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ACT ON THE GUARANTEE OF FREEDOM ANDFUNCTIONS OF NEWSPAPERS, ETC. WHOLLY AMENDED BY ACT

Wholly Amended by Act No. 7369, Jan. 27, 2005

Amended by Act No. 7655, Aug. 4, 2005

Amended by Act No. 8852, Feb. 29, 2008

CHAPTER GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to guarantee the freedom and the independence of issuing periodicals, including newspapers, and to augment the social responsibilities of the periodicals in order to expand freedom of the press, forge democratic public opinion, enhance the people's welfare, soundly develop the press and protect the rights and interests of readership.

Article 2 (Definitions)

The terms used in this Act shall be defined as follows:

1. The term "periodical" means any newspaper, any magazine and any other publication which are each issued without interruption under the same titles not less than twice a year;

2. The term "newspaper" means the publication which is issued under the same title not less than twice a month in order to propagate reports, commentaries and public opinion and information, etc. pertaining to politics, economy, society, culture, current events, industry, science, religion, education and sports, etc. and the newspaper is categorized into the publications falling under each of the following subparagraphs:

(a) General daily newspaper: Daily-issued publication aimed at propagating reports, commentaries and public opinion, etc. pertaining to politics, economy, society, culture and current events, etc.;

(b) Special daily newspaper: Daily-issued publication aimed at propagating reports, commentaries and public opinion, etc. pertaining to the specifically limited fields, such as industry, science, religion, education or sports (excluding politics); (c) Foreign-language daily newspaper: General or special daily newspaper which is issued in foreign languages;

(d) General weekly newspaper: Publication which is issued once a week (including any publication which is issued twice a week or not less than twice a month) with the aim of propagating reports, commentaries and public opinion, etc. pertaining to politics, economy, society, culture, current events, etc.; and (e) Special weekly newspaper: Publication which is issued once a week (including any publication which is issued twice a week or twice a month) with the aim of propagating reports, commentaries and public opinion, etc. pertaining to the specifically limited fields, such as industry, science, religion, education or sports (excluding politics);

3. The term "magazine" means the publication in the form of bookbinding which is periodically issued under the same title not more than once a month with the aim of propagating reports, commentaries, public opinion and information, etc. pertaining to the entire fields or the specific fields of politics, economy, society, culture, current events, industry, science, religion, education, sports, etc.;

4. The term "other publications" means publications other than those referred to in subparagraphs 2 and 3, which are provided for by Presidential Decree;

5. The term "Internet newspaper" means any electronic publication which is issued for the purpose of propagating reports, comments, public opinion, information, etc. on current political, economic, social or cultural topics, etc. through both data processing systems including computers and communications networks and which meets the standards prescribed by Presidential Decree, such as the independent production of articles and the continuous publication;

6. The term "periodical business operator" means any person who issues the periodical;

7. The term "Internet newspaper business operator" means any person who electronically issues the Internet newspaper;

8. The term "publisher" means the representative who issues any periodical or electronically issues any Internet newspaper;

9. The term "editor" means any person in charge of editing any periodical or any Internet newspaper;

10. The term "printer" means any person who is selected and appointed by any periodical business operator or any other one who is in charge of printing any periodical after entering into a printing contract with the relevant periodical business operator;

11. The term "branch office" or "district office" means the office which is opened in any area other than the location where the relevant periodical is issued in order to cover news, etc.; and

12. The term "readership" means the group of readers who are supplied with any periodical by the publisher of such periodical or use the Internet newspaper, for free or in return for their subscription rates.

Article 3 (Freedom and Independence of Editing)

(1) The freedom and independence of the editing of periodicals and Internet newspapers shall be guaranteed.

(2) No one shall regulate or interfere with the editing of any periodical or any Internet newspaper unless he is legally authorized to do so in accordance with this Act or other Acts.

(3) Periodical business operators and Internet newspaper business operators shall guarantee the self-regulated editing of editors under the conditions as provided for by this Act.

Article 4 (Social Responsibilities of Periodicals, etc.) (1) Periodicals and Internet newspapers shall respect the dignities and values of humans and the fundamental orders of democracy.

(2) Periodicals and Internet newspapers shall serve to enhance the national reconciliation, to harmoniously develop the country and to forge democratic public opinions and to hear various views of the people from all walks of life. They, however, shall not foster frictions among regions, generations, strata and genders. (3) Periodicals and Internet newspapers shall enhance the people's rights to know and freedom of expression.

(4) Periodicals and Internet newspapers shall not impair the reputations of other persons and infringe on the rights of other persons. (5) Periodicals and Internet newspapers shall not instigate crimes, immoral acts and speculative gambling.

(6) Periodicals and Internet newspapers shall not foster obscenity, decadence or violence which combines to adversely affect the soundness of home life and the proper guidance of children and juveniles.

Article 5 (Fairness and Public Interest of Periodicals) (1) The reports carried by periodicals shall be fair and objective. (2) Periodicals shall not be unreasonably discriminative in their editing on the grounds of genders, ages, occupations, beliefs, strata, regions, races, etc. (3) Periodicals shall faithfully work to reflect the interests of groups and strata of the people who are a minority or in adverse conditions to seek the interests of their own.

(4) Periodicals shall work to attain the balanced development of local communities and to develop the national culture.

(5) Periodicals shall work to provide the groups of different opinions with equal opportunities to expound their different opinions when they publish the policies of the Government, political parties or specific groups, etc. and to maintain the balance in their reports on parties to political interests. Article 6 (Training, etc.)

(1) The business operators of periodicals shall each create and operate a training system aimed at improving the abilities and traits of their employees. (2) In case where the business operators of periodicals jointly build and operate a training establishment, the Korea Commission for the Press (hereinafter referred to as the "Korea Commission for the Press") provided for in Article 27 may financially support such training establishment by making use of the Newspaper Development Fund provided for in Article 33.

(3) The business operators of periodicals shall protect the editing and production activities of their employees.

(4) The business operators of periodicals shall take measures necessary to improve the working conditions and welfare of their employees and to guarantee the self-regulation of their news coverage and production. Article 7 (Scope of Application)

The periodicals shall be governed by this Act except a case there are the provisions especially provided for by other Acts. CHAPTER PROTECTION OF RIGHTS AND INTERESTS OF READERSHIP Article 8 (Protection of Rights and Interests of Readership) The business operators of periodicals and the business operators of Internet newspapers shall allow their readership to participate in the decision-making process of editing and producing periodicals and Internet newspapers and work to bring the fundamental principles of editing and production into conformity with the interests of their readership.

Article 9 (Readership Rights and Interests Committee) The business operators of periodicals who publish any daily newspaper (referring to the general daily newspaper, the special daily newspaper and the foreign-language daily newspaper; hereinafter the same shall apply) may set up a readership rights and interests committee as an advisory body to protect the rights and interests of readership.

Article 10 (Protection of Readership Rights and Interests) (1) The business operators of periodicals may hold a meeting not less than once a month to discuss ways to protect the rights and interests of readership and reflect the results of such meeting in their periodicals. (2) The business operators of periodicals shall be prohibited from concluding, extending or revoking any subscription contract against the will of the relevant subscriber and offering any free periodical and any free gift which fall under the act of unfair transaction.

(3) The question of whether the act of unfair transaction referred to in paragraph (2) is performed and the settlement of such unfair transaction, etc. shall be governed by the Monopoly Regulation and Fair Trade Act. Article 11 (Advertisements)

(1) The business operators of periodicals shall work to protect the rights and interests of their readership from being infringed on by their advertisements and in case where they judge that the contents of any advertisement clearly infringe on the ethics of society and the honors and fundamental rights of other persons, they may refuse to run such advertisement in their periodicals. (2) The editors of periodicals shall edit explicitly articles in order for their readership not to confuse such articles with advertisements. CHAPTER REGISTRATIONS, ETC. OF PERIODICALS AND

INTERNET NEWSPAPERS

Article 12 (Registration)

(1) Any person who intends to publish a periodical or to operate and manage the Internet newspaper business shall register the following matters with the Minister of Culture, Sports and Tourism, the Mayor of a Special Metropolitan City or any other Metropolitan City, or the governor of a Do (hereinafter referred to as the "registration authority") as provided by Presidential Decree. The same shall apply to any change in the registered matters: Provided, That this shall not apply to those periodicals or Internet newspapers which are published or managed by the State or local governments or published by legal entities or other organizations or institutions for the purpose of gratuitous distribution to persons belonging to them or which are provided for by Presidential Decree:

1. Title;

2. Kind and the frequency of issue;

3. The names, the dates of birth and the addresses of the publisher, editors (excluding the case where a foreign periodical is printed and distributed in the original edition in Korea without any alteration in its contents; hereinafter the same shall apply) and the printer, and the name, the date of birth and the address of the business operator of the Internet newspaper (in case where the publisher or the printer is a corporation or an organization, the name of such corporation or such organization, the location of the principal office, and the name, the date of birth and the address of the representative);

4. The location of issuing place;

5. The objectives of issuing it and its contents issued; and

6. Those subject to its propagation and propagation areas. (2) In case where the publisher is a corporation or an organization, the chief executive officer or the representative shall be made the publisher: Provided, That in case where justifiable grounds exist that make it impossible to make the chief executive officer or the representative the publisher, other director or other officer may be made the publisher after going through a resolution of the board of directors.

(3) Any person who intends to have his periodical registered pursuant to paragraph (1) shall explicitly indicate its frequency of issue according to the classification falling under each of the following subparagraphs:

1. Daily (including that which is issued every other day or not less than three times a week);

2. Weekly (including any weekly which is issued twice a week or not less than twice a month);

3. Monthly;

4. Bimonthly;

5. Quarterly; and

6. Biannually. (4) When any periodical and any Internet newspaper are registered pursuant to paragraph (1), the registration authority shall promptly deliver the certificates of registration.

(5) Any periodical and any Internet newspaper whose titles are the same as those of any other periodical and any other Internet newspaper which have already been registered shall be prohibited from being registered. Article 13 (Grounds of Disqualification, etc.)

(1) Any person who falls under any of the following subparagraphs shall be disqualified as the publisher or the editor of any periodical and any Internet newspaper:

1. One who is not a citizen of the Republic of Korea;

2. One who was sentenced to imprisonment without prison labor or a heavier punishment and for whom one year has not passed from the date on which the execution of such sentence was terminated (including a case where the execution of such sentence is deemed terminated) or the exemption from such sentence was made definite or who is in a stay period after having been sentenced to a stay of the execution of the imprisonment without prison labor or a heavier punishment;

3. One who is in a stay period after having been sentenced to a stay of the sentence of the imprisonment without prison labor or a heavier punishment;

4. One for whom the security surveillance disposition under the Security Surveillance Act, the protective custody under the Social Protection Act, or the medical treatment and custody under the Medical Treatment and Custody Act is in the enforcement period;

5. One who was sentenced to a fine or a heavier punishment for violating this Act and for whom two years have not passed from the date on which the execution of the sentence was terminated or the exemption from the sentence was made definite;

6. One who is the publisher or the editor of any periodical or Internet newspaper for whom two years have not passed from the date on which its registration was revoked for violating this Act;

7. One who is a minor, an incompetent or a quasi-incompetent; and

8. One who is not yet reinstated after having been declared bankrupt. (2) When the publisher or the editor of any periodical or any Internet newspaper which is registered pursuant to Article 12 falls under the grounds of disqualification referred to in paragraph (1), the relevant periodical or the relevant Internet newspaper shall have the registration of the publisher or the editor changed within one month from the date on which the grounds of disqualification accrue. (3) Any person who is not a corporation shall be prohibited from publishing a daily newspaper or a general weekly newspaper from among periodicals. (4) Any person who falls under any of the following subparagraphs shall be prohibited from publishing any periodical: Provided, That the same shall not apply to a case where such periodical is published for delivering it to his employees:

1. Any foreign government, any foreign corporation or any foreign organization;

2. Any corporation or any organization whose representative is the one who falls under paragraph (1) 1; and

3. Any foreigner, any foreign corporation or any foreign organization that holds stocks or shares in excess of the ratio falling under any of the following items: (a) 30/100 in the case of a daily newspaper; and (b) 50/100 in the case of any periodical with the exception of a daily newspaper. Article 14 (Contributions, etc. from Foreign Sources) (1) If any person who publishes or intends to publish a periodical receives contributions from foreigners or foreign governments or organizations, he/she shall report to the registration authority in accordance with Presidential Decree either within fifteen days after such receipt or at the time of applying for registration of the said periodical.

(2) Any person who issues or intends to issue any periodical shall, when he receives the investment of any property from any foreigner, any foreign government or any foreign organization, submit a document, officially authenticating the fact of making a report thereon to the Minister of Knowledge Economy pursuant to the provisions of Article 5, 6 or 7 of the Foreign Investment Promotion Act, to the registration authority within 15 days from the date on which he makes the report thereon or at the time of application for registration. Article 15 (Prohibition of Concurrently Running Businesses, etc.) (1) In case where any corporation which runs any daily issues its shares, such shares shall be registered ones.

(2) Any daily and any news communications provided for in the News Communications Development Act (hereinafter referred to as the "news communications") shall be prohibited from being concurrently run, and such daily newspaper and such news communications shall be prohibited from concurrently running any broadcasting business that performs the general programming or the professional programming on reports under the Broadcasting Act (hereinafter referred to as the "broadcasting business"; hereafter the same in this Article shall apply).

(3) A person who holds 1/2 or more of stocks or shares issued by a legal entity carrying on daily newspaper, news communications or broadcasting business (including that affiliated enterprise of the said legal entity which is provided for by Presidential Decree and which holds them) shall neither acquire nor hold 1/2 or more of stocks or shares issued by any other legal entity carrying on daily newspaper or news communications business.

(4) A company (hereinafter referred to as a "large enterprise") which belongs to a conglomerate meeting the standards provided for by Presidential Decree from among large conglomerates, as well as an affiliate of that company (including a specially related person provided for by Presidential Decree), shall neither acquire nor hold more than 1/2 of stocks or shares issued by any other legal entity carrying on daily newspaper or news communications business. (5) Persons who maintain relative relations with one another provided for in Article 777 of the Civil Act from among the directors (referring to executive officers in case of the general partnership and partners with unlimited liability in case of the limited partnership) of any corporation which runs any daily newspaper or any news communications shall not exceed 1/3 of the total number of the directors.

(6) Any person who acquires or holds stocks or shares in violation of the provisions of paragraphs (3) and (4) shall be prohibited from exercising the voting right on the excess portion of such shares or such equities. (7) The registration authority shall order any person who acquires or holds stocks or shares in violation of the provisions of paragraphs (3) and (4) to make the correction thereof within the fixed period of 6 months. (8) The registration authority may get the business operators of periodicals who run dailies and the business operators of news agencies to submit material necessary to confirm facts referred to in paragraphs (2) through (5) under the conditions as provided for by Presidential Decree. Article 16 (Report on Material)

(1) Every business operator of any periodical who issues any daily newspaper shall report the matters of the following subparagraphs to the Korea Commission for the Press with respect to their newspaper business of the immediately preceding fiscal year within 5 months from the date on which the relevant corporation settles its account:

1. The total number of newspapers which are issued and the number of newspapers which are delivered in return for subscription fees or sold on the newspaper market; and

2. Revenues accruing from subscriptions and revenues accruing from advertisements.

(2) Every business operator of any periodical who issues any daily newspaper shall report the total number of shares issued or the total number of equities, the details of his capital and matters concerning details of persons or employees who hold not less than 5/100 of stocks or shares by individual to the Korea Commission for the Press.

(3) The Korea Commission for the Press shall verify the reported matters referred to in paragraphs (1) and (2) and publish the results of the verification. (4) Specific matters concerning the report, the verification and the publication referred to in paragraphs (1) through (3) shall be provided for by Presidential Decree.

Article 17 (Market-Dominating Business Operators) The business operator who falls under any of the following subparagraphs from among the business operators who issue general dailies and special dailies (excluding any daily newspaper which is issued for the purpose of propagating information free of charge) shall be deemed the market-dominating business operator provided for in subparagraph 7 of Article 2 of the Monopoly Regulation and Fair Trade Act, notwithstanding the provisions of Article 4 of the same Act:

1. One business operator whose market share accounts for not less than 30/100 of the average number of newspapers issued nationwide for 12 months of the preceding year; and

2. 3 or more business operators whose total market share accounts for not less than 60/100 of the average number of newspapers issued nationwide for 12 months of the preceding year: Provided, That any person whose market share is less than 10/100 shall be excluded.

Article 18 (Editing Committee, etc.)

(1) A periodical business operator who issues any daily newspaper may set up an editing committee.

(2) The editing committee shall be composed of editing members who represent the business operator of periodical and other editing members who represent the employees engaged in the news coverage and production activities under the conditions as provided for by Presidential Decree. (3) The editing committee may make editing rules in order to ensure the self-regulation of producing general dailies.

(4) In case where the editing rules are made in accordance with paragraph (3), the editing rules shall contain the matters of the following subparagraphs:

1. Matters concerning the composition, authority, organization, the terms of office of members, the guarantee of members' status and operation of the editing committee;

2. Matters concerning the guarantee of the self-regulation, independence and impartiality of the editing committee;

3. Matters concerning the making of the rules of the editing committee;

4. Matters concerning the guarantee of the public nature and self-regulation of editing;

5. Matters concerning the fundamental principles and guidelines of editing;

6. Matters concerning the exercise of the veto right on any news coverage or any production which runs counter to conscience and the fundamental principles of editing;

7. Matters concerning the guidelines of ethics on editing and news coverage;

8. Matters concerning the appointment and dismissal of persons in charge of editing;

9. Matters concerning deliberation, decision and change with respect to the editing direction; and

10. Matters concerning the composition and operation of the readership rights and interests committee, the protection of the rights and interests of readership and the reflection of readership's opinions.

Article 19 (Matters Necessary to be Reported)

The business operators of periodicals and the business operators of Internet newspapers shall carry or publish their names, domiciles, registration numbers, registration dates, titles, the frequencies of issue, publishers, editors, printers, publishing places and publishing dates in their periodicals and Internet newspapers in a manner that their readership can easily ascertain. In case where they have several editors, they shall carry or publish their names and duties: Provided, That in the case of the Internet newspaper, the same shall not apply to the frequency of issue, the printer and the publishing place.

Article 20 (Presentation)

(1) If a periodical business operator who makes the registration in accordance with Article 12 (1) publishes a periodical provided for by Presidential Decree, he/she shall, without delay, present two copies of that periodical to the registration authority.

(2) The State shall properly compensate for the presentation of such copies referred to in paragraph (1).

Article 21 (Request for Trial of Registration Revocation) (1) In case where any person who has had his periodical and his Internet newspaper registered (hereafter in this Article and Articles 22 through 25 referred to as the ?eriodical, etc.? pursuant to Article 12 (1) falls under any of the following subparagraphs, the registration authority may order him to suspend issuing (including electronically issuing) the relevant periodical, etc. for the fixed period (frequency) of not more than 3 months (in the case of any periodical which is issued not more than every other month, not more than 3 times):

1. Where he has issued the arbitrarily changed periodical, etc. without having the changed matters registered pursuant to Article 12 (1);

2. Where the publisher or the editor falls under the grounds of disqualification provided for in Article 13; and

3. Where he has failed to report the contribution of any property in violation of the provisions of Article 14 (1).

(2) In case where any person who has had his periodical, etc. registered pursuant to Article 12 (1) falls under any of the following subparagraphs, the registration authority may order him to suspend issuing his periodical, etc. for the fixed period (frequency) of not more than 6 months (in the case of any periodical which is issued not more than every other month, not more than 6 times) or make a request for trial by the court for revoking the registration of the periodical, etc.:

1. Where he has had his periodical registered by tricks or other illegal methods;

2. Where the contents of his periodical, etc. have seriously violated the issue objectives and the issue contents which are registered; and

3. Where he has issued his periodical, etc. containing obscene contents which have seriously infringed on public morals and social ethics. (3) The first instance trial on the request for trial referred to in paragraph (2) shall be put under the jurisdiction of the collegiate division of any local court having jurisdiction over the location of the general jurisdiction of the business operator of the periodical or the business operator of the Internet newspaper. The court shall put the case on trial within 3 months from the date on which it receives the request for the trial. The request for the trial case on the registration revocation, the deliberation thereof, the trial thereof and other necessary matters shall be provided for by the Rules of the Supreme Court. (4) The Non-Contentious Case Litigation Procedure Act shall apply mutatis mutandis to the trial case on the registration revocation. Article 22 (Ex Officio Revocation of Registration) When any person who has had his periodical, etc. registered pursuant to Article 12(1) falls under any of the following subparagraphs, the registration authority may revoke the registration of the periodical, etc.:

1. When he has failed to issue the periodical, etc. within 6 months (one year in case where they are issued twice a year) after having had the periodical, etc. registered without any justifiable grounds; and

2. When he has suspended issuing the periodical, etc. for not less than one year (not less than 2 years in case where they are issued quarterly or twice a year) without any justifiable grounds.

Article 23 (Registration Revocation Deliberative Committee) (1) The registration revocation deliberative committee mandated to fairly and objectively deliberate on the order issued to suspend issuing the periodical, etc. and the request for the trial on the revocation of any registration provided for in Article 21 (2) and the disposition taken to revoke any registration provided for in Article 22 shall be set up under the registration authority. (2) The composition of the registration revocation deliberative committee under paragraph (1), procedures for deliberation and other necessary matters shall be provided for by Presidential Decree.

Article 24 (Restrictions Imposed on Use of Titles of Periodicals, etc.) When the court hands down a ruling on the case of trial on the registration revocation pursuant to Article 21 (2) through (4) or the registration for the periodical, etc. is revoked pursuant to Article 22, the publisher of the periodical, etc. whose registration is revoked and any person who is in a special relationship with the former which is provided for by Presidential Decree shall be prohibited from issuing the periodical, etc. whose registration is revoked under its title or from having the periodical, etc. registered within 2 years from the date on which their registration is revoked.

Article 25 (Hearing)

The registration authority shall, in case where it intends to revoke the registration of any periodical, etc. pursuant to Article 22, hold a hearing thereon. Article 26 (Opening of Branch Office, etc. of Foreign Periodical) (1) Any person who intends to open a branch office or a district office of any foreign periodical in the Republic of Korea shall obtain the permission therefor from the Minister of Culture, Sports and Tourism under the conditions as provided for by Presidential Decree.

(2) In case where any person who has obtained the permission pursuant to paragraph (1) falls under any of the following subparagraphs, the Minister of Culture, Sports and Tourism may revoke the permission:

1. Where he has obtained the permission by tricks or other illegal methods;

2. Where he has violated the terms of the permission; and

3. Where the relevant foreign periodical has carried articles which harm the national constitution and significantly endanger the national security. CHAPTER DEVELOPMENT OF NEWSPAPER INDUSTRY, ETC.

Article 27 (Establishment of Korea Commission for the Press) The Korea Commission for the Press (hereinafter referred to as the ?ommission? mandated to ensure the diversity of public opinion, to support the work of developing the newspaper industry and to manage and operate the Newspaper Development Fund shall be set up under the Ministry of Culture, Sports and Tourism.

Article 28 (Composition of Commission)

(1) The Commission shall be composed of nine members, including one chairman and one vice chairman.

(2) The chairman and the vice chairman shall be elected from among the members of the Commission.

(3) The members shall be commissioned by the Minister of Culture, Sports and Tourism from among the persons of profound learning in journalism and those falling under each of the following subparagraphs shall be included in the members. In this case, many women shall participate in the Commission as its members:

1. Two persons who are recommended by the President of the Council of the National Assembly; and

2. One person who is recommended each by the Korean Association of Newspapers, the National Union of Media Workers, the Korean Society for Journalism and Communication Studies and civil organizations. (4) The terms of office of the members shall be three years and the members may be reappointed.

(5) In case where any member is vacant, a new member shall be commissioned to fill his vacancy pursuant to the provisions of paragraph (3) within 30 days from the date on which such vacancy occurs. The terms of office of a member for filling a vacancy shall be the remaining period of his predecessor? terms of office. Article 29 (Work of Commission)

The Commission shall perform the works of the following subparagraphs:

1. The work of offering counsels on plans and policies for guaranteeing the diversity of public opinion and developing the newspaper industry;

2. The work of dealing with reports, verifications and publications provided for in Article 16;

3. The work of deliberating and resolving on the master plan for raising the Newspaper Development Fund provided for in Article 33 and managing and operating the Fund;

4. The work of selecting persons and organizations eligible for the Newspaper Development Fund provided for in Article 33 and deliberating and resolving on the support standards;

5. The work of conducting education, studies and surveys aimed at guaranteeing the diversity of public opinion and developing the newspaper industry; and

6. Other works needed to attain the objectives of the Commission. Article 30 (Operation of Commission and Establishment of Secretariat, etc.) (1) The Commission may, if it is deemed necessary, set up and operate subcommissions mandated to perform the Commission? work after consulting thereabout with the Minister of Culture, Sports and Tourism. (2) The budget necessary to operate the Commission may be financed by the Newspaper Development Fund or the National Treasury. (3) A secretariat shall be established in the Commission in order to perform the administrative affairs of the Commission.

(4) Other necessary matters concerning the organization and operation of the Commission shall be provided for by Presidential Decree. Article 31 (Treatments of Members)

The offices of the members of the Commission shall be honorary: Provided, That necessary expenses which are spent to perform the work and other actually spent expenses may be reimbursed within limits of budget. Article 32 (Obligations to Prevent Secrets from being Leaked) The members of the Commission and the staff of the secretariat shall keep the business secrets of the business operators of periodicals that they learn while performing the work and the administrative affairs. Article 33 (Establishment and Raising of Newspaper Development Fund) (1) The Commission shall set up the Newspaper Development Fund (hereinafter referred to as the ?und? with the aim of developing periodicals, including newspapers, and Internet newspapers.

(2) The Fund shall be raised from the financial resources falling under each of the following subapragraphs:

1. Contributions from the Government;

2. The money which is transferred from other Funds;

3. Contributions and donations from individuals and corporations;

4. Revenues accruing from the operation of the Fund; and

5. Other revenues which are provided for by Presidential Decree. Article 34 (Uses of Fund)

(1) The Fund shall be used for the project falling under each of the following subparagraphs:

1. The project aimed at facilitating the diversity of public opinion and developing Internet newspapers;

2. The project aimed at guaranteeing the rights and interests of readership;

3. The project aimed at upgrading the circulation system of newspapers;

4. The project aimed at enhancing the public interests by the press; and

5. Other projects which are provided for by Presidential Decree. (2) Any person who falls under any of the following subapragraphs shall not be eligible for the financial support from the Fund:

1. A periodical business operator who is furnished or issued free of charge; and

2. The market-dominating business operator who falls under Article 17. (3) The Commission shall publish the standards for the financial support from the Fund and those eligible for the financial support from the Fund every year. Article 35 (Management and Operation of Fund)

(1) The Fund shall be managed and operated by the Commission. (2) The Commission may commission the work of managing and operating the Fund to any press-related corporation or organization under the conditions as provided for by Presidential Decree.

(3) Other necessary matters concerning the methods of raising the Fund, the management and operation of the Fund and the audit of the Fund, etc. shall be provided for by Presidential Decree.

Article 36 (Report to National Assembly)

The Commission shall submit a report detailing the use, etc. of the Fund to the National Assembly on or before it opens its ordinary session. Article 37 (Establishment of Newspaper Circulation Service) (1) The Newspaper Circulation Service shall be established in order to make it possible for the people to have wide-range rights to select newsmedia. (2) The Newspaper Circulation Service shall be a corporation. (3) The Newspaper Circulation Service shall have necessary officers and employees on its payroll under the conditions as provided for by the articles of association.

(4) The Newspaper Circulation Service shall implement the projects of the following subparagraphs:

1. The project aimed at jointly delivering newspapers;

2. The project aimed at delivering magazines and other publications;

3. The project aimed at transporting newspapers by proxy; and

4. Other projects which are necessary to attain the objectives of establishing the Newspaper Circulation Service.

(5) Costs needed to operate the Newspaper Circulation Service shall be financed from the National Treasury.

(6) The provisions concerning the incorporated foundation in the Civil Act shall apply mutatis mutandis to the Newspaper Circulation Service except those as provided for by this Act.

CHAPTER SUPPLEMENTARY PROVISIONS

Article 38 (Delegation and Commission of Authority) (1) The Minister of Culture, Sports and Tourism may delegate part of his authority under this Act to the Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do governor under the conditions as provided for by Presidential Decree.

(2) The registration authority may commission the work of presenting periodicals provided for in Article 20 to any non-profit corporation or organization related to the press which is provided for by Presidential Decree under the conditions as provided for by Presidential Decree.

(3) The Korea Commission for the Press may commission part of its work provided for in subparagraph 2 of Article 29 to any institution in charge of the work of officially checking the number of newspapers, etc., under the conditions as provided for by Presidential Decree.

CHAPTER PENAL PROVISIONS

Article 39 (Penal Provisions)

Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than 2 years or a fine not exceeding 30 million won:

1. One who has regulated or interfered with the editing of any periodical or any Internet newspaper in violation of the provisions of Article 3 (2);

2. One who has issued or published any periodical or any Internet newspaper after having them registered or having any changed matter registered under the provisions of Article 12 (1) by false or other illegal means; and

3. A member or an employee who has leaked business secrets of a periodical business operator in violation of the provisions of Article 32. Article 40 (Penal Provisions)

Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than 1 year or a fine not exceeding 20 million won:

1. One who has issued or published any periodical or any Internet newspaper without having his business registered or any changed matter registered pursuant to the provisions of Article 12 (1);

2. One who has failed to make a report after receiving the contribution of any property in violation of the provisions of Article 14 (1);

3. One who has concurrently run any other business or acquired or held stocks or shares in violation of the provisions of Article 15 (2) through (4);

4. One who has issued or published any periodical or any Internet newspaper in violation of the disposition provided for in the provisions of Article 21 (1) and (2) or 22; and

5. One who has opened any branch office or any district office of the foreign periodical in the Republic of Korea without obtaining the permission therefor pursuant to the provisions of Article 26 (1).

Article 41 (Penal Provisions)

Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding 10 million won:

1. One who falls under any subparagraph of Article 13 (1) and has taken office as a publisher or an editor; and

2. One who has selected and appointed any person falling under any subparagraph of Article 13 (1) as a publisher or an editor.

Article 42 (Joint Penal Provisions)

When the representative of any corporation or the agent, the employed and the employee of any corporation or any individual commits the act of violating the provisions of Articles 39 through 41 in connection with the business of the corporation and the individual, such corporation and such individual shall be each fined according to the relevant Article in addition to the punishment of the actor. Article 43 (Fine for Negligence)

(1) Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 20 million won:

1. One who has edited in violation of the provisions of Article 11 (2);

2. One who has failed to submit the document within the fixed period provided for in the provisions of Article 14 (2);

3. One who has failed to submit material after having received a request therefor under the provisions of Article 15 (8);

4. One who has failed to make the report within the fixed period provided for in the provisions of Article 16 (1) and (2);

5. One who has failed to carry or publish matters which are required under the provisions of Article 19; and

6. One who has failed to present the copies of periodical which are required under the provisions of Article 20 (1).

(2) The fine for negligence referred to in paragraph (1) shall be levied and collected by the registration authority under the conditions as provided for by Presidential Decree.

(3) Any person who is dissatisfied with a disposition taken to impose the fine for negligence on him referred to in paragraph (2) may raise an objection to the registration authority within 30 days from the date on which he is notified of such disposition.

(4) When any person who is subjected to a disposition taken to impose the fine for negligence under paragraph (2) raises an objection pursuant to paragraph (3), the registration authority shall promptly notify the competent court of the fact and the competent court shall, upon receiving the notification, put the case on trial in accordance with the Non-Contentious Case Litigation Procedure Act. (5) When the relevant person does not raise an objection and fails to pay the fine for negligence within the fixed period referred to in paragraph (3), the fine for negligence in question shall be collected according to the example of a disposition taken to collect the national tax in arrears or the local tax in arrears. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 16 (3) and 38 (3) shall enter into force one year and six months after the date of its promulgation. Article 2 (Transitional Measures concerning Registration, etc. of Periodicals) (1) Any periodical which is registered pursuant the previous Registration, etc. of Periodicals Act at the time of enforcement of this Act shall be deemed the periodical which is registered pursuant to this Act. (2) Any report, the revocation of any registration, other act, various applications and any act performed to any administrative agency pursuant to the previous Registration, etc. of Periodicals Act at the time of enforcement of this Act shall be deemed any act performed by any administrative agency or any act performed to any administrative agency pursuant to this Act.

Article 3 (Transitional Measures concerning Registration of Internet Newspaper) Any person who operates and manages any Internet newspaper which meets the standards which are provided for by Presidential Decree for the independent production of articles and the issuing of it without interruption, etc. shall have his Internet newspaper registered pursuant to the amended provisions of Article 12 (1) within 3 months after the enforcement of this Act. Article 4 Omitted.

Article 5 (Relation with Other Acts and Subordinate Statues) In case where other Acts and subordinate statues quote the provisions which fall under the contents which are provided for by this Act from among the provisions of the Registration, etc. of Periodicals Act at the time of enforcement of this Act, the relevant provisions of this Act shall be deemed quoted. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. Articles 2 through 8 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.(Proviso Omitted.) Articles 2 through 7 Omitted.