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Laws of the Republic of Korea |
TELECOMMUNICATIONS BUSINESS ACT
(Unofficial Translation: the Korean-language version shall prevail.) - 2 -
TELECOMMUNICATIONS BUSINESS ACT
Contents
CHAPTER I GENERAL PROVISIONS (Article 1 through 3-2) ·············································································· 4
CHAPTER II TELECOMMUNICATIONS BUSINESS ··································································································· 6
Section 1 General Provisions ································································································································ 6
Section 2 Common Business (Article 5 through Article 16) ······································································· 6
Section 3 Deleted on
Section 4 Service-Based Business and Value-Added Business (Article 19 through 28)
························································································································································································
17
CHAPTER III TELECOMMUNICATIONS OPERATION(Article 29 through Article 33-3) ······························· 22
CHAPTER IV PROMOTION OF COMPETITION FOR TELECOMMUNICATIONS BUSINESS
CHAPTER V INSTALLATION AND PRESERVATION OF TELECOMMUNICATION FACILITIES
(Article 39 through Article 52)
························································································································································································
44
CHAPTER VI SUPPLEMENTARY PROVISIONS (Article 53 through Article 68) ············································ 49
CHAPTER VII PENALTY (Article 69 through Article 78) ···················································································
58
(Unofficial Translation: the Korean-language version shall prevail.)
- 3 -
The Telecommunications Business Act
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Telecommunications Business Act
[Partially amended by Law No. 8867 dated Feb. 29, 2008]
CHAPTER I GENERAL PROVISIONS
(Purpose)
Article 1
The purpose of this Act is, through operating telecommunication business appropriately, to
promoting user convenience and to pursue
sound development of telecommunications
business and thereby enhance public welfare.
(Definitions)
Article 2
(1) For the purpose of this Act:
1. "Telecommunications carrier" means a person who provides Telecommunications Service
by obtaining a license, a registration or
a notification as required under this Act.
2. "User" means a person who has entered into a contract of use of Telecommunications
Service with a Telecommunications carrier to
receive Telecommunications Service.
3. "Universal Service" means the basic Telecommunications Service which any user may
receive at an appropriate charge anytime and
anywhere within Korea.
(2) Unless otherwise defined for terms under the paragraph (1), the terms used in this Act
shall be defined
pursuant to the relevant provisions of the Framework Act on
Telecommunications.
(Service Provision Obligation, etc.)
Article 3
(1) A Telecommunications carrier shall not refuse to provide any Telecommunications Service,
without any justifiable reason.
(2) A Telecommunications carrier shall guarantee the fairness, speediness and accuracy in
performing his business.
(3) Telecommunications Service charges shall be reasonably determined so as to ensure a
smooth development of telecommunications
business and to provide the users with
convenient and diverse Telecommunications Services in the fair and inexpensive manner.
The
Telecommunications Business Act
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(Universal Service)
Article 3-2
(1) All Telecommunications carriers shall have the obligation to provide Universal Service or
compensate any losses caused by provision
of such service .
(2) The Korea Communications Commission (hereinafter referred to as the "KCC") may,
notwithstanding the provision of paragraph (1),
exempt the telecommunications carrier
determined by the Presidential Decree as a telecommunications carrier for whom an
imposition
of obligation under paragraph (1) is deemed inappropriate in view of the
peculiarity of Telecommunications Service or the telecommunications
carrier whose
turnover of Telecommunication Service is less than the amount as determined by the
Presidential Decree within the
limit of one hundredth (1/100) of the total turnovers of the
Telecommunications Service, from the relevant obligations.
(3) The details of the Universal Service shall be prescribed by the Presidential Decree in
consideration of the following subparagraphs:
1. Level of development of information and communications technology;
2. Level of supply of Telecommunications Service;
3. Public interest and safety;
4. Promotion of social welfare; and
5. Acceleration of informatization
(4) To ensure that the Universal Service is provided in an efficient and stable manner, the KCC
may designate a telecommunications carrier or carriers to provide such Service pursuant to
the criteria and procedures specified
in the Presidential Decree in consideration of the
size, quality and level of charges of the Service, technical competence of the
relevant
carrier or carriers, etc.
The Telecommunications Business Act
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CHAPTER II TELECOMMUNICATIONS BUSINESS
Section 1 General Provisions
(Classification of Telecommunications Business, etc.)
Article 4
(1) Telecommunications business shall be classified into common business, service-based
business, and value-added business. 1. A business which provides Common Service using telecommunications line facilities, etc
of any person who has obtained a license
for common business pursuant to Article 5
(hereinafter referred to as the "common carrier"); or
2. A business which installs telecommunications facilities within the premises as determined
by the Presidential Decree or provides
Telecommunications Service therein using the
said facilities.
(4) Value-added business shall be a business which provides Telecommunications Service other
than the Common Service under the provision
of Paragraph (2) (hereinafter referred to as
the "Value-added Service") by leasing telecommunications lines facilities from a common
carrier.
Section 2 Common Business
(Licensing of Common Carrier, etc.)
Article 5
The Telecommunications Business Act
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(1) A person who intends to operate a common business shall obtain a license from the KCC.
(3) The KCC shall, in granting a license under paragraph (1), comprehensively examine the
matters falling under each of the following
subparagraphs:
1. Propriety of the plans for providing Common Service;
2. Appropriateness of the size of Telecommunications facilities;
3. Financial and technical capabilities;
4. Actual results of technical developments related to Common Service to be provided;
5. Technical development plans related to Common Service;
6.Support pans for technical developments for the promotion of telecommunications;
and
7. Other necessary matters for business operations.
(4) The KCC shall set forth the detailed examination criteria for the each matter
under the
provision of paragraph (3), time limit for license application, and guidelines for application
for license, and make
a public announcement thereof.
(5) The KCC may, in the case where he grants a license for common business under
paragraph (1), attach the conditions necessary
for the promotion of fair competition,
protection of users, improvement of service quality, efficient use of information and
communications
resources, etc.
(6) A person eligible for a license under the provision of paragraph (1) shall be limited to a
juristic person.
Procedures for a license under paragraph (1) and other necessary matters shall be prescribed
by the Presidential Decree.
The Telecommunications Business Act
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(Grounds for Disqualification for License)
Article 5-2
Any person falling under any of the following subparagraphs shall not be licensed for
common business as specified under the provision
of Article 5:
1. National or local governments;
2. Foreign governments or foreign juristic persons;
3. Juristic persons whose stocks are owned by foreign governments or foreigners beyond
the stockholding limits referred to in Article
6 (1). [Newly enacted on February 9, 2004]
(Restrictions on Stock Holding by Foreign Governments or Foreigners)
Article 6
(1) The aggregate number of stocks of a common carrier held by foreign governments or
foreigners (limited to the voting stocks,
and including the stock equivalents with voting
rights, such as stock depository receipts, etc. and investment equities; the same
shall apply
hereinafter) shall not exceed 49/100 of the total number of issued stocks.
(2) A juristic person whose largest stockholder
is a foreign government or a foreigner
(including specially interested person as referred to in subparagraph (i) of paragraph (1)
of
Article 9 of the Capital Market and Financial Investment Business Act; hereinafter the same
shall apply) shall be regarded as
a foreigner (hereinafter referred to as a "a deemed
foreign person") when 15/100 or more of the total number of issued stocks are
held by
the said foreign government or foreigner.
(3) A juristic person that owns less than 1/100 of the total number of stocks issued by a
common carrier shall not be regarded as
a foreigner, even if it satisfies the requirements
referred to in paragraph (2). [Wholly amended on February 9, 2004]
(Grounds
for Disqualification for Officers)
Article 6-2
(1) Any person falling under any of the following subparagraphs shall be disqualified from
serving as an officer of a common carrier:
1. A minor or a legally incompetent or quasi-incompetent person;
The Telecommunications Business Act
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2. A person who has yet to be reinstated after having been declared bankrupt;
3. A person who has been sentenced to imprisonment without prison labor or a heavier
punishment for violation of this Act, the Framework
Act on Telecommunications, the
Radio Act, or the Act on Promotion of Information and Communications Network
Utilization and Information
Protection, etc. and for whom three years have yet to elapse
from the date on which the execution of the sentence is terminated
(including a case
where the execution of the sentence is deemed to be terminated) or exempted;
4. A person who is still on probation after having been sentenced to a suspension of the
execution of the imprisonment without prison
labor or a heavier punishment on charges
of violating of this Act, the Framework Act on Telecommunications, the Radio Act, or
the
Act on Promotion of Information and Communications Network Utilization and
Information Protection, etc;
5. A person for whom three years have yet to elapse after having been sentenced to a
fine on charges of violating this Act, the Framework
Act on Telecommunications, the
Radio Act, or the Act on Promotion of Information and Communications Network
Utilization and Information
Protection, etc; or
6. A person who has been subject to a disposition made to revoke his license pursuant to
Article 15 (1), a disposition made to revoke
his registration pursuant to Article 28 (1) or
an order given to close his business pursuant to paragraph (2) of the same Article
and
for whom three years have yet to elapse from the date of such disposition or order. In
the case of a juristic person, the person
refers to the person who committed the act
that caused the disposition to revoke license or registration, or the order to close
business, and its representative.
(2) Any officer that falls or is found to have fallen at the time when he or she was appointed
as an officer under any of the subparagraphs
of paragraph (1) shall resign from the office
as a matter of course.
(3) Acts in which the officer was involved prior to his or her resignation under paragraph (2)
shall remain valid. [Wholly amend
on December 26, 2002]
(Examination of Public Interest on Stock Acquisition, etc. by Common Carrier)
Article 6-3
(1) The KCC shall establish the Public Interest Review Committee (hereinafter referred to as
The Telecommunications Business Act
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the "Committee") in order to examine whether what follows under each of the following
subparagraphs harms the public interest as
specified in the Presidential Decree (hereinafter
referred to as the "examination of the public interest"), such as the national
security
guarantee and maintenance of public peace and order, etc.:
1. When a person comes to own 15/100 or more of the total number of issued stocks by
a common carrier, when adding up those owned
by the specially interested person as
referred to in subparagraph (i) of paragraph (1) of Article 9 of the Capital Market and
Financial
Investment Business Act (hereinafter referred to as the "specially interested
person");
2. When the largest stockholder of a common carrier is replaced by another person;
3. When a common carrier or any of its stockholders enters into a contract with a foreign
government or a foreigner for important
management matters as prescribed by the
Presidential Decree, including the appointment and dismissal of officers and the transfer
or acquisition, etc. of the business of the relevant common carrier; or
4. Any other cases as prescribed by the Presidential Decree when there is a change in the
stockholders who have de facto management
rights of a common carrier.
(2) Where a common carrier or any of its stockholders comes to fall under any of the
subparagraphs
of paragraph (1), he shall notice that fact to the KCC within seven days
from the time when it took place.
(4) Where the KCC receives such a notification as prescribed to in paragraph (2) or a request
for a review as prescribed to in paragraph
(3), it shall refer it to the Committee.
(5) The KCC may, when it determines that there exists a danger of harming the public
interests by the cases falling under each of
subparagraphs of paragraph (1) in view of the
result of examination as referred to in paragraph (1), order amendment of the contract,
suspension of its performance, suspension of the exercise of the voting rights , or sale of
the relevant stocks.
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(6) The notification, or the scope of common carriers to be examined, and the procedures for
notification and examinations, and
other necessary matters under paragraph (2) or (3) shall
be prescribed by the Presidential Decree.
(Organization and Operation of Public Interest Review Committee)
Article 6-4
(1) The KCC shall consist of members no less than five and no more than ten, including one
Chairman.
(2) The Chairman of the Committee shall be the Vice Chair of the KCC, and the members
shall be the persons commissioned by the Chairman
from among the public officials of
Grade III of related national government agencies or the public officials in general service
who belong to the group of senior public officials as prescribed by the Presidential
Decree, and those falling under any of the
following subparagraphs: 1. A person with good knowledge and experience in the field of information and
communications;
2. A person recommended by a Government-invested research institute related to the
national security, and/or maintenance of public
order;
3.A person recommended by a non-profit organization under Article 2 of the Assistance
for Non-profit Non-governmental Organizations
Act; and
4. Any other person who the Chairman deems necessary.
(3) The Committee may conduct any necessary investigations for the examination
of public
interest, or request the interested parties or the reference witnesses to provide the data.
In this case, the parties
concerned or the reference witnesses shall comply with such a
request unless they have any justifiable reason to do otherwise.
(4) Where the Committee deems it necessary, it may have the interested parties or the
reference witnesses attend the Committee,
and hear their opinions.
(5) Matters necessary for the organization or operation of the Committee shall be prescribed
by the Presidential
Decree. [Newly enacted on February 9, 2004]
(Restrictions on Stockholders Owning Excessive Stocks)
The Telecommunications Business
Act
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Article 7
(1) When a foreign government or a foreigner has acquired stocks in contravention of Article
6 (1), it shall not exercise voting
rights for the excessive stocks.
(2) The KCC may order the stockholder who has acquired stocks in contravention of Article 6
(1),
the common carrier to which the said stockholder belongs, or the stockholder of the
fictitious juristic person of a foreigner to
correct the relevant matters, specifying the time
limit within six months.
(4) The common carrier may refuse any renewal for the excessive portion in the register of
stockholders or of members, with respect
to the stockholder who contravened Article 6
(1). [Wholly amended on February 9, 2004]
(Periodic Penalty Payment)
Article 7-2
(1) The KCC may levy a periodic penalty payment against any person who has failed to
comply with an order under Article 6-3 (5)
or 7 (2) (hereinafter referred to as the
"corrective order") within the specified period. In this case, the maximum periodic penalty
payment per day shall not exceed 3/1,000 of the purchase price of the relevant shares,
but in the cases not related to a stockholding,
its amount shall not exceed 100 million
won.
(2) The time period subject to imposition of the periodic penalty payment as referred to
under paragraph (1) shall be from the day
immediately following the period set forth in
the original corrective order to the day on which the corrective order is performed.
In this
case, the periodic penalty payment shall be imposed within 30 days from the following
day to the expiry period set forth
in the corrective order, except when there are special
circumstances.
(3) Article 37-2 (4) shall apply to the collection of the periodic penalty payment.
(4) Necessary matters for the levy, payment,
or return of the periodic penalty payment shall
be prescribed by the Presidential Decree . [Newly enacted on February 9, 2004]
(Issuance of Stocks)
Article 8
The Telecommunications Business Act
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A common carrier shall issue registered stocks only.
Article 9
(1) A common carrier shall install its telecommunications facilities and commence its business
within the period set forth by the
KCC.
(2) The KCC may, when the common carrier is unable to commence its business within the
period set forth under paragraph (1) due
to natural disaster, earthquake, and other
unavoidable reasons, extend the relevant period only once based upon an application by
the common carrier.
Deleted.
(Addition of Service and Modification of License)
Article 10
(1) A common carrier shall obtain a modified license from the KCC that satisfies the
requirements and procedures prescribed by the
Presidential Decree to provide any
additional Common Service other than that already licensed under Article 5: Provided, That
when
a common carrier who provides Telephone Service intends to provide additional
Common Service prescribed by the Presidential Decree
using the existing facilities to the
extent that this does not interfere with the Common Service already under provision, the
carrier
shall notify the change to the KCC.
(2) When a common carrier intends to modify any important matters prescribed by the
Presidential Decree among any matters licensed
under Article 5, the carrier shall obtain a
modified license from the KCC under the conditions as prescribed by the Presidential
Decree.
(3) The provisions of Articles 5 (5) and 9 shall apply to a modified license under paragraph
(1). [Wholly amended on September 17,
1998]
(Concurrent Business)
The Telecommunications Business Act
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Article 11
(1) A common carrier shall obtain approvals from the KCC to run a business falling under any
of the following subparagraphs: Provided,
That this shall not apply to a common carrier
with turnovers of 30 billion won or less.
1.Communications equipment manufacturing business;
2. Information and communication work business under Article 2 (iii) Information and
Communication Work Business Act (excluding business
concerning the improvement and
integration of telecommunications networks); or,
3. Service business under Article 2 (vi) of the Information and Communication Work
Business Act (excluding business concerning the
improvement and integration of
telecommunications networks).
(2) The KCC shall approve of a service as prescribed under the provision of Paragraph (1)
when it is deemed that this service, to
be provided by a common carrier under the
provision of provision of Paragraph (1), is unlikely to interfere with the operation of
the
existing telecommunications businesses and that it is required for the development of
telecommunications
Article 12 Deleted.
(Business Acquisition or Corporations Merger, etc.)
Article 13
(1) Any person falling under any of the following subparagraphs shall be authorized by the
KCC as prescribed under the Ordinance
of the Ministry of Information and
Communication: Provided, That, in case where the person intends to sell
telecommunications line
facilities except for the main telecommunications line facilities
prescribed by the Presidential Decree, it shall notify the KCC
thereon as prescribed by the
Presidential Decree. 1. Any person who intends to acquire a part or all of the business from a common
carrier;
2. Any person who intends to have its corporation merged with another corporation that
is a common carrier;
The Telecommunications Business Act
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3. A common carrier that intends to sell the telecommunications line facilities required for
providing a Common Service with a license;
or
4. Any person who holds 15/100 or more of the total number of issued stocks by a
common carrier when combined with the stocks held
by any specially interested
persons or any person who intends to become the largest stockholder of a common
carrier.
(2) A common carrier shall obtain an approval from the KCC when wanting to found a
corporation that provides a part of the Common
Service among the multiple licensed
Common Services as prescribed by the Presidential Decree.
(3) The KCC shall comprehensively examine all the matters falling under each of the following
subparagraphs when authorizing or
granting an approval pursuant to paragraph (1) or (2):
1. The propriety of financial, technical and business-operational capability;
2. The propriety of the management of communication services resources, such as radio
frequencies and Telecommunication numbers,
etc.;
3. The impact on competition of the common business;
4. The User Protection; and
5. The impact on the public interest such as the utilization of Telecommunications facilities
and networks, the efficiency of research
and development, and the international
competitiveness of the telecommunications industry, etc.
(4) The KCC shall determine and
announce matters necessary for the detailed examination
criteria and the examination procedures under paragraph (3).
(5) Any person who has acquired the business of a common carrier by obtaining an
authorization under paragraph (1), or a corporation
that has survived a merger, or
founded as a result of a merger or established by obtaining an approval under paragraph
(2), shall
succeed the status related to the license of the relevant common business.
(6) The KCC may attach conditions that are required to
ensure fair competition and user
protection when granting authorization or approval under paragraph (1) or (2),
respectively.
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application reviewed by the Information and Communication Policy Review Committee
pursuant to Article 44-2 of the Framework Act
on Telecommunications, and shall consult
with the Fair Trade Commission.
(8) Article 5-2 shall apply both to the authorization under paragraph (1) and to the approval
under paragraph (2).
(10) Any person who intends to obtain an authorization or an approval as prescribed under
paragraph (1) or (2), respectively, shall
not integrate communications networks, appoint
officers, or take any other follow-up measures, including those for the performance
of the
contract on business acquisition, merger, or sale of facilities, or for the establishment of a
corporation, before obtaining
such an authorization or an approval.
Article 14
(1) A common carrier shall, in case where he intends to suspend or discontinue the whole or
part of its common business, notice
the users at least sixty days prior to the intended
date of suspension or discontinuance and obtain approval from the KCC of such
suspension or discontinuance.
(3) The KCC shall, in case where an application for approval under paragraph (1) is made, and
where deemed that suspension or discontinuance
of the relevant business is likely to
harm the public interests, not grant the relevant approval.
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(Revocation of License, etc.)
Article 15
(1) The KCC may, in case where a common carrier falls under any of the following
subparagraphs, revoke the relevant license or order
to suspend the whole or part of the
business for a period of up to one year 1. Where the carrier has obtained a license by fraud or by other illegal means;
2. Where the carrier has failed to perform the conditions under Articles 5 (5) and 13(6);
3. Where the carrier has failed to observe the orders under Article 7 (2);
4. Where the carrier has failed to commence a business within the period under Article 9
(1) (in case of obtaining an extension of
the period under Article 9(2), the extended
period);
5. When the carrier has failed to comply with the terms and conditions that was
authorized or notified pursuant to Article 29 (1);
6. When the carrier has failed to comply with corrective orders under Article 37 (1) or 65
(1) without any justifiable reasons.
(4) Criteria and procedures for the dispositions and other necessary matters under paragraph
(1) shall be determined by the Presidential
Decree.
Article 16 Deleted on
SECTION 3 Deleted on
Article 17 Deleted on
Article 18 Deleted on
SECTION 4 Service-Based Business and Value-Added Business
(Registration of Service-based Carrier)
Article 19
The Telecommunications Business Act
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(1) A person who intends to run a service-based business shall satisfy and register the
following requirements with the KCC (including
registration via information and
communications network) as specified under the Presidential Decree:
1. Financial and technical capability;
2. User protection plan; and
3. Business plan and other matters as determined by the Presidential Decree.
(2) The KCC may, upon receipt of registration of a service-based
business under paragraph (1),
attach conditions necessary for the promotion of fair competition, protection of users,
improvement
of service quality, efficient use of information and communications resources
etc.
(4) Procedures, requirements and other necessary matters for registration under paragraph (1)
shall be prescribed by the Presidential
Decree.
Article 20 Deleted on
(Notification of Value-Added Carrier, etc.)
Article 21
A person who intends to run a value-added business shall notify to the KCC (including
notification through the information and communications
networks) pursuant to the
requirements and procedures prescribed by the Presidential Decree. Provided, That this shall
not apply
to a common carrier which intends to run a value-added business or to a
small-size value-added business according to the criteria
prescribed by the Presidential Decree,
including the size of telecommunications facilities in operation, etc.
(Modification of Registered or Notified Matters)
Article 22
A person who has registered as a service-based business under Article 19 (hereinafter referred
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to as the "service-based carrier") or who has notified as a value-added business under Article
21 (hereinafter referred to as the
"value-added carrier") shall, when he intends to modify the
matters as determined by the Presidential Decree from among the relevant
registered or
notified matters, make in advance a modified registration or modified notification to the KCC
(including modified
registrations or modified notification through the information and
communication networks) as prescribed by the Presidential Decree.
Article 24 Deleted on May 24, 1999
Article 24-2 Deleted on May 24, 1999
(Transfer, Acquisition, etc. of Business)
Article 25
In case where there exists a transfer or acquisition of the whole of part of a service-based
business or a value-added business,
or a merger or succession of a corporation which is a
service-based carrier or a value-added carrier, the person who has acquired
the relevant
business, the corporation surviving the merger, the corporation founded by the merger, or the
successor shall notify
thereon to the KCC (including notification through the information and
communications networks) pursuant to the requirements and
procedures prescribed by the
Presidential Decree.
Article 26
In case where there have existed a transfer or acquisition of a service-based business or a
value-added business, a merger of a
corporation which is a service-based carrier or a
value-added carrier, or a succession of a value-added business under Article 25,
the person
who has acquired the relevant business, the corporation surviving the merger, the corporation
founded by the merger,
or the successor shall succeed to the status of a former service-based
carrier or a value-added carrier.
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(Suspension, Discontinuance of Business, etc)
Article 27
(1) A service-based carrier or a value-added carrier shall, in case where it intends to suspend
or discontinue the whole or part
of its business, notice the users of the relevant contents
and notify thereon to the KCC not later than thirty days prior to the
scheduled date of
the relevant suspension or discontinuance (including report through the information and
communication networks).
(2) Where a corporation which is a service-based carrier or a value-added carrier is dissolved
for reasons other than a merger,
a relevant liquidator (referred to a trustee in bankruptcy)
shall notify thereon without delay to the KCC (including notification
through the
information and communications networks).
(Registration Revocation and Order for Closedown of Business)
Article 28
(1) The KCC may, when a service-based carrier falls under any of the following subparagraphs,
revoke its registration, or order
to suspend its business by specifying the period of not
more than one year: Provided, That the KCC shall revoke the registration
when it falls
under subparagraph 1. 1. When the carrier has registered its business by fraud or other illegal means;
2. When the carrier fails to commence its business within one year from the date on
which its business is registered pursuant to
Article 19 (1) or has continually suspends
its service for over one year;
3. When the carrier has failed to perform the conditions under Article 19 (2);
4. Deleted on 5. When the carrier fails to comply with a corrective order under Article 37 (1) or 65 (1)
without any justifiable reasons; and
6. Deleted on 7. Deleted on
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(2) The KCC may, when a value-added carrier falls under any of the following subparagraphs,
order the carrier to discontinue its
business or suspend its business by specifying a period
of not more than one year: Provided, That where the carrier falls under
subparagraph 1,
the KCC shall order to discontinue the business. 1. When the carrier makes a notification by fraud or other illegal means;
2. When the carrier fails to commence its business within one year from the date of
notification under Article 21 or when the carrier
has suspended its service for over one
year;
3. Deleted on 4. When the carrier fails to comply with a corrective order under Article 37 (1) or 65 (1)
without any justifiable reasons; and
5. Deleted on
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CHAPTER III TELECOMMUNICATIONS OPERATION
(Notification of Terms and Conditions, etc.)
Article 29
(1) A common carrier shall set forth service rate and other terms for use by Service type with
respect to the Telecommunications
Service which the carrier intends to provide (hereinafter
referred to as the "terms and conditions"), and notify thereon (including
a modified
notification) to the KCC: Provided, That in a case of a common carrier whose size of
business and market share satisfy
the criteria prescribed by the Presidential Decree shall
obtain an authorization from the KCC (including a modified authorization).
(3) The KCC shall authorize the terms and conditions pursuant to the proviso of paragraph (1)
when it satisfies the criteria under
each of the following subparagraphs: 1. The Telecommunications Service rates shall be calculated reasonably in consideration of
the supply costs, profits, classification
of cost and profits by Telecommunications Service
type, cost saving by Service-providing method, and impact on fair competition
environment;
2. Deleted on 3. The matters on the responsibility of common carrier and its users and cost-sharing
methods for the installation of telecommunications
facilities and other works shall not
be unfairly adverse to the users.
4. The types of use of the telecommunications line facilities by other telecommunications
carrier or users shall not be unduly restricted;
5. Unduly discriminatory treatment shall not be inflicted on specific persons; and
6. Matters on securing of the important communications under Article 55 shall be
considered to ensure that government functions are
efficiently continued.
(4) Deleted on
(5) The terms and conditions under paragraph (1) shall be apply to the use of a common
carrier's telecommunications line facilities
by a service-based carrier or a value-added
carrier.
The Telecommunications Business Act
- 23 -
(6) Any person who intends to notify (including a modified notification) or obtain an
authorization (including a modified authorization)
for the terms and conditions of
Telecommunications Service under paragraph (1) shall submit to the KCC the data showing
the basis
for calculation of service rates (including, in case of modification, a table
comparing the old and new details), including subscription
rates, the basic rates and
usage rates, Value-added Service rates, net cost, etc.
Article 30 Deleted on
Article 31 Deleted on
(Discount Rates)
Article 32
A common Telecommunication may discount the Telecommunications Service rates when
used for national security, disaster relief, social
welfare or the public interest as prescribed by
the Presidential Decree.
Article 32-2
No one shall intermediate other's communications or provide for other's communications by
making use the Telecommunications Service
provided by a telecommunications
Telecommunication : Provided, That the same shall not apply to the cases falling under any of
the following subparagraphs: 1. When the service is required for disaster prevention or relief, for securing transportation,
communication and power supply, and
for maintaining order during a national
emergency;
2. When Telecommunications Service is offered to customers incidentally while operating
business other than telecommunications business;
3. When Telecommunications Service is offered on a trial basis for the purpose of
developing and marketing Telecommunications facilities,
including terminal devices, etc.
that enable the trial use of Telecommunications Service;
4. When any user permits any third party to use a service to the extent that the latter
The Telecommunications Business Act
- 24 -
does not use repeatedly; and,
5. In such cases when it is necessary for the public interest or when the
telecommunications Telecommunication is not interfered
as prescribed by the
Presidential Decree. [Newly enacted on December 30, 1996]
Article 32-3 Deleted on
(Use of Transmission, Line Facilities, etc.)
Article 32-4
(1) A system Telecommunication , network Telecommunication , or a relay Telecommunication
may, under the Broadcasting Act, provide
their transmission or line facilities or cable
broadcasting facilities as prescribed by the Presidential Decree to common
Telecommunication
s.
(4) Article 25 (2) through (6) of the Framework Act on Telecommunications shall apply to
Service provided pursuant to paragraph
(2).
(User Protection)
Article 33
(1) Deleted on May 24, 1999.
(2) A Telecommunications Telecommunication shall take a prompt measure on the reasonable
suggestions or complaints raised by users
with respect to its Telecommunications Service.
In this case, if it is difficult to take a prompt measure, the Telecommunication
shall
notice the users of the reason thereof and the schedule for measures.
(3) Compensation shall be made pursuant to Article
33-2 for damages inflicted by the
occurrence of circumstances that arouse such opinions or complaints and by such delayed
The Telecommunications
Business Act
- 25 -
processing as specified under the provision of Paragraph (2).
(Damage Compensation)
Article 33-2
A telecommunications Telecommunication shall compensate any damages the
Telecommunication inflicts on the users in providing the
relevant Telecommunications Service:
Provided, That if such damages are attributable to force majeure or to causes attributable
to
the user's intent or negligence, the telecommunications carrier's liability for compensation shall
be reduced or exempted. [Newly
enacted on December 30, 1996]
(Procedure for Damage Compensation and Request for Ruling)
Article 33-3
(1) In compensating damage under Article 33-2, consultation shall be made with the recipient
of such compensation.
- 26 -
CHAPTER IV PROMOTION OF COMPETITION FOR TELECOMMUNICATIONS BUSINESS
(Promotion of Competition)
Article 33-4
(1) The KCC shall strive to develop an efficient competition system and to promote an
environment of fair competition in the telecommunications
business.
(2) The KCC shall conduct an annual assessment of the competitive situation of common
business in order to formulate policies for
the establishment of an efficient competition
system and to promote an environment of fair competition in the telecommunications
business as specified in paragraph (1).
Article 33-5
(1) A common carrier may, upon receipt of a request for the provision of telecommunications
facilities from other common carriers,
provide its telecommunications facilities by
concluding an agreement.
(2) Notwithstanding paragraph (1), a common carrier falling under any of the following
subparagraphs shall, upon receipt of a request
under paragraph (1), provide
telecommunications facilities by concluding an agreement.
1. A common carrier who possesses facilities which are essential to other
telecommunications carriers in providing Telecommunications
Service; or
2. A common carrier whose business size, market share, etc. of its Common Service satisfy
the criteria as specified by the Presidential
Decree.
(3) The KCC shall set forth and announce the scope of the Telecommunications facilities,
conditions, procedures and methods
for the provision of facilities, and the criteria for
calculating charges under paragraphs (1) and (2). In such a case, the scope
of the
telecommunications facilities to be prescribed under paragraph (2) shall be determined in
The Telecommunications Business
Act
- 27 -
consideration of the demand for Telecommunications facilities by the other common
carriers falling under each subparagraph of the
same paragraph.
(4) A common carrier who is provided with the telecommunications facilities may install
devices to enhance their efficiency within
the limit necessary for providing its licensed
Telecommunications Service.
(5) Deleted on
Article 33-6
(1) A common carrier shall, in case where other telecommunications carriers as determined
and announced by the KCC request for a
joint utilization with respect to the lines
installed in the section ranging from the exchange facilities directly connected to
the
premises of users (hereinafter referred to as "subscriber lines" in this Article), allow it.
(2) The KCC shall set forth and announce the scope of local loop unbundling (LLU) under
paragraph (1), its conditions, procedures
and methods, and the criteria for charge
calculation.
(3) Deleted on
(1) A common carrier may, upon a receipt of a request for the joint utilization of radio
communications facilities (hereinafter
referred to as "joint utilization") from other common
carriers, allow it by concluding an agreement In such a case, the charges
to be
determined and announced by the KCC for joint utilization among the common carriers
shall be calculated and settled accounts
in a fair and reasonable manner.
(2) The common carriers as designated and announced by the KCC shall, upon receipt of a
request for the joint utilization from other
common carriers as designated and announced
by the KCC, allow it by concluding an agreement, notwithstanding the provisions of
paragraph (1), in order to enhance the efficiency of the telecommunication business and
The Telecommunications Business Act
- 28 -
to protect the users.
(3) The KCC shall determine and announce the criteria for calculating the charges for joint
utilization under the latter part of
paragraph (1) and its procedures, payment method, etc.
and the scope of the joint utilization under paragraph (2), and its conditions,
procedures
and methods, the criteria for calculation of charges, etc.
(4) Deleted on
Article 34
(1) A telecommunications carrier may allow the interconnection by concluding an agreement,
upon a request from other telecommunications
carriers for an interconnection of
telecommunication facilities.
(2) The KCC shall determine and announce the scope of interconnection of
telecommunications facilities, conditions, procedures and
methods, criteria for calculation of
charges, etc. under paragraph (1).
1. A common carrier who possesses facilities which are essential to other
telecommunications carriers in providing Telecommunications
Service; or
2. A common carrier whose business size, market share, etc. of its Common Service satisfy
the criteria as specified by the Presidential
Decree.
(4) Deleted on
Article 34-2
(1) The charge for interconnection shall be mutually calculated in a fair and proper manner
and deducted from each other's accounts.
The detailed criteria for such calculation,
procedures and payment methods shall be governed by the standards laid out under
Article
34 (2).
(2) A common carrier may mutually settle the interconnection charge by deducting it from
The Telecommunications Business Act
- 29 -
each other's accounts as prescribed by the specified criteria under Article 34 (2), if the
carrier has suffered any disadvantage
due to the causes not attributable to its part, in the
method of interconnection, quality of interconnected calls, or provision
of information
required for interconnection, etc. [Newly enacted on December 30, 1996]
(Joint Use of Telecommunications Facilities,
etc.)
Article 34-3
(1) A common carrier may allow access to or joint use of the telecommunications facilities or
establishments by concluding an agreement,
upon receipt of a request from other
telecommunications carriers for an access to or a joint use of the telecommunications
facilities
or establishments, such as duct, cable, poles, or station buildings of the relevant
common carrier, for installing or operating
facilities required for interconnection of their
telecommunications facilities; or
(2) The KCC shall determine and announce the scope, conditions, procedures and methods for
an access to or a joint use of the telecommunications
facilities or establishments, and the
criteria for calculating charges under paragraph (1). 1. A common carrier who possesses facilities which are essential to other
telecommunications carriers in providing Telecommunications
Service; or
2. A common carrier whose business size, market share, etc. of its Common Service satisfy
the criteria as specified by the Presidential
Decree.
(4) Deleted on
Article 34-4
(1) A common carrier may provide requested information by concluding an agreement, upon a
receipt of request from other telecommunications
carriers for the provision of information
related to technological information or the user's personal identification which are required
for providing telecommunications facilities, interconnection, joint use, imposition and
collection of rates, or guide to the telecommunications
numbers.
28, 1997>
(2) The KCC shall determine and announce the scope, conditions, procedures and methods for
the provision of information, and the
criteria for the calculation of charges under
paragraph (1).
(3) Notwithstanding the provision of paragraph (1), a common carrier falling under any of the
following subparagraphs shall provide
the requested information by concluding an
agreement if requested under the provision of paragraph (1):
1. A common carrier who possesses facilities which are essential to other
telecommunications carriers in providing Telecommunications
Service; or
2. A common carrier whose business size, market share, etc. of its Common Service satisfy
the criteria as specified by the Presidential
Decree.
(4) A common carrier under paragraph (3) shall set forth the technical criteria required for a
use by other telecommunications
carriers or their users by means of connecting a terminal
device and other telecommunications facilities to the relevant telecommunications
facilities,
the criteria for use and provision, and other criteria necessary for a creation of a fair
competition environment,
and make announcement thereof after obtaining an approval
from the KCC.
(5) Deleted on
Article 34-5
(1) A telecommunications carrier shall not disclose any of the information obtained from
individual users in the course of providing
the Service, telecommunications facilities or
interconnection: Provided, That the same shall not apply when it is disclosed with
the
user's consent or under a lawful procedure pursuant to the provisions of the Acts.
(2) A telecommunications carrier shall use
the information obtained under Article 34-4 only for
the purpose for which it was provided, and shall not use it unjustly or disclose
it to any
third parties. [Newly enacted on December 30, 1996]
(Notification of Agreement on Interconnection, etc.)
Article 34-6
The Telecommunications Business Act
- 31 -
(1) A common carrier shall conclude an agreement under Article 33-5 (1) and (2), the first
part of 33-7 (1), 34 (1), 34-3 (1) or
34-4 (1) and notify it to the KCC within ninety days
unless there exists any extraordinary reasons, upon receipt of a request from
other
Telecommunications carrier for a provision, a joint utilization, an interconnection or a joint
use of telecommunications
facilities, or a provision of information. The same apply when
the agreement is amended or terminated.
(2) Notwithstanding the provision of paragraph (1), in case of an agreement in which a
common carrier under the latter part of Article
33-7 (1) and (2), 34 (3), 34-3 (3) or 34-4
(3) is a party concerned, an authorization of the KCC shall be obtained.
(4) The KCC may, if any application for authorization referred to in paragraph (2) needs
supplemented, order such application for
authorization supplemented for a specified
period.
Article 35
(1) A telecommunications carrier may make an application to the KCC for a ruling under
Article 40-2 of the Framework Act on Telecommunications,
when an agreement between
telecommunications carriers on the provision, joint utilization, interconnection and joint use
of telecommunications
facilities, or the provision of information is not concluded or is
unable to be concluded within the period specified by Article
34-6 (1).
- 32 -
telecommunications facilities, or the provision of information.
(3) Deleted on
Article 36
(1) The KCC shall establish and implement the telecommunications numbering plan to ensure
the efficient provision of the Telecommunications
Service, user convenience, and to create
an environment of a fair competition among the telecommunications carriers.
(2) The KCC shall announce the plans under paragraph (1) once they have been formulated.
The same shall also apply when the plans
are revised.
Article 36-2
(1) A common carrier shall conduct accounting, prepare the business report for the preceding
year within three months from the day
on which the accounting year ends, submit them
to the KCC, and maintain the books and supporting documents as prescribed by the
Presidential Decree.
(2) The KCC shall consult with the Minister of Strategy and Finance before determining
matters concerning the accounting (practice)
under paragraph (1).
(3) The KCC may verify contents of a business report submitted by a common carrier under
paragraph (1).
- 33 -
notice the relevant common carrier of the inspection plan, including the period, reason
and details no later than seven days prior
to the expected inspection date.