CHAPTER I GENERAL PROVISIONS

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1 RADIO WAVES ACT Wholly Amended by Act No. 6197, Jan. 21, 2000 Amended by Act No. 6315, Dec. 29, 2000 Act No. 6893, May 29, 2003 Act No. 6909, May 29, 2003 Act No. 7264, Dec. 30, 2004 Act No. 7265, Dec. 30, 2004 Act No. 7441, Mar. 31, 2005 Act No. 7559, May 31, 2005 Act No. 7796, Dec. 29, 2005 Act No. 7815, Dec. 30, 2005 Act No. 8091, Dec. 26, 2006 Act No. 8199, Jan. 3, 2007 Act No. 8221, Jan. 3, 2007 Act No. 8486, May 25, 2007 Act No. 8770, Dec. 21, 2007 Act No. 8776, Dec. 21, 2007 Act No. 8867, Feb. 29, 2008 Act No. 9128, Jun. 13, 2008 Act No. 9455, Feb. 6, 2009 Act No. 9482, Mar. 13, 2009 Act No. 9535, Mar. 25, 2009 Act No. 9773, Jun. 9, 2009 Act No. 9780, Jun. 9, 2009 Act No , Mar. 22, 2010 Act No , Jul. 23, 2010 Act No , Apr. 7, 2011 Act No , Aug. 4, 2011

2 Act No , May 23, 2012 Act No , Mar. 23, 2013 CHAPTER I GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Act is to provide matters relating to the efficient utilization and control of radio waves to facilitate the promotion of the field relating to radio waves and serve to promote public welfare by facilitating the utilization of radio waves and the development of radio-wave technologies. Article 2 (Definitions of Terms) (1) The terms used in this Act shall be defined as follows: <Amended by Act No. 7815, Dec. 30, 2005; Act No. 8776, Dec. 21, 2007; Act No. 8867, Feb. 29, 2008; Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010> 1. The term "radio waves" means electromagnetic waves which propagate in space without any artificial guidance and vibrate at frequencies within the range determined by the International Telecommunication Union; 2. The term "distribution of frequencies" means determining the use of specified frequencies; 3. The term "allocation of frequencies" means granting specific persons the right to utilize specified frequencies; 4. The term "designation of frequencies" means designating specific frequencies to be used by a wireless station established by permission or by filing a report thereon; 4-2. The term "withdrawal of frequencies" means withdrawal of all or some of an allocation of frequencies, a designation of frequencies or an approval for use of frequencies; 4-3. The term "reallocation of frequencies" means allocation of frequencies, designation of frequencies or approval for use of frequencies after withdrawal of frequencies and in replacement thereof;

3 5. The term "wireless facilities and equipment" means electrical facilities and equipment capable of sending or receiving radio waves; 5-2. The term "wireless communications" means sending or receiving information, such as all types of signs, signals, words, images and sounds, by using radio waves; 6. The term "wireless station" means the integration of wireless facilities and equipment, and persons who operate such wireless facilities and equipment: Provided, That any wireless station established only for the purpose of receiving broadcasts shall be excluded herefrom; 7. The term "person engaged in wireless work" means any person who operates or does the work of installing wireless facilities and equipment and holds a certificate of technical qualification issued under Article 70 (2); 8. The term "installer" means any person who establishes a wireless station after obtaining permission from, or filing a report with, the Minister of Science, ICT and Future Planning; 9. The term "broadcasting station" means a wireless station established for the purpose of enabling the public to directly receive broadcasting signals; 10. The term "space station" means a wireless station established in a man-made satellite; 11. The term "earth station" means a wireless station established on earth to communicate with a space station; 12. The term "satellite network" means the integration of communications networks comprised of the space stations and the earth stations; 13. The term "satellite orbit" means the location or path of a space station; 14. The term "electromagnetic interference" means that electromagnetic waves emitted (referring to the propagation of electromagnetic energy in space) or conducted (referring to the flow of electromagnetic energy through power supply lines) by electromagnetic wave-generating

4 equipment disturb the performance of other equipment; 15. The term "electromagnetic compatibility" means when equipment that causes electromagnetic interference or is affected by electromagnetic waves, is in conformity with the standards for the prevention of and protection from electromagnetic interference under Article 47-3 (1); 16. The term "broadcasting communications equipment" means devices, apparatuses, components or lines used for broadcasting and communications equipment; 17. The term "radio wave environment" means the overall conditions whereby electromagnetic waves are distributed, such as the intensity of radio waves and noise around the human body, machinery or wireless equipment. (2) The definitions of terms used in this Act shall be governed by the Framework Act on Broadcasting Communications Development, except as otherwise provided by paragraph (1). <Newly Inserted by Act No , Jul. 23, 2010> Article 3 (Facilitating Utilization of Radio Wave Resources) The government shall formulate and implement policy measures necessary to facilitate the utilization of radio wave resources for the purpose of maximizing the utilization of limited radio wave resources and promoting the public welfare. Article 4 Deleted. <by Act No. 7815, Dec. 30, 2005> CHAPTER II SECURING RADIO WAVE RESOURCES Article 5 (Securing Radio Wave Resources) (1) In order to secure radio wave resources, the Minister of Science, ICT and Future Planning shall formulate and implement policy measures containing the following matters: <Amended by Act No , Mar. 23, 2013>

5 1. The development of technologies for utilizing new frequencies; 2. Increasing the efficient utilization of the frequencies in use; 3. The international registration of frequencies; 4. The consultations and coordination to remove and prevent radio wave interference between nations. (2) Necessary matters concerning frequencies subject to registration under paragraph (1) 3, registration expenses and registration procedures, etc. shall be prescribed by Presidential Decree. Article 6 (Improvement of Utilization Efficiency of Radio Waves Resource) (1) The Minister of Science, ICT and Future Planning shall, if necessary to facilitate fair and efficient utilization of radio wave resources, implement matters falling under each of the following subparagraphs: <Amended by Act No , Mar. 23, 2013> 1. Alteration of distribution of frequencies; 2. Withdrawal of frequencies or reallocation of frequencies; 3. Conversion to new technical modes; 4. Joint use of frequencies. (2) The Minister of Science, ICT and Future Planning may investigate or confirm a current status of use of frequency, as prescribed by Presidential Decree, in cases where necessary for implementing matters falling under each subparagraph of paragraph (1). <Amended by Act No , Mar. 23, 2013> Article 6-2 (Withdrawal of Frequencies or Reallocation of Frequencies) (1) The Minister of Science, ICT and Future Planning may execute the withdrawal of frequencies or reallocation of frequencies under Article 6 (1) 2, in cases where falling under any of the following subparagraphs: <Amended by Act No , Mar. 23, 2013> 1. Where the distribution of frequencies has been altered; 2. Where the actual record of frequency utilization has been inactive or

6 where necessity exists for elevating the efficient utilization of frequency through a readjustment of frequency band. (2) Necessary matters concerning a withdrawal of frequencies or procedures for reallocation of frequencies under paragraph (1), a judgment standard for actual record of frequency utilization, and requisite, etc. for readjustment of frequency bands shall be prescribed by Presidential Decree. (3) Where frequencies need to be newly distributed, withdrawn, or reallocated, it shall be deliberated by a frequency deliberation committee chaired by the Minister of the Office for Government Policy Coordination. <Newly Inserted by Act No , Mar. 23, 2013> (4) Necessary matters concerning the composition, operation, etc. of the frequency deliberation committee under paragraph (3) shall be determined by Presidential Decree. <Newly Inserted by Act No , Mar. 23, 2013> Article 6-3 (Management of Broadcasting Frequencies) Frequencies used for the broadcasting businesses provided for in subparagraph 2 of Article 2 of the Broadcasting Act shall be managed by the Korea Communications Commission. [This Article Newly Inserted by Act No , Mar. 23, 2013] Article 7 (Compensation for Losses, etc.) (1) In implementing withdrawal of frequencies or reallocation of frequencies under Article 6-2, the Minister of Science, ICT and Future Planning shall compensate for any loss incurred in the ordinary course of business by the relevant installer and a person who has obtained approval of frequency use under Article 19 (5) (hereinafter referred to as "installer, etc."): Provided, That the same shall not apply to the following cases: <Amended by Act No , Mar. 23, 2013> 1. Where following the request of the installer, etc.; 2. Where the International Telecommunication Union has altered the distribution of frequency, following the alteration of international

7 distribution of frequency that is to be commonly adopted by all nations; 3. Where using a frequency which is set for subordinate business (referring to the business regarding which main business is to be protected in operating the relevant frequency, and which is not to be protected from the main business; hereinafter the same shall apply). (2) The Minister of Science, ICT and Future Planning may collect the amount of compensation under paragraph (1), where losses are compensated for under the main sentence of paragraph (1), from the person who has newly obtained allocation of frequencies, designation of frequencies and approval for use of frequencies (hereinafter referred to as "new user") for the relevant frequencies. <Amended by Act No , Mar. 23, 2013> (3) When the Minister of Science, ICT and Future Planning intends to determine the amount of loss compensation under paragraph (1), it shall seek opinions from the relevant installer, etc. <Amended by Act No , Mar. 23, 2013> (4) Notwithstanding the main sentence of paragraph (1), the Minister of Science, ICT and Future Planning may have a new user directly compensate for the loss incurred to an installer, etc. <Amended by Act No , Mar. 23, 2013> (5) Where the frequencies allocated under Article 11 (1) fall under any subparagraph of Article 6-2 (1) and the Minister of Science, ICT and Future Planning has withdrawn such frequencies, it shall refund, as prescribed by Presidential Decree, the price paid for allocation of frequencies for the remainder of the utilization period under Article 15 (1): Provided, That the same shall not apply to any alteration of distribution of frequencies at the request of a person who has obtained allocation of frequencies. <Amended by Act No , Mar. 23, 2013> (6) Compensations under the main sentence of paragraph (1) and collectible amounts pursuant to paragraph (2) shall be paid out of and added to the Broadcasting Communications Development Fund under Article 24 of the

8 Framework Act on Broadcasting Communications Development (hereinafter referred to as the "Broadcasting Communications Development Fund"), and the refund of prices for allocation of frequencies under the main sentence of paragraph (5) shall be paid out of the Broadcasting Communications Development Fund and the Information and Communication Promotion Fund under Article 41 of the Information and Communications Technology Industry Promotion Act (hereinafter referred to as the "Information and Communication Promotion Fund"). <Amended by Act No , Jul. 23, 2010> (7) Necessary matters concerning the computation criteria and payment procedures of compensations under the main sentence of paragraph (1) and paragraph (4), the collection of collectible amounts under paragraph (2), and the refund of prices for allocation of frequencies and distribution under paragraph (5) shall be prescribed by Presidential Decree. <Amended by Act No , Jul. 23, 2010> Article 7-2 (Formal Objection, etc.) (1) Where installers, etc. have objections to the loss compensation money under Article 7 (1), they may file an objection with the Minister of Science, ICT and Future Planning within 30 days from the date of receiving the notice on the loss compensation money. <Amended by Act No , Mar. 23, 2013> (2) Where the Minister of Science, ICT and Future Planning has received a formal objection under paragraph (1), it shall determine whether to increase or to decrease the loss compensation money within 30 days from the date of receiving such objection, and notify, without delay, the installers, etc. who raised the formal objection of the results thereof: Provided, That where any inevitable ground exists to the contrary, it may extend such period within the scope of 30 days. <Amended by Act No , Mar. 23, 2013>

9 Article 8 (Basic Plans for Radio Waves Promotion) (1) The Minister of Science, ICT and Future Planning shall formulate a basic plan for radio waves promotion for the purpose of promoting the utilization of radio waves, developing new technology relating to radio waves and developing the radio wave broadcasting equipment industry (hereinafter referred to as "basic plan") every five years. <Amended by Act No. 9482, Mar. 13, 2009; Act No , Mar. 23, 2013> (2) The Minister of Science, ICT and Future Planning shall, when it formulates a basic plan or alters important matters determined by Presidential Decree, such as plans for the distribution of frequencies in the basic plan, finalize such plans after seeking opinions through hearings, etc. <Amended by Act No , Mar. 23, 2013> (3) The basic plan shall include the following matters: 1. Basic direction for developing the radio wave broadcasting industry; 2. Medium-and long-term plan for the utilization of frequencies; 3. Development of new radio wave resources; 4. Support for the sophistication of technologies and facilities utilizing radio waves; 5. Development and propagation of radio-wave media; 6. Development of space communications; 7. Establishment of order in the utilization of radio waves; 8. Matters relating to the standardization of radio waves; 9. Improvement of radio wave environment; 10. Other necessary matters concerning the promotion of radio wave broadcasting. (4) The Minister of Science, ICT and Future Planning shall formulate and execute a detailed implementation plan (hereinafter referred to as "implementation plan") based on the basic plan. <Amended by Act No , Mar. 23, 2013> (5) Necessary matters concerning the formulation or execution of the basic plan and implementation plan shall be prescribed by Presidential Decree.

10 CHAPTER III DISTRIBUTION AND ALLOCATION OF RADIO WAVE RESOURCES Article 9 (Distribution of Frequencies) (1) The Minister of Science, ICT and Future Planning shall take into account following matters when distributing frequencies: <Amended by Act No , Mar. 23, 2013> 1. The necessity of national security, the maintenance of order or the safety of human lives, such as national defense, public safety, the rescue of persons in trouble; 2. The domestic conditions for the utilization of frequencies, such as current status of utilization of frequencies; 3. Trends in international use of frequencies; 4. Trends in the development of radio-wave-utilization technology; 5. The demand for services utilizing radio waves. (2) Where the Minister of Science, ICT and Future Planning makes a distribution of frequencies under paragraph (1), it may distribute frequencies by dividing the business which uses frequency in the first order and that which uses frequency usage in the second order. <Amended by Act No , Mar. 23, 2013> (3) The Minister of Science, ICT and Future Planning shall, when he/she has distributed frequencies in accordance with paragraph (1), announce their distribution. The same shall apply to cases where it alters the distribution of frequencies. <Amended by Act No , Mar. 23, 2013> Article 10 (Allocation of Frequencies) (1) The Minister of Science, ICT and Future Planning may allocate frequencies to be used directly by a person who intends to run a business

11 falling under any of the following subparagrapghs. In such cases, the Minister of Science, ICT and Future Planning shall publicize the matters prescribed by Presidential Decree, such as the scope of persons who may apply for the allocation of frequencies, the usage of allocated frequency, technical mode, etc., taking into account the influence afforded to the key communications business, etc. by the relevant allocation of frequencies: <Amended by Act No , Mar. 22, 2010; Act No , Mar. 23, 2013> 1. The key communications business under Article 5 (2) of the Telecommunications Business Act; 2. The CATV broadcasting business under subparagraph 2 (b) of Article 2 of the Broadcasting Act or the signal transmission network business under subparagraph 13 of the same Article. (2) Any person who intends to obtain allocation of the frequencies publicized under paragraph (1) shall file an application for the allocation of frequencies with the Minister of Science, ICT and Future Planning, as prescribed by Presidential Decree. <Amended by Act No , Mar. 23, 2013> (3) The Minister of Science, ICT and Future Planning may, where it allocates frequencies, attach conditions to such allocation, as prescribed by Presidential Decree, to prevent the person to be allocated frequencies and persons in a special relationship with him/her prescribed by Presidential Decree from dominating radio wave resources and to facilitate competition at a proper level. <Amended by Act No , Mar. 23, 2013> (4) The Minister of Science, ICT and Future Planning may, where an application under paragraph (2) is not appropriate for the matters announced under paragraph (1) or the applicant is disqualified under Article 13, return the relevant application. <Amended by Act No , Mar. 23, 2013> (5) Deleted. <by Act No. 9482, Mar. 13, 2009> Article 11 (Allocation of Frequencies for Price)

12 (1) The Minister of Science, ICT and Future Planning may allocate the frequencies publicized under Article 10 (1) for a price determined by competition: Provided, That it may allocate the frequencies for a price calculated pursuant to the main sentence of paragraph (3), when it is deemed that there exist extraordinary circumstances, such as lack of competitive demand for the relevant frequencies: <Amended by Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> 1. through 3. Deleted. <by Act No , Jul. 23, 2010> (2) The Minister of Science, ICT and Future Planning may, when allocating frequencies under the proviso to paragraph (1), make an allocation by examining the matters described in the subparagraphs of Article 12 and the influence afforded to the key communications business by the relevant allocation of frequencies: <Amended by Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> 1. through 3. Deleted. <by Act No , Jul. 23, 2010> (3) The price for allocation of frequencies shall be computed by considering the economic value of frequencies, such as the turnover expected from the business for which the frequencies are allocated, the frequencies subject to the allocation, and the bandwidth: Provided, That when the Korea Communications Commission allocates frequencies through price competition, it may determine a minimum price of the competition, below which no one can be allocated frequencies (hereinafter referred to as "minimum competitive price"). <Amended by Act No , Jul. 23, 2010> (4) The Minister of Science, ICT and Future Planning may have a person applying for allocation of frequencies pursuant to Article 10 (2) pay a security deposit prescribed by Presidential Decree within the limit of 10/100 of the price for allocation of frequencies under the main sentence of paragraph (3) at the time he/she applies for the allocation. In such cases, if it allocates frequencies through price competition and determines the minimum competitive price pursuant to the proviso to paragraph (3), the amount of the security deposit shall be prescribed by Presidential

13 Decree within the limit of 10/100 of such minimum competitive price. <Amended by Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> (5) The Minister of Science, ICT and Future Planning shall incorporate a security deposit under paragraph (4) into the revenue of the Broadcasting Communications Development Fund or the Information and Communication Promotion Fund in cases where the person who applied for allocation of frequencies withdraws his/her application after the relevant application period for the allocation, returns the allocated frequencies without using them or engages in collusion or price competition in a fraudulent manner. <Amended by Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> (6) The price for allocation of frequencies paid by any person who is allocated frequencies under paragraph (1) shall be the revenue of the Broadcasting Communications Development Fund and the Information and Communications Promotion Fund. <Amended by Act No , Jul. 23, 2010> (7) Necessary matters concerning the methods of computing the price for allocation of frequencies, the collection procedures, the methods of determining the minimum competitive price and the distribution of revenues under paragraphs (5) and (6) shall be prescribed by Presidential Decree. <Amended by Act No , Jul. 23, 2010> Article 12 (Allocation of Frequencies through Examination) With respect to the frequencies announced in accordance with Article 10 (1), the Minister of Science, ICT and Future Planning shall, where it does not allocate the frequencies, as prescribed in Article 11, allocate such frequencies after examining matters falling under each of the following subparagraphs: <Amended by Act No , Mar. 23, 2013> 1. The efficiency of the utilization of radio wave resources; 2. The applicant's financial capability; 3. The applicant's technical capability; 4. Characteristics of frequencies to be allocated or other necessary matters

14 for the utilization of frequencies. Article 13 (Disqualification from Allocation of Frequencies) No person falling under any of the following subparagraphs shall be allocated frequencies: <Amended by Act No , Mar. 22, 2010> 1. Any person who is disqualified from establishing any wireless station under Article 20 (1); 2. Any person who intends to run a key communications business and is disqualified from the license of a key communications business under Article 7 of the Telecommunications Business Act; 3. Any person who intends to run a CATV broadcasting business or a signal transmission network business and is disqualified from permission for a CATV broadcasting business or registration for a signal transmission network business under Article 13 of the Broadcasting Act. Article 14 (Right to Utilize Frequencies) (1) Any person who has been allocated frequencies under Article 11 shall hold the right to exclusively utilize the frequencies concerned (hereinafter referred to as "right to utilize frequencies"). <Amended by Act No. 9128, Jun. 13, 2008> (2) Any person who has been allocated frequencies under Article 11 may transfer or lease the right to utilize frequencies after the period prescribed by Presidential Decree: Provided, That in cases where any cause or event prescribed by Presidential Decree, such as bankruptcy or a drastic change in economic conditions, arises in relation to a person allocated frequencies, he/she may transfer or lease his/her right to utilize the frequencies prior to the end of such period. <Amended by Act No. 9128, Jun. 13, 2008> (3) Any person who intends to transfer or lease the right to utilize frequencies under paragraph (2) shall obtain approval from the Minister of Science, ICT and Future Planning in advance, as prescribed by

15 Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (4) Where granting approval under paragraph (3), the Minister of Science, ICT and Future Planning shall take into account the matters referred to in the subparagraphs of Article 12 and may attach necessary conditions for the efficient and fair utilization of radio wave resources. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (5) Any person who has been granted approval for transfer of the right to utilize frequencies under paragraph (3) shall succeed to the status of the person allocated the frequencies under Article 11 and that of the installer (limited to the cases where a person who has been allocated frequencies has obtained permission for or filed a report with respect to the establishment of a wireless station). <Amended by Act No. 7815, Dec. 30, 2005; Act No. 8776, Dec. 21, 2007> (6) Article 13 shall apply mutatis mutandis to the disqualification of any person who intends to transfer or lease the right to utilize frequencies. <Amended by Act No. 9128, Jun. 13, 2008> (7) Notwithstanding paragraph (3), any person who has taken over all or part of the business of a key telecommunications business operator having the right to utilize frequencies after authorized by the Minister of Science, ICT and Future Planning pursuant to Article 18 of the Telecommunications Business Act or who has merged with a corporation which is a key telecommunications business operator, shall succeed to the status as the person who has been allocated the relevant frequencies. <Newly Inserted by Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> Article 15 (Utilization Period of Allocated Frequencies) (1) The Minister of Science, ICT and Future Planning shall determine a utilization period within the scope of 20 years for the frequencies allocated under Article 11, and within the scope of ten years for the frequencies allocated under Article 12, taking into account circumstances surrounding the utilization of frequencies, and announce such period.

16 <Amended by Act No , Mar. 23, 2013> (2) The utilization period of the frequencies transferred under Article 14 (2) shall be the remainder of the utilization period under paragraph (1). Article 15-2 (Revocation of Allocation of Frequencies) (1) The Minister of Science, ICT and Future Planning may revoke an allocation of frequencies where the recipient of the allocation of frequencies under Article 10 falls under any of the following subparagraphs: Provided, That the allocation of frequencies shall be revoked in cases under subparagraph 1: <Amended by Act No , Mar. 22, 2010; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> 1. Where the allocation of frequencies is made falsely or in any other unlawful manner; 2. Where the recipient of the allocation of frequencies under Article 10 is subject to the revocation of the license of a key communications business under Article 20 of the Telecommunications Business Act or the revocation of the license for CATV broadcasting business or the registration of the signal transmission network business under Article 18 of the Broadcasting Act; 3. Where the recipient of the allocation of frequencies violates the frequency usage or technical mode designated at the time when the relevant frequencies were allocated under Article 10 (1); 4. Where the recipient of the allocation of frequencies fails to perform conditions under Article 10 (3); 5. Where the recipient of the allocation of frequencies under Article 11 (1) fails to pay the price for such allocation. (2) The Minister of Science, ICT and Future Planning may order rectification only once before revoking the allocation of frequencies under paragraph (1) (excluding subparagraph 1). <Amended by Act No , Mar. 23, 2013> (3) Deleted. <by Act No. 9482, Mar. 13, 2009> [This Article Newly Inserted by Act No. 9128, Jun. 13, 2008]

17 Article 16 (Reallocation) (1) The Minister of Science, ICT and Future Planning may reallocate the frequencies the utilization period of which expires to the relevant frequency user at the time of completion of their utilization period: Provided, That the same shall not apply to any of the following cases: <Amended by Act No , Mar. 23, 2013> 1. Where the frequency user does not want such reallocation; 2. Where it is necessary to use the frequencies at issue for the purposes of national defense, public safety and the rescue of people in trouble; 3. Where the International Telecommunication Union has distributed the frequencies at issue for other business or usages; 4. Where the frequency user violates any condition under Article 10 (3). (2) Where the Minister of Science, ICT and Future Planning intends to make a reallocation under paragraph (1), he/she may have any interested parties submit their opinions. <Amended by Act No , Mar. 23, 2013> (3) Where the Minister of Science, ICT and Future Planning decides not to make any reallocation in the case of paragraph (1) 2 or 3, intends to reallocate the frequencies which have been allocated pursuant to Article 12 in return for the price in accordance with the proviso to Article 11 (1), or intends to attach any other condition, he/she shall notify the user of such frequencies of such fact one year prior to the expiration of the utilization period. <Amended by Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> (4) Paragraphs (2) through (5) (excluding provisions governing cases where the frequencies are allocated in return for a price determined by competition) shall apply mutatis mutandis to reallocation in return for the price for allocation of frequencies under the proviso to Article 11 (1), and Article 12 shall apply mutatis mutandis to other cases. <Amended by Act No , Jul. 23, 2010> (5) In case of reallocating the frequencies, the conditions referred to in Article 10 (3) may be attached thereto.

18 Article 16-2 (Additional Allocation) When any person who has already been allocated frequencies applies for frequencies of the same use and technology as the ones he/she has already been allocated, the Minister of Science, ICT and Future Planning may allocate frequencies pursuant to Article 11 or 12. <Amended by Act No , Mar. 23, 2013> [This Article Newly Inserted by Act No , Jul. 23, 2010] Article 17 (Alteration of Status) (1) If the Minister of Science, ICT and Future Planning deems the frequencies allocated after examination pursuant to Article 12 to have significant economic value and technological influence or otherwise deems it necessary to advance the fields related to radio waves, it may alter the status of the person allocated the frequencies to the person allocated the frequencies for a price under Article 11. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> (2) With respect to a person who intends to have his/her allocated frequencies altered under paragraph (1), the Minister of Science, ICT and Future Planning may require him/her to pay the amount computed according to the standards prescribed by Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (3) Deleted. <by Act No. 8776, Dec. 21, 2007> (4) Articles 10 (3) and 11 (6) shall apply mutatis mutandis to the alteration of status referred to in paragraph (1). <Amended by Act No. 9128, Jun. 13, 2008> (5) Necessary matters concerning the procedures, etc. for the alternation of status under paragraph (1) shall be prescribed by Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008> Article 18 (Ledger Managing Rights to Utilize Frequencies) (1) The Minister of Science, ICT and Future Planning shall keep and manage a ledger entered with matters relating to the right to utilize frequencies

19 (hereinafter referred to as "ledger managing rights to utilize frequencies") to efficiently manage the rights to utilize frequencies, as prescribed by Presidential Decree. <Amended by Act No , Mar. 23, 2013> (2) Any person who intends to gain access to or to obtain a copy of the ledger managing rights to utilize frequencies shall file an application thereof with the Minister of Science, ICT and Future Planning, as prescribed by Presidential Decree. <Amended by Act No , Mar. 23, 2013> (3) The ledger managing right to utilize frequencies under paragraph (1) shall be maintained and managed in an electronic method unless any special ground exists to make electronic handling impossible. CHAPTER IV UTILIZATION OF RADIO WAVE RESOURCES SECTION 1 Permission for and Operation of Wireless Station Article 19 (Establishment, etc. of Wireless Station after Receiving Permission) (1) Any person who intends to establish a wireless station shall obtain permission from the Minister of Science, ICT and Future Planning, as prescribed by Presidential Decree. The same shall apply when any person intends to change any matter specified by Presidential Decree, among the permitted matters: <Amended by Act No. 7815, Dec. 30, 2005; Act No. 8776, Dec. 21, 2007; Act No. 8867, Feb. 29, 2008; Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> 1. through 3. Deleted. <by Act No , Jul. 23, 2010> (2) Notwithstanding the former part of paragraph (1), if a person who intends to establish a wireless station to receive telecommunications services under subparagraph 6 of Article 2 of the Telecommunications Business Act as specified by Presidential Decree enters into a service contract with a

20 person who renders such telecommunications services, the wireless station concerned shall be deemed to be granted permission by the Minister of Science, ICT and Future Planning. In such cases, the latter part of paragraph (1), Articles 22, 24, 25-2, and subparagraph 2 of Article 69 (1) shall not apply. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 22, 2010; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> (3) When any operator of telecommunications business has entered into a service contract with a person who intends to establish a wireless station under paragraph (2), he/she shall notify the number of subscribers who have newly entered into a service contract and the total number of subscribers to the Minister of Science, ICT and Future Planning, as prescribed by Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (4) Deleted. <by Act No , Jul. 23, 2010> (5) Notwithstanding paragraph (1), any person who has obtained approval from the Minister of Science, ICT and Future Planning for use of frequencies, as prescribed by Presidential Decree, may establish a wireless station. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (6) Deleted. <by Act No , Jul. 23, 2010> Article 19-2 (Establishment, etc. of Wireless Station after Filing Report) (1) Notwithstanding Article 19 (1), if any person intends to establish any of the following wireless stations that are specified by Presidential Decree as not requiring to restrict their frequencies or the power delivered to the antenna in order to prevent signal interference between nations or regions, or that are not established for the purpose of safety of life, etc., the person shall report to the Minister of Science, ICT and Future Planning. The same shall also apply when the person intends to change the matters specified by Presidential Decree from among the reported matters: <Amended by Act No , Mar. 23, 2013> 1. Wireless stations which have week radio waves or for which wireless facilities do not need to be built;

21 2. Wireless stations exclusively used for reception; 3. Wireless stations established by a person who has been allocated frequencies under Article 11 or 12, to provide telecommunications services; 4. Wireless stations established for the digital multimedia broadcasting under subparagraph 1 (d) of Article 2 of the Broadcasting Act. (2) Notwithstanding paragraph (1), a person may establish a wireless station specified by Presidential Decree, including wireless stations which have week radio waves, without filing a report with the Minister of Science, ICT and Future Planning. <Amended by Act No , Mar. 23, 2013> [This Article Newly Inserted by Act No , Jul. 23, 2010] Article 20 (Disqualification from Establishment of Wireless Station) (1) Any of the following persons shall be prohibited from establishing any wireless station: Provided, That the same shall not apply where wireless stations are established under Articles 19 (2), 19-2 (1) 1 and 2, and Article 19-2 (2): <Amended by Act No. 7815, Dec. 30, 2005; Act No. 8776, Dec. 21, 2007; Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010> 1. A person who does not hold nationality of the Republic of Korea; 2. Any foreign government or its representative; 3. Any foreign corporation or foreign organization; 4. A person who has been sentenced to imprisonment without prison labor or a heavier punishment for violating this Act and for whom two years have not passed from the date on which the execution of such sentence was terminated or the exemption of such execution was confirmed; 5. A person who is in the period of a stay after having been sentenced to a stay of execution of imprisonment without prison labor or a heavier punishment for violating this Act; 6. A person who has been sentenced to a punishment for committing the crime of insurrection and foreign aggression under the Criminal Act, the crime of serving the interest of the enemy under the Military

22 Criminal Act, or the crime of violating the National Security Act, and for whom two years have not passed from the date on which the execution of such sentence was terminated or the exemption of such execution was confirmed; 7. A person for whom permission to establish a wireless station has been revoked under Article 72 (2) or who has been ordered to close the wireless station for which a report on establishment was filed and the relevant ground continues to exist. (2) The provisions of paragraph (1) 1 through 3 shall not apply to any of the following wireless stations: <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> 1. An experimental wireless station (referring to a wireless station used exclusively for conducting experiments for the development of science or technology; hereinafter the same shall apply); 2. A wireless station of a ship under Article 29 of the Ship Safety Act; 3. A wireless station operated for the domestic aviation of aircraft for which permission has been granted under the proviso to Articles 145 (proviso) and 148 of the Aviation Act; 4. Any of the following wireless stations whose establishment in any foreign nation by the government, representatives or citizens of the Republic of Korea has been permitted by such foreign nation in the same manner as such foreign nation does for its government, representatives or citizens in its territory: (a) A wireless station established in a diplomatic mission such as an embassy in which diplomatic and consular affairs of a foreign nation are carried out in the Republic of Korea for communications between specific points; (b) An amateur wireless station (referring to a wireless station used exclusively for self-training and technical research out of a personal interest in wireless technology; hereinafter the same shall apply); (c) A wireless station which renders ground mobile services and is

23 prescribed by Presidential Decree; 5. A wireless station permitted by the Minister of Science, ICT and Future Planning only during a period of international or national events held within the Republic of Korea; 6. An amateur wireless station established by any of the following persons: (a) A person who has acquired the qualification of an amateur radio operator of the Republic of Korea granted under Article 70; (b) A person who intends to operate a wireless station during his/her temporary stay in the Republic of Korea after obtaining recommendation from an organization designated by the Minister of Science, ICT and Future Planning (limited to any person who has acquired the qualification of an amateur radio operator in his/her country); 7. A wireless station which is established in an aircraft or a ship for offering telecommunications services in the relevant aircraft or ship entering or leaving the Republic of Korea. Article 20-2 (Conditions for Establishing Wireless Station) (1) Each wireless station shall satisfy the following conditions for establishment: <Amended by Act No. 8867, Feb. 29, 2008; Act No , Mar. 23, 2013> 1. The content of communications shall be appropriate for the purpose of establishment; 2. The wireless facilities shall not be provided to persons other than the installer: Provided, That the same shall not apply to any wireless station leased to any third party under Article 48 (1), wireless station established for smooth communication between persons who are closely related for business and recognized by the Minister of Science, ICT and Future Planning, or wireless station that carries out emergency communications under Article 25 (2) 4; 3. No purpose of establishment, content of communications, nor selection

24 of correspondents shall violate any Act or subordinate statute; 4. The minimum frequencies and power delivered to the antenna necessary for the achievement of the purpose of establishment shall be used; 5. The wireless facilities shall be installed at a place that does not cause any impediment to the human life, property and safety of aircraft; 6. No wireless station shall cause any inference to the operation of other wireless stations already established. (2) Necessary matters concerning the conditions for establishment according to the classification of wireless station under paragraph (3), other than those under paragraph (1), shall be prescribed by Presidential Decree. <Amended by Act No , Jul. 23, 2010> (3) Matters concerning the affairs of wireless stations and the classification of wireless stations shall be prescribed by Presidential Decree. <Newly Inserted by Act No , Jul. 23, 2010> [This Article Newly Inserted by Act No. 8776, Dec. 21, 2007] Article 21 (Procedures for Granting Permission, etc. to Establish Wireless Station) (1) Any person who intends to obtain permission to establish a wireless station under Article 19 (1) or change permitted matters (hereinafter referred to as "permission for change") shall file an application for such permission with the Minister of Science, ICT and Future Planning, as prescribed by Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> (2) The Minister of Science, ICT and Future Planning, upon receipt of an application for permission under paragraph (1), shall examine the following: <Amended by Act No. 8776, Dec. 21, 2007; Act No. 8867, Feb. 29, 2008; Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> 1. Whether the designation of frequencies is possible; 2. Whether the wireless facilities to be installed or operated are in conformity with the technical standards under Article 45; 3. Whether plans for placing persons engaged in wireless work are in

25 conformity with the standards for the qualification and placement of a fixed number of persons engaged in wireless work under Article 71; 4. Whether establishing the wireless station is in conformity with Article (3) When the Minister of Science, ICT and Future Planning deems it necessary to conduct an examination referred to in paragraph (2), he/she may require the applicant to furnish data or seek his/her opinion. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (4) The Minister of Science, ICT and Future Planning shall, if he/she deems an application is appropriate as a result of the examination under paragraph (2), grant the applicant permission to establish a wireless station or permission for change and issue a certificate of permission stating the deadline for completing the construction of the wireless station and other matters prescribed by Presidential Decree, to the applicant. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010; No , Mar. 23, 2013> (5) When the Minister of Science, ICT and Future Planning grants permission to establish a wireless station or permission for change prescribed by Presidential Decree, he/she shall publicize such fact as prescribed by Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> Article 22 (Effective Term of Permission to Establish Wireless Station and Approval for Use of Frequencies) (1) The effective term of permission to establish a wireless station under Article 19 (1) shall be prescribed by Presidential Decree within the limit of seven years, and that of approval for use of frequencies under paragraph (5) of the same Article shall be prescribed by Presidential Decree within the limit of ten years; and when the relevant period has expired, re-permission or re-approval may be rendered. <Amended Act No. 9455, Feb. 6, 2009> (2) Notwithstanding paragraph (1), the effective term of permission to establish a wireless station in any ship, aircraft or light aircraft, which is

26 mandatory under the Ship Safety Act or the Aviation Act, shall be indefinite. <Amended by Act No. 9773, Jun. 9, 2009> (3) The effective term of permission or approval under paragraph (1) shall be reckoned from the date provided for in any of the following subparagraphs: <Amended by Act No , Jul. 23, 2010> 1. For permission to establish a wireless station, the date on which an inspection certificate under the main sentence of Article 24 (3) is issued: Provided, That for permission to establish a wireless station under any subparagraph of Article 24-2 (1), the effective term shall be reckoned from the date on which the relevant permission is obtained; 2. For approval for use of frequencies, the date on which the relevant approval is obtained. (4) The procedures for re-permission or re-approval under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. Article 22-2 (Procedures for Reporting Establishment of Wireless Station, etc.) (1) Any person who intends to report the establishment of a wireless station pursuant to the former part of Article 19-2 (1) shall file a report with the Minister of Science, ICT and Future Planning before the wireless station is established. The same shall apply when any person files a report to change any reported matters (hereinafter referred to as "report on change"). <Amended by Act No , Mar. 23, 2013> (2) When the Minister of Science, ICT and Future Planning receives a report on the establishment of a wireless station or a report on change under paragraph (1), he/she shall issue a certificate of report on wireless station. <Amended by Act No , Mar. 23, 2013> [This Article Newly Inserted by Act No , Jul. 23, 2010] Article 23 (Succession of Permission) (1) Any person falling under any of the following subparagraphs shall succeed the status of the installer (excluding any person succeeding the

27 status of the installer under Article 14 (5); hereafter in this Article the same shall apply): <Amended by Act No. 8776, Dec. 21, 2007; Act No. 9128, Jun. 13, 2008> 1. The transferee, in cases where the installer transfers his/her wireless station related to his/her business while transferring his/her business; 2. A corporation that survives a merger or a corporation that is incorporated by a merger in cases where the corporation that is an installer is merged; 3. The heirs, in cases where the installer is deceased; 4. A person who operates a ship or an aircraft in cases where there is a change in the operator of the ship or aircraft equipped with a wireless station due to the transfer of the ownership of, or a lease contract, etc. for such ship or such aircraft. (2) Any person falling under paragraph (1) 1 or 2 shall obtain authorization from the Minister of Science, ICT and Future Planning, as prescribed by Presidential Decree: Provided, That in the case of a broadcasting station installer for terrestrial broadcasting business, he/she shall gain authorization from the Korea Communications Commission as prescribed by Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (3) Any person who falls under paragraph (1) 3 or 4, or any other person who intends to succeed a wireless station prescribed by Presidential Decree shall file a report thereof with the Minister of Science, ICT and Future Planning, as prescribed by Presidential Decree: Provided, That in the case of a broadcasting station installer for terrestrial broadcasting business, he/she shall report to the Korea Communications Commission as prescribed by Presidential Decree. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Mar. 23, 2013> (4) Article 20 shall apply mutatis mutandis to the disqualification of authorization under paragraph (2) and the report under paragraph (3). <Amended by Act No. 9128, Jun. 13, 2008>

28 (5) In cases where not less than two persons succeed the status of the installer through a corporate merger or inheritance, one of such persons shall be selected as the representative. <Amended by Act No. 9128, Jun. 13, 2008> Article 24 (Inspection) (1) Any of the following persons shall, if the installation of wireless facilities and equipment is completed, file a report of completion with the Minister of Science, ICT and Future Planning and then undergo an inspection to determine whether the wireless facilities and equipment installed are in conformity with the technical standards and the standards for the qualification and placement of a fixed number of persons engaged in wireless work (hereinafter referred to as "completion inspection"): Provided, That the Minister of Science, ICT and Future Planning may inspect samples of the wireless stations that are subject to establishment after filing a report thereon under Article 19-2 (1) 3 (hereinafter referred to as "sampling inspection"), when Presidential Decree so prescribes: <Amended by Act No. 8776, Dec. 21, 2007; Act No. 8867, Feb. 29, 2008; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> 1. Any person who has obtained permission for establishment or permission for change under Article 21 (4); 2. Any person who has filed a report on the establishment of a wireless station under Article 19-2 (1) 3 or 4 or a report on change under Article 22-2 (1). (2) If the Minister of Science, ICT and Future Planning receives an application for extending the deadline for completing the work stated in a certificate of permission or certificate of report on wireless station from a person falling under any of the subparagraphs of paragraph (1), it may extend such deadline when it deems the relevant reason suitable. In such cases, the total extended period shall not exceed one year. <Amended by Act No. 9128, Jun. 13, 2008; Act No , Jul. 23, 2010; Act No , Mar. 23, 2013> (3) When wireless facilities and equipment are found to conform with the

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