Charges)   print
Telecommunications services for which charges may be reduced and exempted pursuant to Article 29 of the Act shall be as follows:
1. Telecommunications services for communications concerning the saving of human life and property from danger and disaster or for communications of victims of disaster;
2. Where dedicated line communications of an agency exclusively responsible for affairs concerning military affairs, public peace and order or national security and part of an independent communications network of the State, a local government or public institution under the Act on the Management of Public Institutions are integrated into a telecommunications network of a basic telecommunications business operator, telecommunications services for all or some of dedicated line communications used by such agency;
3. Telecommunications services for communications necessary for military operations in wartime;
4. Telecommunications services for newspapers under the Act on the Promotion of Newspapers, etc., news communications under the Act on Promotion of News Communications, and communications for reporting of broadcast stations under the Broadcasting Act;
5. Telecommunications services for communications necessary for the promotion of utilization and diffusion of information communications;
6. Telecommunications services for communications of persons who require protection to promote social welfare;
7. Telecommunications services for communications necessary for the promotion of exchange and cooperation between South and North Korea;
8. Telecommunications services for communications especially necessary for management of postal services.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 37 (Provision of Transmission and Line Facilities, etc.)   print
A general wire broadcasting business operator, transmission network business operator or relay wire broadcasting business operator under the Broadcasting Act may provide a basic telecommunications business operator with transmission and line facilities or wire broadcasting facilities (hereinafter referred to as "transmission and line facilities, etc.") by means of any of the followings pursuant to Article 31 (1) of the Act:
1. Sale or lease of transmission and line facilities, etc.;
2. Entrusted provision of telephone call or telephone exchange services by using transmission and line facilities, etc.;
3. Methods discussed and determined by and between a general wire broadcasting business operator, transmission network business operator or relay wire broadcasting business operator and a basic telecommunications business operator, which apply correspondingly to subparagraphs 1 and 2.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 37-2 (Prepaid Calling Services and Purchase of Guarantee Insurance Policies)   print
(1) A basic telecommunications business operator who intends to engage in business providing telecommunications services on a prepaid basis (hereinafter referred to as "prepaid calling services") pursuant to the main sentence of Article 32 (3) of the Act shall submit the following data to the Korea Communications Commission: Provided, That in cases of a special category telecommunications business operator, he/she shall submit them to the Director General of the Central Radio Management Office:
1. A copy of a guarantee insurance policy;
2. Data on the total amount of charges for prepaid calling services (hereinafter referred to as "amount of prepaid calling cards issued") in the relevant year;
3. Data on methods for using prepaid calling services;
4. Other data determined and publicly announced by the Korea Communications Commission, such as guidelines for dealing with affairs for prepaid calling services and consumer protection.
(2) A telecommunications business operator who intends to provide prepaid calling services under paragraph (1) shall observe the following guidelines:
1. He/she shall provide prepaid calling services within the insurance period of a guarantee insurance;
2. In order to additionally provide prepaid calling services during the insurance period of a guarantee insurance, he/she shall provide prepaid calling services within the amount of prepaid calling cards issued which are actually used;
3. Where he/she intends to change the total amount of prepaid calling cards issued, he/she shall renew a guarantee insurance contract by no later than 30 days before he/she changes such amount. In such cases, he/she shall submit a copy of the relevant renewed guarantee insurance policy to the Korea Communications Commission or the Director General of the Central Radio Management Office within 7 days after such renewal;
4. Where he/she intends to continue to provide services after the period for coverage of a guarantee insurance expires, he/she shall renew a guarantee insurance contract by no later than 30 days before the period of coverage expires. In such cases, he/she shall submit data determined by the Korea Communications Commission, including balance sheets, etc. to the Korea Communications Commission or the Director General of the Central Radio Management Office within seven days after such renewal;
5. He/she shall take measures necessary to enable users of prepaid calling services to easily understand matters falling under paragraph (1) 3 and 4.
(3) "Amount calculated according to standards set by Presidential Decree" in the main sentence of Article 32 (3) of the Act means an amount calculated according to standards publicly announced by the Korea Communications Commission, in consideration of capital of a prepaid calling service provider, the amount of prepaid calling cards issued, etc., exceeding 50 percent of the total amount of prepaid calling cards issued.
(4) "Cases prescribed by Presidential Decree" in the proviso to Article 32 (3) of the Act means any of the following cases:
1. Where the average annual sales of telecommunications services provided by a telecommunications business operator during the last three years exceed 30 billion won;
2. Where the total amount of prepaid calling cards issued is not more than 10 percent of the sales of telecommunications services provided by a telecommunications business operator in the preceding year;
3. Where prepaid calling services have not been suspended or discontinued during the last three years.
(5) Where the insured receives insurance money, he/she shall pay such money to users within 60 days after the date of receipt pursuant to Article 32 (4) of the Act. In such cases, if the amount payable exceeds insurance money, he/she may pay it to users by dividing it proportionally based on the amount of a loss.
(6) In addition to matters provided for in paragraphs (2) and (5), guidelines, procedures and methods for dealing with affairs related to a guarantee insurance and insurance money shall be determined and publicly announced by the Korea Communications Commission.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
CHAPTER IV PROMOTION, ETC. OF COMPETITION BETWEEN TELECOMMUNICATIONS BUSINESSES
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 Article 38 (Criteria, Procedures and Methods for Evaluation of Competition, etc.)   print
(1) Where the Korea Communications Commission demarcates a unit market to conduct an evaluation of competition under Article 34 (2) of the Act, it shall take all of the followings into consideration:
1. Substitutability of demand or substitutability of supply of services;
2. The geographical range for providing services;
3. Transaction stages for providing services, such as retail (referring to a transaction between a telecommunications business operator and the end users of services provided by such telecommunications business operator), wholesale (referring to a transaction providing other telecommunications business operators with telecommunications facilities installed to provide retail services), etc.;
4. Traits of users, such as differences in purchasing power and bargaining power or peculiarity of demand.
(2) The Korea Communications Commission shall conduct an evaluation of competition intended for a unit market demarcated pursuant to paragraph (1), comprehensively taking all of the following matters into consideration:
1. Market structure, such as a market share and barriers to entry;
2. Countermeasures of users, such as easiness of collecting information on the use of services and easiness of changing a service provider;
3. Acts of a telecommunications business operator, such as the degree of competition in charges or quality, and degree of technical innovation;
4. Market performance, such as the level of charges or quality, and the size of excess profits of a telecommunications business operator.
(3) Where the Korea Communications Commission deems it necessary to conduct an evaluation of competition, it may hear opinions of the relevant experts and stakeholders.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 39 (Standards for Basic Telecommunications Business Operators, etc.)   print
(1) "Basic telecommunications business operator who meets standards prescribed by Presidential Decree" in Articles 35 (2) 3, 39 (3) 2, 41 (3) 2 and 42 (3) 2 of the Act means a basic telecommunications business operator whose sales of each service in the preceding year exceeds the amount determined and publicly announced for each service by the Korea Communications Commission and whose market share is at least 50 percent of the total domestic sales of the relevant service.
(2) A facility management agency under Article 35 (2) 3 of the Act means a facility management agency which has facilities, etc. (hereinafter referred to as "facilities, etc.") under Article 35 (1) of the Act, or sales realized by providing facilities, etc. in the preceding year exceeding standards publicly announced by the Korea Communications Commission.
(3) The Korea Communications Commission shall designate and publicly announce basic telecommunications business operators falling under Articles 35 (2) 1 and 3, 39 (3), 41 (3) and 42 (3) of the Act and facility management agencies falling under Article 35 (2) 3 of the Act by December 31 every year.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 39-2 (Procedures for Submitting Data on Facilities, etc.)   print
(1) A telecommunications business operator and facility management agency shall submit the following data to the Korea Communications Commission by March 31 every year pursuant to Article 35 (5) of the Act:
1. The current status of equipment and facilities, etc. determined and publicly announced by the Korea Communications Commission among equipment and facilities possessed by a telecommunications business operator or facility management agency;
2. The current status of equipment and facilities, etc. which a basic telecommunications business operator or facility management agency provides to a telecommunications business operator.
(2) The Korea Communications Commission may subsidize a specialized institution under Article 35 (6) of the Act for expenses incurred in conducting it affairs within the budgetary limits.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 39-3 (Standards for Compulsory Services Provided for Wholesale)   print
(1) "Telecommunications services provided by a basic telecommunications business operator meeting standards set by Presidential Decree" in the latter part of Article 38 (2) of the Act means services, the sales of which in the preceding year exceed the amount determined and publicly announced by the Korea Communications Commission for each service among services provided by a basic telecommunications business operator who has the largest market share in the total domestic sales based on the sales in the preceding year for each service.
(2) The Korea Communications Commission shall determine and publicly announce telecommunications services provided by a basic telecommunications business operator under paragraph (1) by December 31 every year.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 40 (Reporting of Agreement on Interconnection, etc.)   print
(1) Where a person who intends to make a report, report on modification or report on cancellation of the conclusion of an agreement on the provision of wholesale service, the provision, common utilization, interconnection or common use of facilities, etc. or the provision of information, or to obtain authorization, authorization for modification or authorization for cancellation thereof pursuant to Articles 38 (50 and 44 (1) and (2) shall submit the following documents to the Korea Communications Commission: Provided, That in cases of a report on cancellation or authorization for cancellation, he/she shall submit documents referred to in subparagraphs 1 and 6 only, and in cases of insignificant matters announced by the Korea Communications Commission, such as services the price for use of which does not change, he/she shall submit documents referred to in subparagraph 5:
1. A copy of an agreement;
2. Documents in which the amount that the party to an agreement should pay or receive and a method of settlement of accounts thereof and a method of the execution of an agreement are entered;
3. Documents in which the conditions of the provision of wholesale service, the provision, common utilization, interconnection or common use of facilities, etc. or the provision of information, and other expenses incurred in relation to an agreement are specified;
4. Drawings indicating the summary (including an access network diagram, locations of access points, etc.) of the provision of wholesale service, the provision, common utilization, interconnection or common use of facilities, etc. or the provision of information;
5. Documents comparing a new agreement with a former agreement (only applicable to cases where he/she applies for modification of a report or modification of authorization);
6. Documents proving a fact of cancellation (including electronic documents).
(2) When the Korea Communications Commission receives documents under paragraph (1), it shall examine whether the details thereof meet standards for the provision of equipment and facilities, common utilization, the provision of wholesale service, interconnection or common use, or the provision of information under Article 35 (3), 37 (3), 38 (4), 39 (2), 41 (2) or 42 (2) of the Act.
(3) A basic telecommunications business operator who has obtained authorization for the conclusion of an agreement, authorization for modification thereof or authorization for the cancellation thereof pursuant to Article 44 (2) of the Act shall notify the details thereof on the Internet homepage of the relevant business operator.
(4) When the Korea Communications Commission receives documents under paragraph (1) pursuant to Article 65 (3) of the Act, it shall examine whether the details thereof meet standards under Article 35 (3) of the Act and independent telecommunications equipment and facilities provided have been installed for the applicant's own use for telecommunications.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 40-2 (Application for Adjudication)   print
(1) A person who intends to apply for adjudication pursuant to Article 45 (1) of the Act shall submit an application for adjudication to the Korea Communications Commission, along with the following documents: Provided, That he/she shall submit documents under subparagraph 3 only in cases of an application for adjudication under Article 45 (1) 3 of the Act:
1. Documents on the summary of an application for adjudication;
2. Documents related to the progress of consultation between the relevant parties;
3. Documents provided for in the subparagraphs of Article 40 (1).
(2) Where the Korea Communications Commission finds that an application falls under any of the following as a result of the examination of the application and attached documents under paragraph (1), it may request an applicant to supplement documents within an appropriate period fixed:
1. Where accompanying documents are incomplete;
2. Where matters to be mentioned in an application and accompanying documents are unclear.
(3) Where an applicant fails to supplement application documents by the deadline under paragraph (2), the Korea Communications Commission shall return them with a clear statement as to such grounds.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 40-3 (Award)   print
(1) The Korea Communications Commission shall make adjudication in writing.
(2) The Korea Communications Commission shall state the main text and the grounds therefor, and the date of adjudication in an award under paragraph (1), and serve the relevant parties with the award after its chairperson and members attending a meeting affix their signs and signatures.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 41 (Reporting of Prohibited Acts, etc.)   print
(1) If it is recognized that a prohibited act (hereinafter referred to as "prohibited act") under Article 50 (1) of the Act has been committed, any person may report such fact to the Korea Communications Commission and request it to take measures falling under any of the subparagraphs of Article 52 (1) of the Act.
(2) A person who intends to make a report under paragraph (1) shall submit documents in which the followings are stated to the Korea Communications Commission:
1. The name (the name of a corporation and name of the representative in cases of a corporation) and address of a reporter;
2. The trade name or title (the name of the representative in cases of a corporation) and address of a person reported;
3. Details of a prohibited act;
4. Measures necessary for correction of a prohibited act.
(3) Where the Korea Communications Commission deems that it is necessary to supplement reporting documents submitted pursuant to paragraph (2), it may request a reporter to supplement such documents within an appropriate period fixed.
(4) Detailed matters necessary for procedures and methods for dealing with a violation of a prohibited act, such as reporting and supplementation of documents under the provisions of paragraphs (1) through (3), shall be determined and publicly announced by the Korea Communications Commission.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 42 (Types of and Standards for Prohibited Acts)   print
(1) Types of and standards for prohibited acts under Article 50 (3) of the Act shall be as specified in attached Table 3.
(2) Where the Korea Communications Commission deems it necessary to apply to specific telecommunications areas or specific prohibited acts, it may set and publicly announce detailed standards for types of and standards for prohibited acts under paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 43 Deleted. <by Presidential Decree No. 22424, Oct. 1, 2010>   print
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 Article 44 (Measures against Prohibited Acts, etc.)   print
"Matters prescribed by Presidential Decree" in Article 52 (1) 11 of the Act means the following matters:
1. Submitting an implementation plan for the execution of measures under Article 52 (1) 1 through 10 of the Act;
2. Reporting the results of the execution of measures under Article 52 (1) 1 through 10 of the Act:
3. Keeping related data necessary for measures under Article 52 (1) 8 of the Act and notifying a fact of harm to users.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 44-2 (Methods of Issuing Public Notice of Corrective Order)   print
Details of public notice of a corrective order given under Article 52 (1) 7 of the Act and matters necessary for the methods of issuing such notice shall be determined and publicly announced by the Korea Communications Commission.
[This Article Newly Inserted by Presidential Decree No. 22424, Oct. 1, 2010]
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 Article 45 (Period for Execution of Corrective Orders)   print
A period during which a telecommunications business operator should execute a corrective order issued by the Korea Communications Commission pursuant to Article 52 (2) of the Act shall be as specified in attached Table4.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 46 (Violations Subject to Penalty Surcharges and Amount of Penalty Surcharges, etc.)   print
(1) The maximum amount of the imposition and standards for the calculation of penalty surcharges for each type of violations on which a penalty surcharge is imposed pursuant to Article 53 (1) of the Act shall be as specified in attached Table 6.
(2) The maximum amount of the imposition and standards for the calculation of penalty surcharges for each type of violations on which a penalty surcharge is imposed pursuant to Article 53 (2) of the Act shall be as specified in attached Table 7.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 47 (Methods for Calculating Penalty Surcharges)   print
(1) "Sales prescribed by Presidential Decree" in the forepart of the main sentence of Article 53 (1) of the Act means the average annual sales of telecommunications services related to a prohibited act of the relevant telecommunication business operator during the immediately preceding three business years, and "sales prescribed by Presidential Decree" in Article 53 (2) of the Act means the average annual sales of telecommunications services related to the violation of accounting during the immediately preceding three business years: Provided, That where three years have not passed after he/she started a business as of the first day of the relevant business year, it means the amount of sales by the end of the preceding business year after starting such business, which has been converted into the average annual sales, and where he/she starts a business in the relevant business year, it means the amount of sales realized from the date of starting a business until the date he/she commits a violation, which has been converted into the average annual sales.
(2) "Cases prescribed by Presidential Decree" in the proviso to Article 53 (1) of the Act means any of the following cases:
1. Where a telecommunications business operator fails to start business or has no business performance due to the suspension of business, etc.;
2. Where it is impracticable to calculate the objective sales.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 48 (Imposition and Payment of Penalty Surcharges)   print
(1) Where the Korea Communications Commission intends to impose a penalty surcharge pursuant to Article 53 of the Act, it shall inspect and confirm the relevant violation and notify a person subject to imposition of a penalty surcharge in writing, by specifying a violation, the amount imposed, a method for raising an objection, a period for raising an objection, etc., and requesting him/her to pay such penalty surcharge.
(2) A person notified pursuant to paragraph (1) shall pay a penalty surcharge to a financial institution, etc. designated by the Korea Communications Commission within 20 days from the date of receipt of such notification: Provided, That where he/she is unable to pay a penalty surcharge within that period due to force majeure or other unavoidable reasons, he/she shall pay the penalty surcharge within seven days from the date such reasons disappear.
(3) A financial institution, etc. to which a penalty surcharge pursuant to paragraph (2) has been paid, shall issue a receipt to a person who paid such penalty surcharge.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 49 (Demand for Payment of Penalty Surcharges)   print
(1) A demand for payment under Article 53 (6) of the Act shall be made in writing within 7 days after the deadline for payment has passed.
(2) Where a letter of demand is issued pursuant to paragraph (1), the deadline for payment of a penalty surcharge in arrears shall be within 10 days from the date of issuance.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 50 (Services Subject to Preselection Systems)   print
The term "telecommunications services prescribed by Presidential Decree" in the latter part of Article 57 (1) of the Act means toll call services. <Amended by Presidential Decree No. 22424, Oct. 1, 2010>
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 Article 51 (Provision of Directory Assistance Service)   print
(1) A telecommunications business operator who provides directory assistance service pursuant to Article 60 (1) of the Act may provide the following information:
1. The name or trade name of a user;
2. The telephone number of a user;
3. Address of a user, stating the unit of an Eup/Myeon/Dong.
(2) When a telecommunications business operator obtains a user's consent to directory assistance service, he/she shall obtain the user's consent by means that he/she may check whether a person is the person himself/herself and verify a fact of consent after the fact, such as his/her autograph or electronic signature.
(3) A user may withdraw the consent under paragraph (2) at any time, and a telecommunications business operator shall promptly take necessary measures lest directory assistance service for a user who has withdrawn his/her consent should be provided: Provided, That where directory assistance service is provided in a book form, this shall not apply where a user indicates his/her intention of withdrawal from his/her consent 30 days prior to the date of the next publication thereof.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
CHAPTER V TELECOMMUNICATIONS EQUIPMENT AND FACILITIES
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 Article 51-2 (Reporting of and Approval for Installation of Telecommunications Equipment and Facilities)   print
(1) A basic telecommunications business operator who intends to install or change important telecommunications equipment and facilities pursuant to the main sentence of Article 62 (1) of the Act shall submit a report on the installation or a report on changes of important telecommunications equipment and facilities (including a report in an electronic form) to the Korea Communications Commission, along with the following information (including electronic documents):
1. Specifications of the installation or change of telecommunications equipment and facilities (including a schematic diagram of a communications network);
2. Measures for security of telecommunications equipment and facilities.
(2) A basic telecommunications business operator who intends to obtain approval for the installation of telecommunications equipment and facilities to be installed pursuant to the proviso to Article 62 (1) of the Act shall submit an application (including an application in an electronic form) for approval for the installation of telecommunications equipment and facilities to the Korea Communications Commission, along with the following documents (including electronic documents):
1. A business plan;
2. Measures for security of telecommunications equipment and facilities;
3. Technical trends of the relevant telecommunications equipment and facilities, such as national and international standards;
4. The current status of research and development of the relevant telecommunications equipment and facilities in Korea and overseas;
5. An agreement (only applicable to cases of the joint installation or use with other domestic or foreign business operators).
(3) Where the Korea Communications Commission receives an application under paragraph (2), it shall examine the following matters and notify an applicant within 15 days whether it grants approval:
1. The feasibility of a business plan;
2. Appropriateness of measures for security of telecommunications equipment and facilities;
3. Compatibility with domestic and overseas technical standards;
4. The legality of an agreement.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-3 (Research for Joint Installation of Telecommunications Equipment and Facilities)   print
The Korea Communications Commission may research the following data necessary for consultation between basic telecommunications business operators on the joint installation of telecommunications equipment and facilities pursuant to Article 63 (2) of the Act;
1. Basic telecommunications business operators' plans for the installation of telecommunications equipment and facilities on the following:
(a) Types of and standards for telecommunications equipment and facilities which they intend to install;
(b) Areas where telecommunications equipment and facilities are to be installed and sections where they are to be installed;
(c) The scheduled installation time;
(d) Technical conditions, etc.;
2. Telecommunications equipment and facilities that may be jointly installed, and areas and sections where such equipment and facilities may be jointly installed;
3. A plan for the efficient joint installation of telecommunications equipment and facilities;
4. Economic effects following the joint installation of telecommunications equipment and facilities.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-4 (Selection of Specialized Institutions to Conduct Research)   print
(1) Where the Korea Communications Commission intends to have an institution specialized in the field of telecommunications conduct research necessary for consultation between basic telecommunications business operators on the joint installation of telecommunications equipment and facilities pursuant to Article 63 (3) of the Act, it shall select a specialized institution that is recognized to have expertise in such research and ensure impartiality and objectivity, and have such specialized institution conduct such research.
(2) Where the Korea Communications Commission selects a specialized institution to conduct research pursuant to paragraph (1), it shall notify the relevant basic telecommunications business operators of such fact.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-5 (Recommendation for Joint Installation of Telecommunications Equipment and Facilities)   print
(1) Where the Korea Communications Commission recommends basic telecommunications business operators to jointly install telecommunications equipment and facilities pursuant to Article 63 (4) of the Act, it shall recommend the joint installation thereof to them with specified telecommunications equipment and facilities subject to joint installation, areas, sections, time, technical conditions, etc. therefor.
(2) A basic telecommunications business operator who requests the joint installation of telecommunications equipment and facilities pursuant to Article 63 (4) 1 of the Act shall submit documents in which the following matters are included to the Korea Communications Commission:
1. A plan for the joint installation of telecommunications equipment and facilities;
2. Economic effects following the joint installation of telecommunications equipment and facilities;
3. Reasons for the failure to reach an agreement with basic telecommunications business operators subject to the joint telecommunications equipment and facilities, and the solutions thereto.
(3) A basic telecommunications business operator who is recommended to install joint telecommunications equipment and facilities by the Korea Communications Commission shall notify the Korea Communications Commission as to whether he/she accepts such recommendation, and the reason why he/she cannot accept such recommendation where he/she cannot accept such recommendation, within 21 days from the date he/she receives such recommendation.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-6 (Reporting of Private Telecommunications Equipment and Facilities)   print
(1) A person who intends to install private telecommunications equipment and facilities pursuant to Article 64 of the Act shall submit a report (including a report in an electronic form) on the installation of private telecommunications equipment and facilities in which the following matters are stated to the Korea Communications Commission along with the specifications and drawings for the installation work of independent telecommunications equipment and facilities by no later than 21 days prior to the date of commencement of the installation work of the relevant equipment and facilities:
1. A reporter;
2. A type of business;
3. Purposes of installation;
4. A mode of telecommunications;
5. A place where the relevant equipment and facilities are installed;
6. An outline of the relevant equipment and facilities;
7. The date of operation or the scheduled date of operation of the relevant equipment and facilities.
(2) "Important matters prescribed by Presidential Decree" in the latter part of Article 64 (1) of the Act means matters provided for in paragraph (1) 2 through 6.
(3) Where a person who has reported the installation of private telecommunications equipment and facilities intends to change matters under paragraph (2), he/she shall submit a report on changes (including a report in an electronic form) in which changed matters are stated to the Korea Communications Commission along with the specifications and drawings (including a table of comparison before and after changes) for the installation work of private telecommunications equipment and facilities on changed matters by no later than 21 days prior to the date of commencement of such changes (where he/she intends to change matters referred to in paragraph (1) 4 through 6, the date of commencement of such change work).
(4) When the Korea Communications Commission receives a report on installation under paragraph (1) or a report on the change of installation under paragraph (3), it shall examine the following matters:
1. Whether such installation or such change of installation meets technical standards under Article 28 (1) of the Framework Act on Broadcasting Communications Development;
2. Whether the objectives of and reasons for the installation of telecommunications equipment and facilities lie in using them for a reporter's own telecommunications.
(5) Where the Korea Communications Commission finds, as a result of examination under paragraph (4), that such installation or such change of installation meets requirements under the same subparagraphs of the same paragraph, it shall issue a certificate of a report on the installation or a certificate of a report on changes of private telecommunications equipment and facilities to a reporter.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-7 (Confirmation of Installation Work, etc.)   print
(1) A person who has made a report on the installation or a report on changes of private telecommunications equipment and facilities pursuant to Article 64 (3) of the Act shall obtain confirmation from the Korea Communications Commission within seven days from the date the installation work or changing work of such equipment and facilities is completed.
(2) A person who intends to obtain confirmation on independent telecommunications equipment and facilities pursuant to paragraph (1) shall submit an application (including an application in an electronic form) for confirmation on private telecommunications equipment and facilities to the Korea Communications Commission, along with the following documents (including electronic documents):
1. Documents by which it may confirm that the installation work thereof has been performed in compliance with technical standards under Article 28 (1) of the Framework Act on Broadcasting Communications Development;
2. Documents by which it may confirm that the installation work thereof has been performed according to the specifications and drawings under Article 28 (3) of the Framework Act on Broadcasting Communications Development;
3. A copy of a certificate of a contractor.
(3) Where the Korea Communications Commission finds, as a result of examination of application documents under paragraph (2), that an application and accompanying documents fall under any of the followings, it may request an applicant to supplement such documents within an appropriate period fixed:
1. Where accompanying documents are incomplete;
2. Where the details that should be stated in an application and accompanying documents are unclear.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-8 (Exemption from Reporting of Installation of Private Telecommunications Equipment and Facilities)   print
Private telecommunications equipment and facilities that may be installed without reporting pursuant to Article 64 (4) of the Act shall be as follows:
1. Private telecommunications equipment and facilities, the main equipment and terminal equipment of which are installed within one building and a site therefor;
2. Private telecommunications equipment and facilities, the main equipment and terminal equipment of which are installed within two or more buildings owned by one person, the shortest distance between which is within 100 meters, and sites therefor (only applicable to buildings and their sites not separated each other by a road or river);
3. Private telecommunications equipment and facilities installed because they are urgently required for the police operations and used within one month.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-9 (Provision of Private Telecommunications Equipment and Facilities)   print
(1) Where a person who has installed private telecommunications equipment and facilities has surplus telecommunications equipment and facilities exceeding the capacity required for his/her own telecommunications of private telecommunications equipment and facilities installed in a section requested by a basic telecommunications business operator pursuant to Article 65 (2) of the Act, he/she may provide a basic telecommunications business operator with such surplus.
(2) Where a basic telecommunications business operator is provided with private telecommunications equipment and facilities pursuant to paragraph (1), the price for such provision shall follow guidelines determined and publicly announced by the Korea Communications Commission within the limits of the amount calculated by adding the amount of return on investment to expenses incurred in relation to the installation and operation of the relevant private telecommunications equipment and facilities.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-10 (Guidelines for Suspension of Use)   print
Guidelines for the suspension of use under Article 67 (2) of the Act shall be as specified in attached Table 8.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-11 (Facilities subject to Securing of Ducts)   print
"Facilities or sites prescribed by Presidential Decree" in Article 68 (1) 8 of the Act means the following facilities or sites:
1. Bus terminals under the Passenger Transport Service Act;
2. Logistics terminals and logistics clusters under the Act on the Development and Management of Logistics Facilities;
3. Industrial complexes for small and medium enterprises cooperation projects developed pursuant to the Small and Medium Enterprises Promotion Act;
4. Tourist destinations and tourism complexes developed pursuant to the Tourism Promotion Act;
5. Sewage culverts under the Sewerage Act.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-12 (Mediation on Securing of Ducts)   print
(1) Where the Korea Communications Commission prepares a mediation proposal, upon receipt of a request for mediation under Article 68 (5) of the Act, it shall hear opinions of the heads of the relevant administrative agencies and the relevant parties.
(2) Where the Korea Communications Commission has prepared a mediation proposal under paragraph (1), it shall notify the relevant parties of such mediation proposal and may recommend them to accept such mediation proposal with a fixed period for at least 30 days.
(3) Where the relevant parties accept a mediation proposal under paragraph (2), the Korea Communications Commission shall prepare a mediation proposal in which the following matters are entered and have the relevant parties affix their seals or signatures thereon:
1. The number of a case;
2. The name and address of the relevant parties, appointed representatives or agents;
3. The intent of a request for mediation;
4. Items of mediation;
5. The date of preparation.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-13 (Integrated Operation of Telecommunications Equipment and Facilities)   print
Cases where it is necessary for the efficient management and operation of telecommunications equipment and facilities under Article 70 (1) of the Act shall be cases for the resolution of overlapping investment in telecommunications equipment and facilities through the efficient management and operation thereof.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-14 (Selection of Telecommunications Business Operators for Integrated Operation)   print
Where the Korea Communications Commission intends to select a basic telecommunications business operator who may operate integrated telecommunications equipment and facilities pursuant to Article 70 (1) of the Act, it shall examine the following matters on basic telecommunications business operators and select one business operator from among those who provide telecommunications services in areas where telecommunications equipment and facilities subject to integrated operation are installed or the neighboring areas thereof:
1. Human resources and organization;
2. Facilities and equipment;
3. Technical standards;
4. Financial structure.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 51-15 (Matters to be Included in Integrated Management Plan)   print
The term "matters prescribed by Presidential Decree" in Article 70 (3) 3 of the Act means:
1. Matters concerning charges for integrated telecommunications equipment and facilities;
2. Matters concerning operators of integrated telecommunications equipment and facilities.
[This Article Newly Inserted by Presidential Decree No. 22424, Oct. 1, 2010]
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 Article 51-16 (Purchase of Telecommunications Equipment and Facilities, etc.)   print
(1) The sale value of telecommunications equipment and facilities under Article 71 (2) of the Act shall be calculated based on the value appraised and assessed by an appraisal business operator under the Public Notice of Values and Appraisal of Real Estate Act: Provided, That where an appraisal business operator has difficulties in appraising the value, the sale value may be calculated by agreement between the parties concerned.
(2) Procedures for sales of telecommunications equipment and facilities, payment methods of purchase prices, etc. under Article 71 (2) of the Act shall be governed by agreement between the parties concerned.
[This Article Newly Inserted by Presidential Decree No. 22424, Oct. 1, 2010]
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 Article 52 (Designation, etc. of Boundary Areas of Submarine Cables)   print
(1) Where a basic telecommunications business operator makes a request for the designation of a boundary area for submarine cables pursuant to Article 79 (3) of the Act, he/she shall submit the following data to the Korea Communications Commission:
1. The necessity of the designation of a boundary area;
2. Sections and the width of a boundary area (referring to data in which coordinates of a boundary area indicating the latitude and longitude are stated).
(2) If necessary for the designation of a boundary area for submarine cables, the Korea Communications Commission may request a basic telecommunications business operator who has applied for the designation thereof to additionally submit data in addition to submitted documents referred to in the subparagraphs of paragraph (1).
(3) The Korea Communications Commission shall send the data submitted pursuant to paragraphs (1) and (2) to the head of the related central administrative agency under Article 79 (4) of the Act and hear his/her opinion.
(4) The Korea Communications Commission shall, unless any particular circumstance exists, notify a basic telecommunications business operator who has applied for the designation within 60 days from the date of application for the designation of a boundary area for submarine cables whether it has been designated, and when it has designated a boundary area for submarine cables, it shall publicly announce such designation without delay.
(5) If the Korea Communications Commission designates and publicly announces a boundary area for submarine cables pursuant to paragraph (4), a basic telecommunications business operator who has applied for the designation thereof shall make a public announcement of the location of the boundary area on his/her Internet homepage, etc., and may install area indicators, such as by buoys, in the designated boundary area.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 52-2 (Inspection and Reports on Telecommunications Equipment and Facilities)   print
(1) "Cases prescribed by Presidential Decree, such as cases necessary to formulate policies on telecommunications" in Article 82 (1) of the Act means any of the following cases:
1. Where necessary to formulate and implement policies on telecommunications;
2. Where necessary to check whether telecommunications equipment and facilities are installed and managed in an appropriate manner;
3. Where necessary to ensure fail-safe telecommunications in cases of national emergency or a disaster or accident.
(2) Where the Korea Communications Commission conducts an inspection under Article 82 (1) of the Act, it shall notify a person who has installed telecommunication equipment and facilities of an inspection plan on the scheduled date and time, details, reasons, etc. of the inspection by no later than seven days before the inspection: Provided, That in cases of emergency or where it deems that it cannot achieve the purposes of inspection due to the destruction of evidence, etc. if it notifies in advance, this shall not apply.
(3) A public official who conducts an inspection pursuant to paragraph (2) shall carry a certificate indicating his/her authority and produce it to the relevant parties and, present a document, in which his/her name, time and purpose of access, etc. are stated, to the relevant parties when he/she has access to telecommunication equipment and facilities, etc.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
CHAPTER VI SUPPLEMENTARY PROVISIONS
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 Article 53 (Protection of Privacy of Communications)   print
(1) A telecommunications business operator shall preserve a book for the provision of communications data under Article 83 (5) of the Act for one year.
(2) A telecommunications business operator shall report on the current status of the provision of communications data under Article 83 (6) of the Act and notify the current status of the provision of communications data under paragraph (7) of the same Article within 30 days after the expiration of each half-year.
(3) An organization in exclusive charge of the affairs under Article 83 (8) of the Act (hereinafter referred to as "organization exclusively responsible") shall perform the following functions:
1. Presiding over affairs concerning privacy of communications of users;
2. Control over unlawful or unjust acts of violating privacy of communications of users by employees of a telecommunications business operator or the third party;
3. Reporting on the current status of the provision of communications data under Article 83 (6) of the Act;
4. Notification of details entered in the book of the provision of communications data under Article 83 (7) of the Act;
5. Dealing with complaints lodged or opinions submitted by users concerning privacy of communications;
6. Education for employees in charge of affairs concerning privacy of communications;
7. Other affairs necessary for the protection of privacy of communications of users.
(4) An organization exclusively responsible shall be established in the head office of the relevant telecommunications business operator and an employee on the level of an executive shall be held responsible for such organization.
(5) A person with the authority to grant approval for a request for provision of data under Article 83 (9) of the Act shall be a judge, a public prosecutor, a public official of Grade IV or higher in rank (including a public official of Grade V in cases where a public official of Grade V is the head of a government investigation office or the head of an information investigation agency) of an investigation agency (including a military investigation agency, the National Tax Service, a regional tax service: hereinafter the same shall apply) or an intelligence investigation agency, or a public official in general service belonging to the Senior Civil Service: Provided, That in cases of the police and coast guard, he/she shall be a public official in rank equal to or higher than a police superintendent (including a superintendent in cases where a superintendent is the head of a government office) and in cases of a military investigation agency, he/she shall be a military prosecutor or a military officer in rank equal to or higher than a lieutenant colonel (including a major in cases of a military investigation agency, the commanding officer of which is a major).
(6) The grade and name of a person with the authority to grant approval shall be clearly stated in a request for provision of data under Article 83 (9) of the Act: Provided, That in cases of an intelligence investigation agency under subparagraph 6 of Article 2 of the Regulations of Planning and Adjustment of Information and Security Affairs, only the grade of a person with the authority to grant approval may be stated, and in cases of a court, the grade and name of a person with the authority to grant approval shall be clearly stated.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 54 (Notification of Phone Numbers of Callers, etc.)   print
(1) Where a caller expresses his/her intention of rejecting transmission of his/her phone number pursuant to the proviso to Article 84 (1) of the Act, no telecommunications business operator shall impose a charge on the caller for such reason.
(2) A person who intends to learn a caller's phone number pursuant to Article 84 (2) 1 of the Act shall file a request with a telecommunications business operator in writing along with any of the following data by which the telecommunications business operator may confirm a specific fact that he/she has been verbally abused, threatened or ridiculed by telephone (hereinafter referred to as "threat, etc. by telephone"):
1. Data in which the date and hour, and details of threat, etc. by telephone have been recorded in writing;
2. Tape, etc. on which the details of threat, etc. by telephone have been recorded;
3. Where he/she has reported a crime to the police for reason of threat, etc. by telephone, documents proving such threat, etc.;
4. Data providing evidence that he/she has consulted with the related consultation office concerning damage caused by threat, etc. by telephone;
5. Other data corresponding to the provisions of subparagraphs 1 through 4.
(3) "Cases prescribed by Presidential Decree" in Article 84 (2) 2 of the Act means cases of using the following telephone services:
1. For reporting international crimes for counterterrorism (111);
2. For reporting crimes (112);
3. For reporting espionage (113);
4. For reporting of or consultation on cyber terrorism (118);
5. For reporting fires or disasters (119);
6. For reporting maritime accidents or crimes (122);
7. For reporting smuggling (125);
8. For reporting persons who commit crimes related to narcotics (127).
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 55 (Restrictions on and Suspension of Affairs)   print
(1) Where the Korea Communications Commission issues an order restricting or suspending all or some of telecommunications services to a telecommunications business operator pursuant to Article 85 of the Act, it may allow him/her to provide telecommunications services in order of telephone conversions to conduct the following affairs according to the extent and degree of such restriction and suspension:
1. First priority:
(a) National security;
(b) Military affairs and public peace and order;
(c) Delivery of civil defense alerts;
(d) Radio wave control;
2. Second priority:
(a) Disaster relief;
(b) Telecommunications, navigation safety, weather forecast, fire fighting, electricity, gas, water supply, transport and the press;
(c) Affairs of the State and local governments, other than those referred to in items (a) and (b);
(d) Affairs of the foreign diplomatic missions and the organizations of the UN in Korea;
3. Third priority:
(a) Affairs of business entities subject to control of resources and defense industrial business entities;
(b) Affairs of public institutions under the Act on the Management of Public Institutions and medical institutions;
4. Forth priority: Affairs other than those under subparagraphs 1 through 3.
(2) In cases referred to in paragraph (1), telecommunications services restricted or suspended shall be the minimum necessary for securing important communications.
(3) Where all or some of telecommunications services are restricted or suspended pursuant to paragraph (1), a telecommunications business operator shall report the details thereof to the Korea Communications Commission without delay.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 56 (Approval, etc. concerning International Telecommunications Services)   print
(1) "International telecommunications services prescribed by Presidential Decree" in the forepart of Article 86 (2) of the Act means the following:
1. Installation and lease of artificial satellites to provide international telecommunications services;
2. Cross-border supply of basic telecommunications services under Article 87 of the Act.
(2) A person who intends to obtain approval under Article 86 (2) of the Act shall submit the following documents to the Korea Communications Commission:
1. A copy of an agreement or a contract;
2. A table of comparison on old and new agreements or contracts (only applicable to approval for changes);
3. Documents proving the termination of an agreement or a contract (only applicable to an application for approval for the termination thereof).
(3) "Standards prescribed by Presidential Decree" in the proviso to Article 86 (3) of the Act means a telecommunications business operator whose capital is less than three billion won and who does not have an international direct dialling code granted by the Korea Communications Commission.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 57 (Cancellation, etc. of Approval for Contracts for Cross-border Supply of Basic Telecommunications Services)   print
(1) Standards for the cancellation of approval for a contract for cross-border supply of basic telecommunications services and the suspension of cross-border supply of basic telecommunications services under Article 87 (4) of the Act shall be as follows:
1. When violated on one occasion: Suspension within six months or the suspension of subscription of new users;
2. When violated on two occasions: The cancellation of approval.
(2) Where the Korea Communications Commission has imposed disposition for cancellation of approval or suspension under paragraph (1), it shall publicly announce the details of such disposition and notify the relevant telecommunications business operator of such disposition in writing.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 58 (Statistical Reports)   print
(1) Types of statistics which a telecommunications business operator should report to the Korea Communications Commission pursuant to Article 88 (1) of the Act shall be as follows:
1. The current status of telecommunications equipment and facilities: Line facilities, exchange facilities, transmission facilities and power supply facilities, etc. for each service;
2. Results of utilization of telecommunications: Sales, the number of occasions of use, etc. of each service, each phase of distance, each period, each time zone, each country (including the results of each foreign telecommunications business operator), each service area, and between service areas;
3. The current status of users of telecommunications: The number of subscribers, etc. for each service, each City/Do, and each service area;
4. Data related to the number of telephone calls: The number of telephone calls for each service, each phase of distance, each period, each time zone, each City/Do, each country (including the number of telephone calls for each foreign telecommunications business operator), each service area and between service areas, other data for the settlement of accounts related to the provision of facilities and interconnection, etc.;
5. Data related to accounting: Data related to accounting, such as a business report, made by classifying into each business and service provided;
6. The total amount of prepaid calling cards issued by month and details of the use of such calling cards received from users (only applicable to special category telecommunications business operators).
(2) Forms for preparing statistics, methods of presentation and the deadline for reporting under paragraph (1), and other necessary matters shall be determined by the Korea Communications Commission.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 59 (Presentation of Data)   print
(1) A basic telecommunications business operator and the stockholders thereof shall submit the following documents to the Korea Communications Commission pursuant to Article 88 (2) of the Act:
1. The current status of issued stocks (including investment shares; hereinafter the same shall apply) of a corporation;
2. The current status of stockholders (including investors; hereinafter the same shall apply) who own issued stocks of a corporation and the ownership of stocks of persons who have special relations with them (including investment shares; hereinafter the same shall apply);
3. Objectives of the ownership of stocks and reasons for the change thereof (limited to stockholders of a basic telecommunications business operator);
4. The date of acquisition of stocks and details of funds for the acquisition thereof by stockholders under subparagraph 2 (limited to stockholders of a basic telecommunications business operator);
5. The form of ownership of stocks (limited to stockholders of a basic telecommunications business operator);
6. Proving data related to matters referred to in subparagraphs 1 through 5.
(2) A business operator who should submit documents pursuant to paragraph (1) shall submit related documents to the Korea Communications Commission by the deadline as follows:
1. A basic telecommunications business operator who is a listed stock corporation under Article 9 (15) 3 of the Financial Investment Services and Capital Markets Act: Within 30 days from the date of closing a list of stockholders;
2. A basic telecommunications business operator who does not fall under subparagraph 1: By January 30 every year.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
law view
 Article 60 (Methods for Computing Penalty Surcharges, etc.)   print
(1) "Sales computed as prescribed by Presidential Decree" in the forepart of the main sentence of Article 90 (1) of the Act means the average annual sales of telecommunications services subject to the suspension of business of a telecommunications business operator during the preceding three years: Provided, That where three years have not passed as of the first day of the relevant business year after he/she started a business, it means the amount of sales during the period from the commencement of such business to the end of the preceding business year, which has been converted into the annual average sales, and where he/she started a business in the relevant business year, it means the amount of sales during the period from the date he/she started a business to the date he/she committed a violation, which has been converted into the annual sales.
(2) "Cases prescribed by Presidential Decree" in the proviso to Article 90 (1) of the Act means any of the following cases:
1. Where a telecommunications business operator has no results of business due to a failure in commencing business, the suspension of business, etc.:
2. Where a telecommunications business operator refuses to submit data for computing sales or submits false data;
3. Where a telecommunications business operator faces difficulties in computing objective sales.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
law view
 Article 61 (Violations Subject to Imposition of Penalty Surcharges and Amount of Penalty Surcharges, etc.)   print
(1) Types of violations subject to imposition of penalty surcharges pursuant to Article 90 (1) of the Act and the amount of penalty surcharges shall be as specified in attached Table 9.
(2) Types of violations subject to imposition of penalty surcharges pursuant to Article 90 (2) of the Act and the amount of penalty surcharges shall be as specified in attached Table 10.
(3) Where the Korea Communications Commission fixes the amount of a penalty surcharge pursuant to paragraph (1) or (2), it may increase or decrease the amount of a penalty surcharge not exceeding one half thereof, taking into consideration the following matters: Provided, That even in cases of an increase, the total amount of a penalty surcharge shall not exceed the maximum penalty surcharge under Article 90 (1) or (2) of the Act:
1. Special characteristics of telecommunications services;
2. The degree and frequency of violations;
3. Whether a violation has been committed willfully or by negligence;
4. The motive and content of a violation;
5. Imposition of a penalty surcharge, in violation of any Act.
(4) Articles 48 and 49 shall apply mutatis mutandis to the imposition, payment and demand of penalty surcharges under Article 90 of the Act.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
law view
 Article 62 (Extension of Deadlines for Payment of Penalty Surcharges and Payment in Installments)   print
(1) A person who intends to extend a deadline for payment of a penalty surcharge or to pay it in installments pursuant to Article 91 of the Act shall file an application with the Korea Communications Commission, along with documents proving the reasons for the extension of the deadline for payment or payment in installments by no later than 10 days prior to the deadline for payment.
(2) "Amount prescribed by Presidential Decree" in the forepart of Article 91 (1) of the Act means the amount computed by multiplying sales under Article 47 by one percent, or 300 million won.
(3) No extension of the deadline for payment of a penalty surcharge under Article 91 of the Act shall exceed one year from the day following the deadline for payment.
(4) Where a person pays a penalty surcharge in installments pursuant to Article 91 of the Act, the interval between deadlines for each installment payment shall not exceed four months, and the number of times of installments shall not exceed three times.
(5) Where a person liable to pay a penalty surcharge, for whom a deadline for payment has been extended or who has been allowed to pay it in installments pursuant to Article 91 of the Act, falls under any of the following subparagraphs, the Korea Communications Commission may cancel its decision on the extension of the deadline for payment or payment in installments and collect it in a lump sum:
1. When he/she fails to pay a penalty surcharge, for which payment in installments has been decided, by the deadline for payment;
2. When he/she fails to execute the Korea Communications Commission’s order necessary to change security or preserve security;
3. When the Korea Communications Commission deems that it cannot collect all or the remainder of a penalty surcharge, such as compulsory execution, the commencement of auction, the declaration of bankruptcy, the dissolution of a corporation, disposition on default of national taxes or local taxes, etc.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 63 (Types and Appraisal, etc. of Security)   print
Articles 29 through 34 of the Framework Act on National Taxes and Articles 13 through 17 of the Enforcement Decree of the same Act shall apply mutatis mutandis to the offering of security under Article 91 of the Act.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
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 Article 64 (Important Communications)   print
(1) Important communications under Article 92 (2) 3 of the Act shall be as follows:
1. Communications for affairs concerning national security, military affairs, public peace, delivery of civil defense alerts, and radio regulations;
2. Other communications publicly announced by the Korea Communications Commission for the smooth performance of affairs of the State.
(2) The Government may subsidize expenses incurred in relation to the construction and control of important communications in order to secure the important communications referred to in paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
law view
 Article 65 (Delegation of Authority)   print
The Korea Communications Commission shall delegate the following authority to the Director General of the Central Radio Management Office pursuant to Article 93 of the Act:
1. Registration of a special category telecommunications business and the imposition of the terms of such registration under Article 21 of the Act;
2. Acceptance of a report on value-added telecommunications business under Article 22 (1) of the Act;
3. Registration of special value-added telecommunications business under Article 22 (2) of the Act and the imposition of the terms of such registration under paragraph (3) of the same Article;
4. Registration of changes in special category telecommunications business, acceptance of a report on changes in value-added telecommunications business and registration of changes in special value-added telecommunications business under Article 23 of the Act;
5. Acceptance of a report on transfer and acquisition of special category telecommunications business or value-added telecommunications business, and on merger or inheritance of a corporation under Article 24 of the Act;
6. Acceptance of a report on the suspension or discontinuance of special category telecommunications business or value-added telecommunications business, and on the dissolution of a corporation under Article 26 of the Act;
7. Issuance of an order to cancel the registration of special category telecommunications business and to suspend business under Article 27 (1) of the Act;
8. Issuance of an order to discontinue value-added telecommunications business, an order to cancel the registration of special value-added telecommunication business and to suspend business under Article 27 (2) of the Act;
9. Acceptance of a report on the installation or change of private telecommunications equipment and facilities under Article 64 (1) of the Act;
10. Confirmation on installation work or alteration work of private telecommunications equipment and facilities under Article 64 (3) of the Act;
11. Issuance of an order to a person who has installed private telecommunications equipment and facilities to deal with telecommunications services or to connect his/her private telecommunications equipment and facilities with other telecommunications equipment and facilities under Article 66 (1) of the Act;
12. Issuance of a corrective order to a person who has installed private telecommunications equipment and facilities under Article 67 (1) of the Act;
13. Issuance of an order to suspend the use of private telecommunications equipment and facilities, to remodel or repair them or to take other necessary measures under Article 67 (2) and (3) of the Act;
14. Permission for felling and transplantation of plants under the forepart of Article 75 (3) of the Act;
15. Inspection on a person who has installed telecommunications equipment and facilities under Article 82 (1) of the Act and requesting him/her to make a report;
16. Issuance of an order to remove telecommunications equipment and facilities or to take other necessary measures under Article 82 (2) of the Act;
17. Acceptance of a report on agreement on the adjustment of international telecommunications service charges concluded by a special category telecommunications business operator under Article 86 (3) of the Act;
18. Hearings for the cancellation of registration of special category telecommunications business and the discontinuance of value-added telecommunications business under subparagraphs 2 and 3 of Article 89 of the Act;
19. Imposition and collection of a penalty surcharge under Article 90 of the Act and the extension of the deadline for payment and permission for payment in installments under Article 91 of the Act: Provided, That in cases of a basic telecommunications business operator, this shall not apply;
20. Issuance of a corrective order under Article 92 (1) of the Act: Provided, That in cases of a basic telecommunications business operator, this shall not apply;
21. Issuance of an order to suspend the act of providing telecommunications services and to take measures for removal of telecommunications equipment and facilities under Article 92 (3) of the Act: Provided, That in cases of a basic telecommunications business operator, this shall not apply;
22. Imposition and collection of fines for negligence under Article 104 of the Act: Provided, that in cases of a basic telecommunications business operator, this shall not apply.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
law view
 Article 65-2 (Processing of Unique Identification Information)   print
Where it is unavoidable to conduct the following affairs, the Korea Communications Commission (including a person to whom the authority of the Korea Communications Commission has been delegated pursuant to Article 65) may process data including a resident registration number or foreigner registration number under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act:
1. Affairs concerning permission for basic telecommunications business under Article 6 of the Act;
2. Affairs concerning permission for changes in basic telecommunications business under Article 16 of the Act;
3. Affairs concerning authorization for or report of the acquisition of basic telecommunications business by transfer and merger of a corporation, etc. under Article 18 of the Act;
4. Affairs concerning approval for the suspension or discontinuance of basic telecommunications business under Article 19 of the Act;
5. Affairs concerning the registration of special category telecommunications business under Article 21 of the Act;
6. Affairs concerning a report and registration of value-added telecommunications business under Article 22 of the Act;
7. Affairs concerning the registration of changes in special category telecommunications business, report of changes and registration of changes in value-added telecommunications business under Article 23 of the Act;
8. Affairs concerning a report on the transfer or acquisition of special category telecommunications business or value-added telecommunications business under Article 24;
9. Affairs concerning a report of the suspension or discontinuance of special category telecommunications business or value-added telecommunications business and report of the dissolution of a corporation under Article 26;
10. Affairs concerning financial affairs under Article 45 of the Act;
11. Affairs concerning a report of the installation of telecommunications equipment and facilities and approval therefor under Article 62 of the Act;
12. Affairs concerning a report of the installation of private telecommunication equipment and facilities, a report of changes therein, and the confirmation of the installation or change thereof under Article 64 of the Act;
13. Affairs concerning the extension of a deadline for payment of penalty surcharges and payment in installments under Article 91 of the Act.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
CHAPTER VII PENAL PROVISIONS
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 Article 66 (Guidelines for Imposing Fines for Negligence)   print
Guidelines for imposing fines for negligence under Article 104 (1) through (4) of the Act shall be as specified in attached Table 11.
[This Article Wholly Amended by Presidential Decree No. 23642, Feb. 28, 2012]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures for Guaranty Insurance)
Guaranty insurance of a specially designated communications business operator taken out under the former provisions at the time when the amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 111 enters into force, notwithstanding the amended provisions of the attached Table 2, shall be deemed to have been taken out under this Decree until the date of expiration of the contract period of the relevant guaranty insurance.
Article 3 (Transitional Measures for Persons Subject to Reduction of or Exemption from Charges for Telephone Services)
A person subject to reduction of or exemption from a charge for telephone services under Article 2-2 (2) 4 (a) of the former Enforcement Rules of the Telecommunications Business Act at the time when the amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 141, enters into force, shall be deemed as a person subject to reduction of or exemption from a charge for telephone services under this Decree.
Article 4 (Exceptional Cases to Combined Sale)
The amended provisions of subparagraph 6, IV of the attached Table 3 shall apply to the telecommunications services only (including the telecommunications services provided by the specially designated communications business or the additional communications business being operated by a key communications business operator) of a key communications business operator from March 10, 2007.
Article 5 (Transitional Measures for Permission and Registration)
(1) An additional communications business operator providing the transmission services under the amended provisions of subparagraph 1 of Article 3 of the Enforcement Rules of the Telecommunications Business Act at the time when the partially amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 227, enters into force, shall obtain the permission of the Korea Communications Commission as a key communications business operator under Article 5 of the Act, or register a specially designated business operator with the Korea Communications Commission under Article 19 of the Act by no later than December 14, 2009.
(2) The standard of registration concerning financial capacity of the necessary conditions for registration under Article 28 and the amended provisions of the attached Table 2 shall not apply, beyond December 14, 2009, to a telecommunications business operator who should newly register a specially designated communications business under paragraph (1).
Article 6 (Transitional Measures for Transmission Services)
A telecommunications business operator who has obtained the permission of the Minister of Information and Communications as a key communications business operator providing key communications services, other than a lease service of the telecommunications line facilities under subparagraph 3 of Article 3 of the former Enforcement Rules of the Telecommunications Business Act and a service provided using the frequency allotted under subparagraph 4 of the same Article before the partially amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 227, enters into force, shall be deemed to have obtained permission for the transmission services under the amended provisions of subparagraph 1 of Article 7.
Article 7 (Transitional Measures for Service Provided Using Frequency Allotted)
A telecommunications business operator who has obtained permission of the Minister of Information and Communications as a key communications business operator providing a service provided using the frequency allotted to him/her under subparagraph 4 of Article 3 of the former Enforcement Rules of the Telecommunications Business Act before the partially amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 227, enters into force, shall be deemed to have obtained permission as a key communications business operator providing a service provided using the frequency alloted to him/her under the amended provisions of subparagraph 2 of Article 7.
Article 8 (Transitional Measures for Lease Services of Telecommunications Line Facilities)
A telecommunications business operator who has obtained permission of the Minister of Information and Communications as a key communications business operator providing a lease service of the telecommunications line facilities under subparagraph 3 of Article 3 of the former Enforcement Rules of the Telecommunications Business Act at the time when the partially amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 227, enters into force, shall be deemed to have obtained permission as a key communications business operator providing a lease service of the telecommunications line facilities under the amended provisions of subparagraph 3 of Article 7.
Article 9 (Transitional Measures for Internet Telephony)
An Internet telephone service falling under a key communications service under subparagraph 5-2 of Article 3 of the former Enforcement Rules of the Telecommunication Business Act at the time when the partially amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 227, enters into force, notwithstanding the amended provisions of the proviso to the part other than subparagraphs of Article 7, shall be deemed as a key communications service under this Decree.
Article 10 (Transitional Measures for Application, etc. for Registration of Specially Designated Communications Business Operator)
A registration certificate of a specially designated business operator which has been issued under Article 12-2 (1) of the former Enforcement Rules of the Telecommunications Business Act at the time when the partially amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 227, enters into force, shall be deemed as a registration certificate issued under this Decree: Provided, That a specially designated business operator engaging in a prepaid calling card business under the former provisions at the time when the partially amended Ordinance of the Enforcement Rules of the Telecommunications Business Act, Ordinance of the Ministry of Information and Communications No. 227, enters into force, shall make a registration of modification under the amended provisions of Article 22 of the Act by no later than June 14, 2008.
ADDENDA <Presidential Decree No. 20896, Jul. 3, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDUM <Presidential Decree No. 21060, Oct. 1, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 22003, Jan. 27, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 1, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22075, Mar. 19, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22424, Oct. 1, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Exemption from Liability to Compensate for Loss Caused by Pervasive Services)
The amended provisions of Article 5 (2) shall apply to the amount of loss incurred by pervasive services that is calculated on or after the year 2011.
Article 3 (Applicability to Revised License, etc.)
The amended provisions of Articles 19 (4) 2 and 31 (1) 6 shall also apply to a telecommunications business operator whose license or registration has been partially revoked or whose business has been partially discontinued before this Decree enters into force.
Article 4 (Applicability to Reporting on Agreement for Interconnection, etc.)
The amended proviso to Article 40 (1) shall apply to a telecommunications business operator who reports under the amendment or revocation or applies for revised authorization or revocation of authorization on or after the date when this Decree enters into force.
Article 5 (Transitional Measures concerning Application for Approval for Business Suspension, etc.)
Notwithstanding the amended provisions of subparagraphs 5 and 6 of Article 24, the former provisions shall apply to the procedures for approval of suspension or discontinuation of the common telecommunications business which remain in effect at the time this Decree enters into force.
Article 6 (Transitional Measures concerning Reporting, etc. on Value-Added Telecommunications Business)
Notwithstanding the former provisions, the amended provisions of Articles 29 (1) and 32 (1) 2 and (2) 2 shall apply to the procedures for reporting on the value-added telecommunications business, procedures for reporting on the transfer and acquisition of the special category telecommunications business and value-added telecommunications, or procedures for reporting on the merger of corporations, all of which remain in effect at the time this Decree enters into force.
Article 7 (Transitional Measures concerning Pre-Paid Calling Services)
A telecommunications business operator who provides a pre-paid calling service at the time this Decree enters into force shall submit to the Korea Communications Commission or the Director General of the Central Radio Management Office the documents provided for in the amended provisions of Article 37-2 (1) within 45 days after this Decree enters into force.
Article 8 (Transitional Measures concerning Guidelines for Administrative Dispositions, etc.)
Where the guidelines for administrative dispositions or guidelines for imposing penalty surcharges apply to a violation committed before this Decree enters into force, they shall be governed by the amended provisions of attached Tables 1 and 6.
Article 9 (Transitional Measures concerning Fines for Negligences)
(1) Where fines for negligence are imposed for a violation committed before this Decree enters into force, the former provisions shall apply, notwithstanding the amended provisions of attached Table 8.
(2) The frequency of violations under the amended provisions of attached Table 8 shall not include a violation committed before this Decree enters into force that has been subjected to the disposition of fines for negligence.
Article 10 Omitted.
ADDENDA <Presidential Decree No. 22605, Dec. 31, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 24, 2011. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 22616, Jan. 4, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 23293, Nov. 14, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 20, 2011.
Article 2 (Special Cases on Issuance of Certificates of Registration)
Where a certificate of registration of a special value-added telecommunications business operator is issued to a person governed by paragraph (2) of Addenda of the partly amended Telecommunications Business Act, Act No. 10656, within six months after this Decree enters into force, notwithstanding the amended provisions of Article 29 (6), the period for the issuance of a certificate of registration may be extended within 30 days only once.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23642, Feb. 28, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Registration of Changes in Terms and Conditions of Use)
The amended provisions of Article 31 shall apply, beginning with the first alteration of the terms and conditions of use after this Decree enters into force.