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INTERNET MULTIMEDIA BROADCASTING BUSINESS ACT

[Partial amendment 2008.2.29 act #8867]

Chapter 1 Provisions

Article 1 (Purpose) Under the current environment of broadcasting and communication evolving together, this act is to act on an adequate operation of broadcasting business utilizing internet multimedia in order to protect rights of users, develop progress of technology and industry, protect the public interest of broadcasting, improve the culture of citizens and eventually contributing to the development of nationa; economy and enhancing public welfare.

Article 2 (Definition) The definition of the terms used in this act is as follows.

1. "Internet multimedia broadcasting" is a broadcasting that offers various contents such as data, visual image, audio, electronic transaction including real time broadcasting programs to users through a television monitor securing a certain quality of service in a two-way communication internet protocol type by using broadband integrated information communication network(regardless of self-owned or leased, it excludes the electric communication line facility that is used in services that utilizes frequency in order to secure terminal communication business according to article 10, Para 1, item 1 of Frequency act).

2. "Broadband integrated information communication network etc" is the Broadband integrated information communication network according to article 2 item 5 of 2 of Information society acceleration actand the electric communication line facility according to article 2 item 3 of electric communication act.

3. "Real time broadcasting program" is a broadcasting program that is transmitted or offered by broadcasting business operator according to article 2 item 3 of broadcasting actor the internet multimedia broadcasting contents operator and is to offer by not changing the contents and formation.

4. "Internet multimedia broadcasting business" is business as of follows. A. Internet multimedia broadcasting offering business : A business where the Internet multimedia broadcasting offering operator(receives contents according to the article 18 para. 1) in order to offer to Internet multimedia broadcasting presents contents to the user

B. Internet multimedia broadcasting contents business : A business that offers Internet multimedia contents to Internet multimedia broadcasting business operator

5. "Internet multimedia broadcasting operator" is the business as of follows. A. Internet multimedia broadcasting offering operator : A person who is approved according to article 4 para. 1 in order to act on Internet multimedia broadcasting offering business

B. Internet multimedia broadcasting contents operator : A person who is approved or reported and registered according to article 18 para. 2 in order to act on Internet multimedia broadcasting contents business

For Internet multimedia broadcasting business of article 3 (related to other law), this law is applied preferred to other law.

Chapter2 Approval of business

Article 4 (Approval of Internet multimedia broadcasting offering business etc ) One who wants to act on doing Internet multimedia broadcasting offering business needs to get approval of the Broadcasting and the Communication Committee.

Approved one according to para. 1 is limited to corporation. One who wants to get approved according to para. 1, should submit a approval request form including the followings to the Broadcasting and the Communication Committee.

1. Corporation name, address and name of CEO

2. Business plan including contents offering plan

3. Documents that prove financial and technological ability

4. Facility plan(For lease of major facilities, it includes lease plans)

5. Other matters ruled by presidential rules. For approving Internet multimedia broadcasting offering business, Broadcasting and the Communication Committee should inspect the following para. and annouce the results.

1. Feasibility of public responsibility, fairness, public interest of broadcasting

2. Adequacy of supplying plans of contents and contribution toward developing broadcasting visual industry

3. Adequacy of securing plan of fair competition in a fee-rated broadcasting market

4. Adequacy of business plan for organization and human resource operation etc

5. Financial and technological ability

6. For corporations that are established by requester, whether the establishment of the corporation is clear

7. Whether the facility plan is adequate

8. Other matters that are needed in business execution Deleted <2008.2.29>

Broadcasting and the Communication Committee should give approval within 3 months if there is no particular reasons. For processes needed in the approval of Internet multimedia broadcasting business offering according to article 1 and scores for the evaluation standards and other matters should be reuled under the presidential rules. Article 5 (approval term etc) The approval term of Internet multimedia broadcasting offering business is within 5 years under the presidential rule. For re-approval of Internet multimedia broadcasting offering business, follow article

4. Article 6 (Business scope) Internet multimedia broadcasting offering business takes the whole nation as a business scope. However, when business is approved by article 4 para. 1, and when there is a request from a small/medium company owner according to article 2 para. 1 of Small and medium company actand it is acknowledged that the Broadcasting and the Communication Committee is needed, it is not applied.

When a terminal communication business operator according to article 34 para. 3 item 1 and item 2 of electric communication act gets approval according to article 4 para. 1, from the day of the approval and within the term of presidential rule, the service should be started in every broadcasting region regulated by the Broadcasting and the Communication Committee according to article 12 para. 2 of the Broadcasting act.

Article7 (Disqualification matters) Ones who fall into one of the following items cannot act on the internet multimedia broadcasting offering business according to article 4 para. 1.

1. Nation or local self governed organization

2. Stock according to article 8 and 9 or corporation which exceeds the limit of ownership of shares

3. One who has not passed 3 years after the approval is cancelled according to article 24 para. 1

One who falls into one of the following items cannot become an executive of a corporation approved by article 4 para. 1.

1. Non-adults, quasi-incompetent or incompetent

2. One who has not returned after bankruptcy

3. One who has violated this act, Broadcasting act, Electric communication act, Electric communication business act and Rule for accelerating usage of information communication network and protection of information and fined and who has its execution terminated(includes cases where execution is terminated) or 3 years hasn't passed after the execution is exempted

4. One who has conducted a crime and sentenced to imprisonment according to article 87 to 90, article 92 and article 101 ofCriminal act, article 5 to 8 and article 9 para. 2, article 11 to 16 ofMilitary criminal act, or article 3 to 9 ofNational Security ac t and where the execution of the sentence is not terminated or who has been stated to not get sentenced or who is under probation.

5. One who is under security observation according tosecurity observation act or under execution of curing custody according to Curing custody act Foreigner or head of a foreign corporation or organization cannot become a CEO of corporation approved by article 4 para. 1.

Article 8 (Prohibition of combining business etc) When an internet multi media broadcasting offering businessman issues a stock, it should follow the registered method.

Corporation who manages newspaper according to Laws of freedom and securing function for newspaper etc or news clip according to Law of news communication development(includes special experts under presidential rule) cannot own the stocks of internet multi media broadcasting offering business or cannot own exceeding 49/100 of the total shares.

Companies or subsidiaries (includes special experts under presidential rule) that falls into presidential rules if total asset among the companies according to article 2 item 2 of Laws for regulation of monopoly and fair transactionor corporation(includes special experts under presidential rule) that manages newspaper according to Laws of freedom and securing function for newspaper etc or news clip according to Law of news communication development(includes special experts under presidential rule) cannot combine management of internet multi media broadcasting contents business that acts on general formation or specialized formation for reporting or cannot own its stock or shares.

Internet multi media broadcasting offering operator cannot manage (means combining management or owning 5/100 of the total shares) a broadcasting channel using business exceeding 1/5 of each total business unit for television broadcasting channel usage business and radio broadcasting channel usage business and data broadcasting channel usage business according to article 2 and execution law of 2 of article 1 of the Broadcasting act.

Article 9 (Limitation of stock ownership of foreigners etc ) One who falls into one of the following items cannot add with the other one and own the stocks(limited to stock with voting rights and includes stock equivalents and invested shares such as stock depositary receipt. Same as below) of the internet multi media broadcasting offering operator or internet multi media broadcasting contents operator(excludes internet multi media broadcasting contents operator that acts on general formation or specialized formation on reporting) or shares exceeding 49/100 of its total issued stock.

1. Foreign government or organization

2. Foreigner

3. As a corporation which has a foreign government or organization or foreigner (Includes special related ones according to article 2 para. 20 item 1 ofSecurity transaction act. Same as below for this item) as its major shareholder and owns over 15/100 of the total issued stocks (For internet multi media broadcasting offering operator, it excludes corporation which owns less than 1/100 of the issued stocks or shares of internet multi media broadcasting offering and for internet multi media broadcasting contents operators, it excludes corporation which owns less than 1/100 of the issued stocks or shares of internet multi media broadcasting contents operators) One who falls into one of the article 1 item 1, cannot own stocks or shares of internet multi media broadcasting contents operator that acts on general formation or specialized formation of reporting.

Article10 (Limitation of exceeded ownership by shareholder etc ) When one violates the article 8 or 9, one who owns stocks or shares that rendered reason of violation cannot exercise its voting rights for the ownership or its excess. For owners who has violated the article 8 or 9 or had reasons for violating of the stocks or shares, the Broadcasting and the Communication Committee can order such matters within the term of 6 months. One who has been ordered according to para. 2, should adjust within the term of the matters ordered.

Article 11 (Change of approved matters) When one who has been approved by the internet multi media broadcasting offerer according to article 4 para. 1, wants to change the matters ruled by presidential rules, one should get a approval of change according to the presidential rules.

For matters of process of changed approval and inspections, it should follow article

4. Chapter3 Securing and accelerating fair competition Article12 (Acceleration of fair competition) The government should try hard to set up an efficient competition of internet multi media broadcasting offering business and to for a fair competitive environment and avoid the dominating force of other business transfer into the internet multi media broadcasting offering business. In order to set up competition strategy to set up efficient competition system and fair competition environment according to para 1, we form an evaluating committee to act on a competition status evaluation for the internet multi media broadcasting offering business .

The evaluating committee is composed of 9 people and the chair of the committee should be headed by the chair of the Broadcasting and the Communication Committee.

The evaluating committee can request submission of data needed in evaluating the status of competition according to article 2 for the internet multi media broadcasting offerer.

Detailed method of avoiding the dominating force of other business not to transfer into the internet multi media broadcasting offering business, detailed standard/process/method of evaluation of status of competition, installation and organization of evaluating committee and selecting method of task and components and terms and status is to be ruled by the presidential rules. Article13 (limitation of market share etc ) Specific internet multi media broadcasting offerer cannot add the operator and specific internet multi media broadcasting offerer and offer service that exceeds 1/3 of the household on rates including the internet multi media broadcasting, general cable broadcasting, satellite broadcasting for each broadcasting region stated by the Broadcasting and the Communication Committee according to article 12 para. 2 of Broadcasting act. However, within 1 year after this act is enacted it cannot offer service that exceeds 1/5 .

If the internet multi media broadcasting offerer violates the para. 1, Broadcasting and the Communication Committee can set a term of within 6 month and can order to adjust the matters.

The operator that received the adjustment order according to para. 2 should adjust the matters within the term.

Article14 (Equal offering of electric communication facility ) When there is an access or request of usage for the electric communication facility needed in offering service from the internet multi media broadcasting offerer, you cannot decline this without a rational and adequate reason such as lack of own facility and protection of sales confidential facts.

Without a rational and adequate reason, the internet multi media broadcasting offerer cannot stop or limit the usage of own facility which is used by other the internet multi media broadcasting offerer.

The internet multi media broadcasting offerer should not offer its own facility at a disadvantaged terms to the other internet multi media broadcasting offerer. Matters such as the scope of the electric communication facility from para. 1 to 3, reason for decline/stop/limits of offering facility, method and process of offered facility and estimation principles of using facility is to be ruled under presidential rule. Article 15 (reporting Article of usage etc. ) The internet multi media broadcasting offerer should set the rate and using terms(stated as "Article of usage" hereafter) of the service report to the Broadcasting and the Communication Committee (including report of change) and for the using rate, it should receive the approval from the Broadcasting and the Communication Committee. (including approval of change).

One who wants to get approval for the using rate according to para. 1, (including approval of change) should submit the evidence of the fee including the admission fee, basic fee, using rate, additional service fee and other fees ( if changed, it should include the old/new comparison table) to the Broadcasting and the Communication Committee.

Article 16 (Protection of user) The internet multi media broadcasting offerer should take care of righteous thoughts or complaints from the users regarding the service one offers.

The internet multi media broadcasting offerer should take keen measures to protect information of users acquired from service or process of offering electric communication facility and should not disclose such personal information. However, if one agrees or it follows the adequate process according to the rules of other laws, this does not apply. . The internet multi media broadcasting offerer should give the right compensation if the user suffers loss due to wrong offerings of personal information according to para.

2. Article 17 (Prohibition) Among each items of the following that harms fair competition among operators or has users suffer loss, the internet multi media broadcasting offerer should not act on such conduct or a third party should not act on such conduct.

1. Conducts that decline the offering of internet multi media broadcasting service without righteous reason

2. Different from the articles of using, conducts that offer internet multi media broadcasting service or requesting using fee different from the usage contract

3. Conduct that used information of users that was required from the process of the internet multi media broadcasting service

4. Conduct that offers internet multi media broadcasting service at a advantaged or disadvantaged rate or usage terms differentiated from the users wrongly.

5. Conducts that force a wrong contract upon the internet multi media broadcasting offerer using one's status or declining adequate profit distribution

6. Conducts that hinders the watching of other programs of broadcasting operators or hinders the contract of offering service

7. Conducts that decline/stop or limit the use of electric communication facility such as telegraph poles, lines and communication device which is needed in offering service for other broadcasting operators without any righteous reason For cases where internet multi media broadcasting offerer acts on a conduct among each items of item 1, the Broadcasting and the Communication Committee ( discussed with fair trade committee) can set a surcharge ruled under presidential rule less than 2/100 of the sales amount to the internet multi media broadcasting offerer considering the contents and level of the violation, term and numbers of violation conducts, volume of profits acquired from violations. However, for cases of no sales or when it is hard to calculate the sales amount and is ruled under presidential rule, it can set a surcharge less than 0.5 billion won.

When one does not pay the surcharge according to para. 2 within the payment term, Broadcasting and the Communication Committee collects it according to the examples of nonpayment of national tax.

Detailed types and standards of conducts according to each item of para. 1 is to be set by presidential rule.

Chapter 4 Internet multi media broadcasting contents Article 18 (Supplying contents etc ) Broadcasting operator according to article 2 item 3 of Broadcasting act, communication operator according to article 21 of Electric communication business actand ones who produces and supplies contents according to other laws can supply the internet multi media broadcasting contents to internet multi media broadcasting offerers.

Ones who want to supply contents according to para. 1 should report or register to Broadcasting and the Communication Committee. However, one who wants to supply contents specialized in reporting or product introduction and sales or contents covering various fields such as reporting/culture/entertainment to internet multi media broadcasting offerer should get an approval from Broadcasting and the Communication Committee.

Detailed process and methods needed in reporting, registering and approving para 2, is to be ruled under presidential rule.

Article 19 (Development policy for contents business etc) Excluding cases that are ruled by other laws, the government should set and execute a policy to develop the contents business such as fair competition among contents offered to internet multi media broadcasting offerers and forming a fund to enhance related industry. Article 20 (Equal access of contents) When the broadcasting program(stated as " major broadcasting program" hereafter) offered by the internet multi media broadcasting contents operator(reported and registered and approved by article 18 para.2) is notified by the Broadcasting and the Communication Committee according to the presidential rule standard, it should be offered without discrimination at a fair and rational price to the internet multi media broadcasting offerer so that citizens can watch it and should not hinder the benefits of TV watchers and fair transaction orders for contract conducts of major broadcasting program. When the major broadcasting programs of para 1. is notified, the Broadcasting and the Communication Committee should hear out the views of Minister of Culture, Sports and Tourism and broadcasting operator and TV watchers. For internet multi media broadcasting contents operator that violated para. 1, the Broadcasting and the Communication Committee can order necessary adjustments such as stopping prohibition. In this case, Broadcasting and the Communication Committee should give a period to the one before the adjustment and have one state one's thoughts. However, when one does not follow without any righteous reason, it does not apply.

Article21 (Composition and operation of broadcasting program) The internet multi media broadcasting operator cannot operate the channel directly. For the censorship of real time broadcasting program that is offered by internet multi media broadcasting contents operator, it follows the article 32, 33 and 100 of Broadcasting act.

For the real time broadcasting program that is offered by internet multi media broadcasting offerer, it follows the para. 1 to para. 3 of article 70 of Broadcasting act. In this case, the "General Cable TV operator" is seen as "Internet multi media broadcasting offerer" and "Channel" as "Unit of real time broadcasting program offered by internet multi media broadcasting offerer".

Article 69, 71 to 74, Article 76, para. 3 of Article 76, para. 5 of article 76, para. 1 to 4 of article 78 and para. 2 of article 78 of Broadcasting act follows matters for program formation of contents operator, formation of local broadcasting program, formation of broadcasting program produced outside, advertising, notification of cooperation, supply of program, adjustments for securing watching rights, recommendation of successive formation for programs, re-transfer. In this case, "Broadcasting operator" is seen as the "Internet multi media broadcasting offerer or Internet multi media broadcasting contents operator". For disaster broadcasting, it follows the article 75 of Broadcasting act. In this case, "Broadcasting operator" is seen as the "Internet multi media broadcasting offerer". Chapter 5 Supplementary rules

Article 22 (Suspension or termination of business) When the Internet multi media broadcasting offerer wants to suspend or terminate the whole or part of the business, the notice should be notified to the service user and reported to the Broadcasting and the Communication Committee 30days before the estimated Suspension or termination date.

When the internet multi media broadcasting contents operator wants to suspend or terminate the whole or part of the business, one should report it to the Broadcasting and the Communication Committee. Article 23 (donation of business patner etc) In order to enhance the internet multi media broadcasting industry and to use it to the business for developing the welfare of the user, the Broadcasting and the Communication Committee can invest it into the broadcasting development fund according to article 36 of Broadcasting act for the internet multi media braodcasting business operator. Matters for the subjection, collection and distribution rate, operation and management of the donation according to the para. 1 is ruled under the presidential rules. Article 24 (Cancellation of approval and suspension of business) When the internet multi media broadcasting offerer falls into one of the following items, Broadcasting and the Communication Committee can cancel the approval of the business or can suspend the business within 1 year period according to this law. However, when it falls into the item 1, one should cancel the approval.

1. When it was approved according to para. 1 of article 4 by methods of wrong or other misguided method

2. When the business has not started within 1 year or suspended for more than 1 year from the the day of the approval according to para. 1 article 4

3. When the order according to para 2 of article 10 and para. 2 of article 13 has not been executed

Standard, process and other matters according to para 1 is to be ruled under presidential rules.

Article 25 (Surcharge) When the internet multi media broadcasting offerer falls into one of the items of para 1 of article 24 and when the cancellation of the approval or suspension of business gives serious problems to the user of the business or hinders public interest, the Broadcasting and the Communication Committee can sentence a surcharge considering the volume of acquired profit due to the suspension of business or cancellation of approval and violation within the amount less than 3/100 of the sales amount for the internet multi media broadcasting business. When one who has to pay the surcharge but hasn't paid the surcharge within the payment period according to the para.1, Broadcasting and the Communication Committee collects the amount according to the national tax collection. The type of violation that sets surcharge according to the para. 1 and the surcharge amount and other matters is to be ruled under presidential rules. Article 26 (Adjustment order etc) When the internet multi media broadcasting offerer falls into each of the items, Broadcasting and the Communication Committee should set an adjustment order.

1. When the work process seems to hinder the benefits of users significantly

2. When problem occurs in offering internet multi media broadcasting due to accident and no measures were taken promptly

3. When one violated this law or orders according to this law Broadcasting and the Communication Committee can order the suspension of offering the service to a person who manages the internet multi media broadcasting business without approval according to para.1 of article 4. Broadcasting and the Communication Committee can order the suspension of offering the service to a person who managed a internet multi media broadcasting contents business without reporting or registering or getting approved according to the para. 2 of article 18.

Broadcasting and the Communication Committee can take necessary measures for the suspension of violation, change of article of usage and deletion of contract articles when there was violation of the para.1 of article 17. Article 6 Penalty

Article 27 (Penalty) One who falls into one of the following item is sentenced to a less than 2 years of imprisonment or less than 30 million won fine.

1. One who does not get approval(includes approval of change) according to para 1. of article 4 and manages the internet multi media broadcasting business

2. One who violates para.1 of article 14 and declines the request for access and usage for essential electric communication facility without any reasonable and fair reason

3. One(internet multi media broadcasting offerer) who violates para 2. of article 14 and suspend or limits the usage of self-owned facility without any reasonable and fair reason

4. One who violates para 3. of article 14 and offers self-owned facility to other internet multi media broadcasting offerer at a differentiated amount and terms wrongly

5. One who violates para 2. of article 16 and discloses information

6. One who violates the business suspension order according to para1. of article 24 When the head of the corporation, corporation or the proxy/user of one person and other employees violates from item 2 of para.1 to item 4 for the tasks for the corporation or person, it not only penalizes the person who violated but also sentenced fine for each item of the corporation or person. However, when a corporation or person does not get negligent and takes keen care and supervision in order to prevent the violation, it does not apply to it.

Article 28 (Fine) For one who falls into one item of the following items, it sets a fine less than 10 million won.

1. One who did not submitted evidence according to para. 4 of article 12

2. One who has not reported the usage article according to para.1 of article 15 or who offered internet multi media broadcasting business without approval of usage fee

3. One who did not submit evidence according to para. 2 of article 15

4. One who did not take measures for protecting information of the user according to para. 2 of article 16

5. One who did not report according to article 22

6. One who did not implement the adjustment order according to article 26 The fine according to para.1 is to be sentenced by the Broadcasting and the Communication Committee(stated as "Sentencing party" hereafter) ruled by the presidential rule.

One who does not follow the fine order according to para.2 can protest to the sentencing party within 30 days of the order.

When one who gets a fine sentence according to para. 2 protests according to para. 3, the sentencing party should notify to the related court right away and the court which received the notification should execute the court for the fine according to the Non-lawsuit process law.

When one does not protest within the period according to para. 4 and does not pay the fine, it is to be collected by the national tax examples. Additional rules <#8849,2008.1.17>

(Enactment date) This law is to be executed from 3 month of the statement date. Deletion <2008.2.29>

Deletion <2008.2.29>

(Measures on ownership limitation) When the corporation according to para. 3 of article 8 owns the stock or share of a corporation that acts on broadcasting channel business which works on specialized formation for reporting of theBroadcasting act and when the broadcasting channel user is to operate a internet multi media broadcasting contents business for reporting, onw can own the stock or share within the limit of stocks or shares owned by the corporation regardless of the para.3 of article 8.

Deletion <2008.2.29>

Additional rules(Laws on the installation and operation of broadcasting communication committee) <#8867,2008.2.29>

Article 1(enactment day etc) This law is to be executed from the enactment day.

Omit from article 2 to article 6

Article 7(Amendment of other law) Omit from to

Part of the internet multi media broadcasting business act to be amended as follows. Among the para1 of article 4, "the minister of information communication ministry approved by the broadcasting and communication committee" is to be "broadcasting and communication committee" and among each items of the same article, "recommended approval" to be "approval" and "to broadcasting and communication committee & minister of information communication ministry" to "to broadcasting and communication committee" and among each item of the same article of para.4, "broadcasting and communication committee" to "broadcasting communication committee" and "recommended approval" to "approval" and other parts excluding para.5 of the same article to be deleted and the para. 6 of the same article 4 to para.8 of article 4 and from the para.1 and 2 for same article para.5 to the item 6 and 7 of para. 4 of the same article to item 6 and 7, among the para.6 of the same article, "broadcasting and communication committee and minister of information communication ministry is to get recommended approval and approval" to "broadcasting and communication committee is to be approved" and among the para.7 of same article "approved recommendation and approval" to "approval".

Among the evidence of para.1 of article 6, "broadcasting and communication committee and minister of information communication ministry" to "broadcasting and communication committee".

"broadcasting and communication committee" of the para.2 of article6, para. 2 of article 10, main part of para.1 of article 13 and para.2, para.1 and 2 of article 15, main part of para.2 of article 17 and para.3, main part of para. 2 of article 18 and evidence, para.1, 2, 3 of article 20 and its main part, para.2 of article 22 and para.1 of article 26 and its part excluding the part and para.3 and 4 to "broadcasting communication committee". Among the para.3 of article 12, "Co represented by the head of broadcasting and communication committee and minister of information communication ministry" to "head of broadcasting communication committee".

Among the para. 2 of article 20, "minister of culture and tourism" to "minister of culture, sports and tourism".

Among the para.1 of article 22, "to the broadcasting and communication committee and minister of information communication ministry" to "to broadcasting and communication committee".

Among the para. 1of article 23, "broadcasting and communication committee and minister of information communication ministry is " to "broadcasting and communication committee is", "information communication development fund according to the broadcasting development fund and article 33 of [information society acceleration actto "broadcasting development fund" .

Among the main part excluding each item for para.1 of article 24, para.1 of article 25 and para. 2 of article 26, "Minister of information and communication ministry discusses with the broadcasting and communication committee" to "broadcasting and communication committee is" and among the para. 2 of article 25, "Minister of information and communication ministry is" to "broadcasting and communication committee is".

Among the para. 2 of article 28, "broadcasting and communication committee or minister of information and communication ministry(stated "sentencing party" hereafter) " to "broadcasting and communication committee is(stated "sentencing party" hereafter)". Additional rules up to para. 2, 3 and 5 to be deleted. Omit from to <20>

Omit from article 8 to article 12