TELECOMMUNICATIONS BUSINESS ACT

Transcription

1 TELECOMMUNICATIONS BUSINESS ACT CHAPTER 0: GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Act is to contribute to the promotion of public welfare by encouraging sound development of telecommunications business and ensuring convenience to the users of telecommunications service through proper management of such business. Article 2 (Definitions) (1) For the purpose of this Act, <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5385, Aug. 28, 1997> 1.the term "telecommunications business operator" means a person who provides telecommunications service with holding the relevant license or making a registration or report under this Act; and 2.the term "user" means a person who has made a contract for the use of any telecommunications service with the relevant telecommunications business operator. 3. the term universal service means a basic telecommunication service which anyone within Korean territory can use regardless of time, place with a rational charge. (2) The terms used in this Act shall have be the same as defined in the Framework Act on Telecommunications, if not separately defined in the above paragraph (1). Article 3 (Duty of Providing Services, etc.) (1) A telecommunications business operator shall not refuse to provide any telecommunications service, without justifiable reasons. (2) A telecommunications business operator shall guarantee fairness, timeliness and accuracy in performing his business. (3) A telecommunications service fee shall be reasonably determined so as to ensure the development of telecommunications business and to provide the users with various and convenient telecommunications services in a fair and less costly way. Article 3-2 (Duty of Universal Service) (1) All telecommunication service providers(operator) are obliged to contribute to

2 providing universal service. (2) The detailed contents will be decided by considering the following facts 1. The progress of information and communications technology 2. The spread of telecommunications services 3. Public interest and security 4. To promote social welfare 5. To promote informatization (3) The detailed contents, service providers, the measure to build a fund for the compensation in providing the service. CHAPTER 1: TELECOMMUNICATIONS BUSINESS SECTION 1 General Provisions Article 4 (Classification of Telecommunications Businesses, etc.) (1) The telecommunications businesses shall be classified into a facilitiesbased telecommunications business, a specific telecommunications business and a value-added telecommunications business. <Amended by Act No. 5385, Aug. 28, 1997> (2) The facilities-based telecommunications business shall be the business to install telecommunications line facilities, and thereby provide telecommunications services such as telegraph and telephone service (hereinafter referred to as the "facilities-based telecommunications services"), the types and contents of which are determined by the Ordinance of the Ministry of Information and Communication, in consideration of public interest, overall industrial effect and necessity for steadily providing services. <Amended by Act No. 5220, Dec. 30, 1996> (3) The categories of specific telecommunications business shall be composed of: <Newly Inserted by Act No. 5385, Aug. 28, 1997> 1.Business which provides any facilities-based telecommunications service by using telecommunications line facilities, etc. of a person who holds a license for facilities-based telecommunications business referred to in Article 5 (hereinafter referred to as a "facilities-based telecommunications business operator"); and

3 2.Business which, installing or using telecommunications facilities in any premise determined by the Ordinance of the Ministry of Information and Communication, provides any telecommunications service therein. (4) The value-added telecommunications business shall be the business which leases telecommunications line facilities from a licensed facilities-based telecommunications business operator and provides any telecommunications business service not falling under the above paragraph (2)(hereinafter referred to as the "value-added telecommunications service"). <Amended by Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> [This Article Wholly Amended by Act No. 4903, Jan. 5, 1995] SECTION 2 Facilities-based Telecommunication Business Article 5 (License of Facilities-based Telecommunication Business Operator, etc.) (1) The person who wishes to run a facilities-based telecommunication business shall obtain a license from the Minister of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996> (2) The Minister of Information and Communication shall refer to the deliberations of the Information-Communication Policy Deliberation commission under Article 44-2 of the Framework Act on Telecommunication in case of the license of the above paragraph (1): Provided, That this shall not apply to the licence of miscellaneous business matters prescribed by the Ordinance of Ministry of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996> (3) The Minister of Information and Communication shall take the following subparagraphs into overall considerations, in case of the license of the above paragraph (1): <Amended by Act No. 5220, Dec. 30, 1996> 1.Feasibility of a supply plan of facilities-based telecommunication services; 2.Reasonableness of the scope of telecommunication facilities; 3.Financial and technical capacity; 4.Performance of technical development related to facilities-based telecommunication services to be provided; 5.Technical development plan related to facilities-based telecommunication services;

4 6.Assistance plan for technical development for promoting telecommunication; and 7.Other necessary matters for the execution of business. (4) The Minister of Information and Communication shall determine detailed examination criteria, application procedure and period for license, as to each examination subparagraphs of the above paragraph (3), and shall make public notices of them. <Amended by Act No. 5220, Dec. 30, 1996> (5) The Minister of Information and Communication may put necessary conditions on supply of services, research and development for telecommunication industry development, etc., in case of licensing the facilities-based telecommunication business of the above paragraph (1). <Amended by Act No. 5220, Dec. 30, 1996> (6) The subject of the license of the above paragraph (1) shall be limited to a juristic person. (7) The licensing procedures of the above paragraph (1) and other necessary matters shall be determined by the Ordinance of Ministry of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996> [This Article Wholly Amended by Act No. 4903, Jan. 5, 1995] Article 6 (Disqualifications for License) The person falling under any of the following subparagraphs shall not obtain a license of the facilities-based telecommunications business under Article 5: <Amended by Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> 1.A foreign government or foreign juristic person; 2.Deleted; <by Act No. 5385, Aug. 28, 1997> 3.A juristic person in which (limited to voting stocks, but including an investment equity; hereinafter the same shall apply) any one falling under any of the following items holds the stocks in excess of 49/100 of the total issued stocks: (a) A foreign government; (b) A foreigner; and (c) A juristic person in which a foreign government or foreigner holds the stocks of not lower rate than prescribed by the Presidential Decree.

5 6.A juristic person the largest stockholder(referring to the person who holds the highest percentage of voting stocks or investment equity; hereinafter the same shall apply) of which falls under any of the following items: (a) The State; (b) A local government; (c) A government-invested institution which is subject to the Framework Act on the Management of Government-Invested Institutions; and (d) A juristic person in which a person falling under any of items (a) through (c) above holds the stocks in excess of 50/100 of the total issued stocks 7.through 9. Deleted. <by Act No. 5220, Dec. 30, 1996> [This Article Wholly Amended by Act No. 4903, Jan. 5, 1995] Article 6-2 (Qualifications of Officers) The person falling under any of the following subparagraphs may not serve as the officer of a facilities-based telecommunications business operator: <Amended by Act No. 5385, Aug. 28, 1997> 1.A person who has been declared as incompetent, quasi-incompetent, or bankrupt by a court, but remains not reinstated; 2.A person who has been sentenced to a penal fine or heavier punishment for violations of this Act, the Framework Act on Telecommunications, the Radio Waves Act or the Act on Expansion of Dissemination and Promotion of Utilization of Information System, and for whom three years have not passes since the termination of execution of the sentence or the confirmation of non-execution of the sentence, or who is under the suspension of the sentence execution; and 3.A person for whom three years have not passed since his license was cancelled under Article 15 (1) or since his registration was cancelled under Article 28 (1) or he received an order for closedown of business under paragraph (2) of the same Article. In case of a juristic person, the person who performed an action which caused cancellation of license, cancellation of registration or order for closedown of business and its representative. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 7 (Restrictions on Holders of Excessive Stocks, etc.)

6 (1) When any stockholder of a licensed facilities-based telecommunications business operator under Article 5 (1) falls under the provisions of subparagraphs 3 through 6 of Article 6, he shall not exercise voting rights vested in the stocks or excess portion thereof held by him, as the case may be. (2) When a facilities-based telecommunications business operator or stockholder thereof falls under any of the subparagraphs of Article 6, then the Minister of Information and Communication may issue correction orders for the concerned matters to the said operator or stockholders thereof, by specifying the period not exceeding six months. <Amended by Act No. 5220, Dec. 30, 1996> (3) If a correction order is issued under the above paragraph (2), the relevant facilities-based telecommunications business operator or stockholder thereof shall correct the concerned matters within the specified period. (4) A facilities-based telecommunications business operator may deny the alteration of the register of members or list of employees concerning ownership portion or excessively owned portion to the stockholders falling under the provisions of subparagraphs 3 through 6 of Article 6. [This Article Wholly Amended by Act No. 4903, Jan. 5, 1995] Article 8 (Issuance of Stocks) A facilities-based telecommunications business operator shall issue registered stocks, in case of issuance of stocks. <Amended by Act No. 4903, Jan. 5, 1995> Article 9 (Duties of Commencing Business) (1) A facilities-based telecommunications business operator shall install telecommunications facilities and commence the business within the period as prescribed by the Ordinance of the Ministry of Information and Communication. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> (2) The Minister of Information and Communication may extend the period of commencement only once, based on the applications of the facilities-based telecommunication business operator in case of not being able to commence business within the period of the above paragraph (1) due to natural disasters and other unavoidable reasons. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> Article 10 (Addition of Service and Change in License)

7 (1) when the facilities-based telecommunication business operator(provider) wished to add facilities-based services to the already(existing) licenced facilities-based services, he shall obtain the permission for changes prescribed by the ordinance of Minister of Information and Communication. But a facilities-based service provider who already provides a telephone service wishes to add other facilities-based service prescribed in the ordinance of Minister of Information and Communication without causing any trouble to the existing services and adding any facility, he shall report to Minister of Information and Communication. (2) The facilities-based service provider shall get the permission of the Minister when he wishes to change any important matter prescribed by the Ordinance of the Minister among the already licenced matters according to the Ordinance of the Minister. (3) The provisions of Article 5 (5) and Article 9 shall be applied to the permission to change according to the paragraph (1). Article 11 (Cross-Ownership of Business) (1) The facilities-based telecommunication business operator shall obtain the approval from the Minister of Information and Communication, in case of running a business other than that of telecommunication: Provided, That this shall not apply to the business prescribed by the Presidential Decree. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> (2) The Minister of Information and Communication shall approve the above paragraph (1), when it is believed that the facilities-based telecommunication business operator does not cause any impediments to the operation of telecommunication service by running the business of the above paragraph (1) and that such is necessary for the development of telecommunication. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> Article 12 (Commission of Services) When it is deemed necessary for operation of the telecommunication business, the facilities-based telecommunication business operator may commission the part of the services to any other person for performance of telecommunication service after reporting first to the Minister of Information and Communication: Provided, But in case of national emergency telecommunication network and national basic information system, he shall get the permission of the Minister.<Amended by Act No. 5564, Sep. 17, 1998; Act No. 5220, Dec. 30, 1996> Article 13 (Transfer, Acquisition of Business and Merger of Juristic Persons) (1) (1)When the person wishes to acquire the whore or part of business of other

8 facilitated-based provider or to merge a juristic person of other facilitated-based provider, he shall get the authorization of the Minister according to the Ordinance of the Minister <Amended by Act No. 4903, Jan. 5, 1995; Amended by Act No. 5564, Sep. 17, 1998> (2) When the facilitated-based service provider intends to establish a juristic person in order to provide some of the plurally licenced facilities-based businesses, he shall get the permission of the Minister according to the ordinance of the Minister. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> (3) The person who acquired the telecommunication business, the existing juristic person after merger or the newly founded juristic person through merger according to the above paragraph (1) and the juristic person established with authorization of the above paragraph (2) shall succeed to the status related to the licence of the concerned facilities-based service. <Amended by Act No. 4903, Jan. 5, 1995> (4) When the Minister intends to give his authorization according to the above paragraph (1), in advance he shall receive the deliberation of the Information and Communications Policy Deliberation Council established by the Article 44-(2) of Framework Act on Telecommunications. (5) The Article 6 shall be applied to the authorization with the above paragraph (1) and the permission with the above paragraph (2). Article 14 (Suspension, Closedown of Business or Dissolution of Juristic Persons, etc.) (1) The facilities-based telecommunication business operator shall obtain the approval from Minister of Information and Communication in case of suspension or discontinuance of the whole or part of the facilities-based telecommunication business. <Amended by Act No. 5220, Dec. 30, 1996> (2) The dissolution decision of a juristic person and the consent on dissolution by all employees in case the juristic person is the facilitiesbased telecommunication business operator shall be approved by the Minister of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996> (3) The Minister of Information and Communication shall not approve nor authorize the application for approval and authorization from the above paragraph (1) or (2), when public interests may be harmed by the suspension or discontinuance of such a business or by dissolution of a juristic person. <Amended by Act No. 5220, Dec. 30, 1996> [This Article Wholly Amended by Act No. 4903, Jan. 5, 1995]

9 Article 15 (Cancellation of License, etc.) (1) The Minister of Information and Communication may cancel the license or give suspension orders of the whole or part of the business within a designated period of no more than one year when the facilities-based telecommunications business operator falls under any of the following subpar agraphs: <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> 1.In case of obtaining a license by deception or other illegitimate manners; 2.In case of not complying with the conditions under Article 5 (5); 3.In case of not following the orders under Article 7 (2); 4.In case of not commencing business within the period under Article 9 (1) (in case of extending the period under Article 9 (2), an extended period); 5.In case of not complying with the standardized contract for users that is authorized or reported under Article 29 (1); and 6.In case of violations against this Act, the Framework Act on Telecommunications, the Radio Waves Act, the Act on Expansion of Dissemination and Promotion of Utilization of Information System, the Framework Act on Informatization Promotion or orders under these Acts. (2) The criteria and procedures for measures, and other necessary matters of the above paragraph (1) shall be determined by the Ordinance of Ministry of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996> Articles 17 and 18 Deleted. <by Act No. 4903, Jan. 5, 1995> SECTION 4 Specific Telecommunications Business and Value-Added Telecommunications Business Article 19 (Registration of Specific Telecommunications Business Operator) (1) Any person who intends to provide a specific telecommunications service shall register the following matters with the Minister of Information and Communication under the conditions as determined by the Ordinance of the Ministry of Information and Communication: 1.Finances and technical capacity;

10 2.User protection plan; and 3.Other matters such as a business project as determined by the Ordinance of the Ministry of Information and Communication. (2) When the Minister of Information and Communication deals with a registration of the business of a specific telecommunications service referred to in paragraph (1), he may, if necessary, set any condition either to the providing of services, or to R & D for the progress of the telecommunications industry. (3) Only juristic persons are eligible to be registered as a specific telecommunications business operator referred to in paragraph (1). (4) The procedures and requirements for registration referred to in paragraph (1) or other necessary matters shall be determined by the Ordinance of the Ministry of Information and Communication. [This Article Newly Inserted by Act No. 5385, Aug. 28, 1997] Article 20 (Prohibition of Forcing Third Person to Use Telecommunications Facilities in Premises) Any person who operates business listed in Article 4 (3) 2 or an owner or lessor of buildings or establishments in the premises of which telecommunications facilities are installed shall not force a third person to use telecommunications facilities installed in the premises. [This Article Newly Inserted by Act No. 5385, Aug. 28, 1997] Article 21 (Report of Value-Added Telecommunications business operator, etc.) The person intending to run a value-added telecommunications business shall report to the Minister of Information and Communication, as prescribed by the Presidential Decree: Provided, That this shall not apply to the case in which the facilities-based telecommunications business operator runs a value-added telecommunications business and to other minor businesses prescribed by the Presidential Decree. <Amended by Act No. 5220, Dec. 30, 1996> [This Article Wholly Amended by Act No. 4903, Jan. 5, 1995] Article 22 (Change of Registered or Reported Matters) Where a person who is registered as a specific telecommunications business operator

11 under Article 19 (hereinafter referred to as a "specific telecommunications business operator") or has made report so as to be a value-added telecommunications business operator under Article 21 (hereinafter referred to as a "value-added telecommunications business operator") intends to change such any of registered or reported matters as determined by the Ordinance of the Ministry of Information and Communication, he shall, in advance, make a registration or report of said matter to be changed to the Minister of Information and Communication pursuant to the relevant provisions of the said Ordinance. [This Article Wholly Amended by Act No. 5385, Aug. 28, 1997] Article 23 Deleted. <by Act No. 4903, Jan. 5, 1995> Article 24 (Disqualifications for Specific Telecommunications business operator and its Officer) (1) Any person for whom two years have not elapsed since his licence was cancelled under Article 15 (1) or since his registration was cancelled under Article 28 (1) or an order for closedown of business was issued to him under paragraph (2) of the same Article shall not make a registration as a specific telecommunications business operator referred to in Article 19 (1). (2) No person who falls under any of the following subparagraphs shall be disqualified for the officer of a specific telecommunications business operator: 1.Any person who has been declared as incompetent, quasi-incompetent, or bankrupt by court, but remains not reinstated; 2.Any person who has been sentenced to imprisonment without prison labor or heavier punishment in violation of this Act, the Framework Act on Telecommunications, the Radio Waves Act or the Act on Expansion of Dissemination and Promotion of Utilization of Information System, and for whom two years have not elapsed since the termination of execution of the sentence (including the case where the execution is deemed to have been terminated) or the confirmation of non-execution of the sentence, or who is under the suspension of the sentence execution; 3.Any person who has been sentenced to a fine in violation of this Act, the Framework Act on Telecommunications, the Radio Waves Act or the Act on Expansion of Dissemination and Promotion of Utilization of Information System and for whom two years have not elapsed; and 4.Any person for whom two years have not elapsed since his license was cancelled under Article 15 (1), or since his registration was cancelled under Article 28 (1) or an

12 order for closedown of business was issued to him under paragraph (2) of the same Article. In case of a juristic person, any person who has performed an action to cause a cancellation of license, cancellation of registration, or order of closedown of business and his representative. [This Article Newly Inserted by Act No. 5385, Aug. 28, 1997] Article 24-2 (Disqualifications for Value-Added Telecommunications Business Operator) (1) The person falling under any of the following subparagraphs shall not be qualified for a value-added telecommunications business operator: <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5385, Aug. 28, 1997> 1.A person who has been declared as incompetent, quasi-incompetent, or bankrupt by court, but remains not reinstated; 2.A person who is sentenced to a fine or severer punishment in violation of this Act, the Framework Act on Telecommunications, the Radio Waves Act, or the Act on Dissemination of Expansion and Promotion of Utilization of Information System and for whom two years have not elapsed since the execution of the sentence was terminated or the final decision on non-execution of the sentence was made, or who is under the suspension of the sentence execution; 3.A person for whom two years have not elapsed since his license was cancelled under Article 15 (1), or since his registration was cancelled under Article 28 (1) or an order for closedown of business was issued to him under paragraph (2) of the same Article; and 4.A juristic person any of the officers of which falls under any of subparagraphs 1 through 3 above. (2) Deleted. <by Act No. 4903, Jan. 5, 1995> Article 25 (Transfer, Acquisition of Business, etc.) In cases of transfer or acquisition of the whole or part of a specific telecommunications business or a value-added telecommunications business or merger or inheritance of juristic persons which are specific telecommunications business operators or value-added telecommunications business operators, the person acquiring the business, the existing juristic person after merger, juristic person founded by merger or the inheritor shall make a registration or report to the Minister of Information and Communication, pursuant to the Ordinance of Ministry of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996; Act No.

13 5385, Aug. 28, 1997> Article 26 (Succession of Business) In cases of transfer or acquisition of a specific telecommunications business or a value-added telecommunications business, merger of juristic persons which are specific telecommunications business operators or value-added telecommunications business operators, or succession of a value-added telecommunications business under Article 25, then the person acquiring the business, the existing juristic person after merger, the juristic person founded by merger or the inheritor shall succeed the status of the former specific telecommunications business operator or value-added telecommunications business operator. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5385, Aug. 28, 1997> Article 27 (Suspension, Closedown of Business, etc.) (1) Where a specific telecommunications business operator or a value-added telecommunications business operator intends to suspend or close down the whole or part of his business, he shall notify the users of the services of the contents no later than thirty days prior to the date of the planned suspension or closedown and report to the Minister of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> (2) Where a juristic person which is a specific telecommunications business operator or a value-added telecommunications business operator is dissolved for reasons other than a merger, the liquidators (referred to the trustee in bankruptcy, when it is dissolved by bankruptcy) shall report without delay this to the Minister of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> Article 28 (Cancellation of Registration and Order of Closedown of Business) (1) Where a specific telecommunications business operator falls under any of the following subparagraphs, the Minister of Information and Communication may cancel his registration, or may suspend his business by specifying the period of not more than one year: Provided, That where such a provider falls under subparagraph 1or 4, the Minister of Information and Communication shall cancel his registration: <Newly Inserted by Act No. 5385, Aug. 28, 1997> 1.Where he makes a registration by falsehood or other illegal means; 2.Where he fails to commence the business within one year from the date on which a registration was made pursuant to Article 19 (1) or cease to operate the business for not less than one year on end;

14 3.Where he fails to meet the conditions referred to Article 19 (2); 4.Where any officer falls under any of subparagraphs of Article 24 (2): Provided, That this shall not apply in case where that officer is replaced within three months; 5.Where he fails to comply with an order of correction referred to in Article 65 (1) without any justifiable reason; 6.Where he fails to comply with an order referred to in Article 7 (2) which applies mutatis mutandis under Article 6 (2) of the Addenda; and 7.Where he violates this Act, the Framework Act on Telecommunications, the Radio Waves Act, the Act on Dissemination of Expansion and Promotion of Utilization of Information System or the Framework Act on Informatization Promotion, or he violates an order issued under any of such Acts. (2) Where a value-added telecommunications business operator falls under any of the following subparagraphs, the Minister of Information and Communication may issue an order for the closedown or suspension of the business to him, by specifying the period of not more than one year: Provided, That where such a provider falls under subparagraph 1 or 3, the Minister of Information and Communication shall issue an order for the closedown of the business to him : <Amended by Act No. 4903, Jan 5, 1995; Act No. 5220, Dec. 30, 1996> 1.In case he makes report in a deceitful or other illegal manner; 2.In case he does not commence the business not later than one year from the reporting date under Article 21 or in case he ceases to operate the business for not less than one year; 3.In case he falls under any subparagraph of Article 24-2: Provided, That this shall not apply to a juristic person falling under subparagraph 4 of Article 24 if the officer in question of that juristic person is replaced within three months; 4.In case he complies with a correction order under Article 65 (1) without due reason; and 5.In case of violations against this Act, the Framework Act on Telecommunications, the Radio Waves Act, the Act on Dissemination of Expansion and Promotion of Utilization of Information System, Framework Act on Informatization Promotion or an order issued under any of such Acts. (3) The criteria and procedures for measures taken under paragraph (1) or (2) above,

15 and other necessary matters shall be determined by the Ordinance of the Ministry of Information and Communication. <Amended by Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> CHAPTER 2: TELECOMMUNICATIONS SERVICE Article 29 (Report of Standardized Contract for Users, etc.) (1) The facilities-based telecommunications business operator shall determine telecommunications fees and other terms for use according to each telecommunications service to be provided (hereinafter referred to as the "standardized contract for users") and report them (inclusive of the report of change) to the Minister of Information and Communication: Provided, That in case of the facilities-based telecommunications service the scope of business and market share of which meets the standard set out by the Ordinance of the Ministry of Information and Communication, the authorization of the Minister of Information and Communication (inclusive of the authorization of changes) shall be obtained. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> (2) Deleted. <by Act No. 5385, Aug. 28, 1997> (3) The Minister of Information and Communication shall authorize the standardized contract for users referred to in the proviso of paragraph (1), if such contract falls under the following subparagraphs: <Amended by Act No. 5220, Dec. 30, 1996> 1.That the telecommunications service fee shall be proper, fair and reasonable; 2.That the computing methods for telecommunications service fee shall be proper and clear; 3.That responsibility matters of the facilities-based telecommunications business operator and the users, along with the cost-sharing methods regarding installation construction of the telecommunications facilities and other construction shall be proper and clear; 4.That the use of the telecommunications line facilities by other telecommunications business operators or users shall not be unduly restricted; 5.That undue discriminatory treatment shall not be made to specific persons; and 6.That the matters on securing important telecommunications under Article 55 shall be adequately considered.

16 (4) The Minister of Information and Communication may make temporalauthorization for a standardized contract for users when the need to provide telecommunications service on a trial basis is acknowledged in spite of the provisions of paragraph (1). <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> (5) If a specific telecommunications business operator or a value-added telecommunications business operator makes use of the facilities-based telecommunications business operator's telecommunications line facilities, then the standardized contract for users, pursuant to the provisions of paragraph (1) shall apply with respect to the use of telecommunications line facilities. <Amended by Act No. 5385, Aug. 28, 1997> Article 30 (Change of Standardized Contract for Users, etc.) (1) The Minister of Information and Communication may order a change of the standardized contract for users to the telecommunications business operator within considerable time specified when such contract of the telecommunications business operator becomes unduly reasonable due to changes of social or economic situations and are acknowledged as detrimental to the enhancement of public interests. <Amended by Act No. 5220, Dec. 30, 1996> (2) The telecommunications business operator shall change the standardized contract for users concerned within the specified period, in case of such change orders of the above paragraph (1). Article 31 (Public Notice of Standardized Contract for Users, etc.) (1) The facilities-based telecommunications business operator shall make public notices of the authorized or the reported standardized contract for users under Article 29 (1). This shall apply to the case in which a specific telecommunications business operator has laid down the standardized contracts for users on telecommunications services or the value-added telecommunications business operator, regarding the value-added telecommunications service, has determined the standardized contract for users. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> (2) The telecommunications business operator shall furnish users with the standardized contract for users under the above paragraph (1) for perusal and put up notices of major contents from the standardized contract for users at business offices of telecommunications business operator and other easily accessible places of users. Article 32 (Reduction or Exemption of Fee) The facilities-based telecommunications business operator may reduce or exempt

17 telecommunications service fee, as determined by the Presidential Decree. Article 32-2 (Restriction on Use by Others) No person shall mediate communications of others or provide communications for others by using the telecommunications services supplied by the telecommunications business operator: Provided, That this shall not apply to the case which is prescribed by the Presidential Decree. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 32-3 (Applicable Provisions concerning Person who Installed Private Telecommunications Facilities) The provisions of Articles 29 through 32, 33, and 36-3 through 37-2 shall apply mutatis mutandis to the person who installed the private telecommunications facilities with approval from the Minister of Information and Communication pursuant to the provisions of Article 21 (1) 3 of the Framework Act on Telecommunications. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 32-4 (Use of Transmission Line Facilities, etc.) (1) The person possesses the transmission line facilities under the Composite Cable Broadcasting Act or the cable broadcasting facilities under the Management of Cable Broadcasting Act which meet the standards set out by the Ordinance of the Ministry of Information and Communication may provide the facilities to the facilities-based telecommunication business operator pursuant to the provisions of the Presidential Decree. (2) When the person who possesses the transmission line facilities under the Composite Cable Broadcasting Act (the composite cable broadcasting company under the Composite Cable Broadcasting Act shall be deemed as the person possessing the transmission line facilities) or the cable broadcasting facilities under the Management of Cable Broadcasting Act wishes to provide a value-added telecommunication services using the transmission line facilities or cable broadcasting facilities, a report shall be made to the Minister of Information and Communication pursuant to the provisions of Article 21. (3) The provisions of Articles 33-5 through 37-2 shall be applicable mutatis mutandis to the transmission line facilities or cable broadcasting facilities pursuant to the provisions of paragraph (1). (4) The provisions of Article 25 (2) through (6) of the Framework Act on

18 Telecommunications shall be applicable mutatis mutandis to the supply of service pursuant to the provisions of paragraph (2). [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 33 (Protection of Users) (1) The telecommunication business operator shall devise necessary measures such as establishment and operation of civil petitions service organizations, and others for the protection of its users. (2) The telecommunication business operator shall make prompt actions about the reasonable opinions or dissatisfactions raised by users on telecommunication service. In this case, if it is difficult to take prompt actions, then the reason thereof and the action dates shall be notified to users. (3) The indemnity for the damage that gave reasons for such opinions or dissatisfactions of the above paragraph (2) and for delayed action thereof shall be made pursuant to Article <Amended by Act No. 5220, Dec. 30, 1996> Article 33-2 (Damages) The telecommunication business operator shall make appropriate damages if injuries are suffered by the users in the course of providing telecommunication services: Provided, That if such injuries are the result of force majeure, or of intention or negligence on the part of the users, the damages shall be reduced or exempted. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 33-3 (Request for Ruling and Procedures for Damages and Compensation for Actual Expenses) (1) In case of damages, pursuant to the provision of Article 33-2 or compensation for actual expenses pursuant to the provision of Article 46, consultations with the recipient of damages or compensation for actual expenses shall be made. (2) If no consultation concerning damages or compensation for actual expenses pursuant to the provision of paragraph (1) has been or could have been made, then the parties may request the communications commission (hereinafter referred to as the "communications commission) for ruling pursuant to Article 37 of the Framework Act on Telecommunications. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996]

19 CHAPTER 3: PROMOTION OF COMPETITION AMONG THE TELECOMMUNI-CATION SERVICE PROVIDER Article 33-4 (Promotion of Competition) The Minister of Information and Communication shall try to construct an efficient competition system and to promote fair competitive environment in telecommunication service. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 33-5 (Provision of Telecommunication Facilities) (1) The facilities-based telecommunication business operator by agreement may provide the telecommunication facilities upon the request made by other facilities-based telecommunication service supply concerning the provision of telecommunication facilities. (2) The Minister of Information and Communication shall determine and publicly notify the scope of telecommunication facilities, the conditions, procedures and methods for the supply of facilities, and standards for calculation of compensation pursuant to paragraph (1). (3) The facilities-based telecommunication business operators who have been provided with the telecommunication facilities may install items which could enhance the efficiency of the facilities within the limit necessary for the provision of the licensed telecommunication service. (4) The Minister of Information and Communication shall undergo the review of the communications commission when determining the standards pursuant to the provision of paragraph (2). [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 34 (Interconnection of Telecommunication Facilities, etc.) (1) The telecommunication business operator may allow interconnection by concluding an agreement upon a request by other providers concerning the interconnection of telecommunication facilities. (2) The Minister of Information and Communication shall determine and publicly notify the scope, conditions, procedures and methods for the interconnection of telecommunication facilities, and standards for calculation of compensation pursuant

20 to paragraph (1). (3) Notwithstanding the provisions of paragraphs (1) and (2), the facilities-based telecommunication business operators who fall under any of the following subparagraphs shall allow the interconnection by concluding an agreement upon a request pursuant to the provisions of paragraph (1): 1.The facilities-based telecommunication business operators who possess essential facilities for the supply of telecommunication services by other telecommunication business operators; and 2.The facilities-based telecommunication business operators who satisfy the standards concerning business scale and market share as determined by the Ordinance of the Ministry of Information and Communication. (4) The Minister of Information and Communication shall undergo a review of the communications commission when determining the standards pursuant to paragraph (2). [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 34-2 (Values of Interconnection) (1) The compensation for the use of interconnection shall be calculated fairly and properly, and deducted from each other's accounts. The details concerning standards for such calculation, procedure and methods shall be governed by the provisions of Article 34 (2). (2) The facilities-based telecommunication business operators may deduct the compensation for the use of interconnection service from each other's accounts if they unfairly suffer without fault of their own from the method of interconnection, quality of connection and provision of information necessary for interconnection according to the standards established pursuant to the provisions of Article 34 (2). [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 34-3 (Joint Use of Telecommunications Facilities) (1) The facilities-based telecommunications business operators may allow the access to or joint use of the telecommunications facilities by an agreement upon a request by other telecommunications business operators for the access to or joint use of such facilities as pipes, cables, poles, and stations for the establishment or operation of facilities necessary for interconnection.

21 (2) The Minister of Information and Communication shall determine the scope, conditions, procedures and methods of access to or joint use of telecommunications facilities and standards for calculation of compensation pursuant to the provisions of paragraph (1) and make notification. (3) Notwithstanding the provisions of paragraph (1), the facilities-based telecommunications business operators who fall under any of the following subparagraphs shall allow the access to or joint use of the telecommunications facilities in accordance with the provisions of paragraph (1) by concluding an agreement upon a request pursuant to the provisions of paragraph (1): 1.The facilities-based telecommunications business operators who possess essential facilities for the provision of telecommunications services by other telecommunications business operators; and 2.The facilities-based telecommunications business operators who satisfy the standards concerning business scale and market share as determined by the Ordinance of the Ministry of Information and Communication. (4) The Minister of Information and Communication shall undergo the review of the telecommunications commission when determining the standards pursuant to the provisions of paragraph (2). [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 34-4 (Provision of Information) (1) The facilities-based telecommunications business operators may provide the requested information by concluding an agreement upon a request from other telecommunications business operators for the provision of information concerning the supply of facilities, interconnection, joint use, technical information necessary for imposition and collection of fees and telephone communication number information, and personal information of users. <Amended by Act No. 5385, Aug. 28, 1997> (2) The Minister of Information and Communication shall determine the scope, conditions, procedures and methods of provision of information, and standards for calculation of compensation and make notification. (3) Notwithstanding the provisions of paragraph (1), the facilities-based telecommunications business operators who fall under any of the following subparagraphs shall provide the requested information by concluding an agreement upon a request pursuant to the provisions of paragraph (1): 1.The facilities-based telecommunications business operators who possess essential

22 facilities for the provision of telecommunications services by other telecommunications business operators; and 2.The facilities-based telecommunications business operators who satisfy the standards concerning business scale and market share as determined by the Ordinance of the Ministry of Information and Communication. (4) The facilities-based telecommunications business operators, pursuant to the provision of paragraph (3), shall determine the standards for use and supply of facilities, the promotion of a fair competitive environment, and technical standards necessary for interconnection use through a monitor and other telecommunications facilities by other telecommunications business operators or users and make notification, with the permission of the Minister of Information and Communication. (5) The Minister of Information and Communication shall undergo a review of the telecommunications commission when determining the standards pursuant to the provisions of paragraph (2) or obtaining permission pursuant to the provisions of paragraph (4). [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 34-5 (Prohibition of Information Disclosure) (1) The telecommunications business operators shall not disclose any information obtained through provision of service or telecommunications facilities, or interconnection concerning individual users: Provided, That if the users agree to the disclosure of information or proper procedures pursuant to the provisions of appropriate Acts have been observed, then the above shall not apply. (2) The telecommunications business operators shall use the information obtained pursuant to the provisions of Article 34-4 within the context of the purpose thereof and may not misuse it or provide it to third parties. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 34-6 (Report, etc. of Agreement for Interconnection, etc.) (1) The facilities-based telecommunications business operators shall make an agreement pursuant to the provision of Article 33-5 (1), 34 (1), 34-3 (1) or 34-4 (1) and report it to the Minister of Information and Communication within ninety days if they have been requested by other tel ecommunications providers for the supply of facilities, interconnection, joint use or provision of information and that the request has no specific reason to be rejected. The same applies in the case of a change or abolition of the agreement.

23 (2) Notwithstanding the provision of paragraph (1), in case of the agreement in which the facilities-based telecommunications business operators pursuant to the provisions of Articles 34 (3), 34-3 (3) and 34-4 (3) are parties concerned, the authorization of the Minister of Information and Communication shall be obtained. (3) The agreement pursuant to the provisions of paragraphs (1) and (2) shall meet the standards for which the Minister of Information and Communication makes a public notification in accordance with the provision of Article 33-5 (2), 34 (2), 34-3 (2), or 34-4 (2). (4) The Minister of Information and Communication may grant authorization or determine the periods for complement after a review of the communications commission in case of the request for authorization pursuant to the provision of paragraph (2). (5) The agreement pursuant to the provisions of Articles 34-3 (1) and 34-4 (1) may be included in the agreement pursuant to the provisions of Article 34 (1). [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 35 (Application for Ruling, etc.) (1) The telecommunication business operators may apply to the telecommunication commission for a ruling pursuant to the provision of Article 40-2 of the Framework Act on Telecommunications if the agreements between the telecommunication business operators concerning the supply of facilities, interconnection, joint use or supply of information may not or can not be concluded within the specified period pursuant to the provision of Article 34-6 (1). (2) The telecommunication business operators may apply to the telecommunication commission for a ruling for the performance of agreement or damages if damages occur due to the non-performance of the agreement concerning the supply of facilities, interconnection, joint use or supply of information by other telecommunication business operators. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 36 (Telecommunication Number, etc.) (1) The Minister of Information and Communication shall establish and enforce the management plan of telecommunication number for efficient supply of telecommunication service, convenience of users, and promotion of fair competition among the telecommunication business operators.

24 (2) When the plan of the above paragraph (1) is established, then the Minister of Information and Communication shall make public notices of the plan. This shall also apply to changes of the established plan. (3) The telecommunication business operator shall observe the matters noticed under the above paragraph (2). (4) When the Minister intends to make or modify the management plan of telecommunication number according to the above paragraph (1), in advance he shall receive the deliberation of the Korea Communications Commission. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 36-2 (Accounting Adjustment) (1) The facilities-based telecommunication business operators shall arrange the accounting adjustment, prepare the operating report for the previous year by the end of March of every year and submit it to the Minister of Information and Communication, and have related books and documents available. (2) The Minister of Information and Communication shall consult in the deliberation of the Korea Communications Commission and advance with the Minister of Finance and Economy when determining the accounting matters pursuant to the provision of paragraph (1). (3) The Minister of Information and Communication may order the facilities-based telecommunication business operators to submit related documents or carry out an investigation for confirmation if necessary for the validation of the operating report submitted by the facilities-based telecommunication business operators pursuant to paragraph (1). (4) The Minister of Information and Communication may request the telecommunications commission to review the related documents if necessary to confirm whether the operating report of the telecommunication business operators falls under the provisions of subparagraph 3 of Article [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 36-3 (Prohibited Acts) (1) The telecommunication business operators may not carry out any of the following acts (hereinafter referred to as "prohibited acts") which hamper fair competition, or have these acts executed by other telecommunication business operators or third

25 parties: 1.Acts of unfair discrimination concerning the supply of telecommunication facilities, interconnection, joint use, or provision of information, or acts of unfairly rejecting the conclusion of agreement, or acts of non-performance of the existing agreement without due cause; 2.Acts of unfairly using the information of other telecommunication business operators obtained through the supply of facilities, interconnection, joint use, and supply of information for his own business; 3.Acts of calculating service fees or the compensation for the supply of facilities, interconnection, joint use, or supply of information by unfairly itemizing the expense or revenue; or 4.Acts of providing the service in a manner different from the standard form of contract for users publicly notified pursuant to the provision of Article 31 or acts of providing service in a manner which severely reduces the profits of users. (2) The Minister of Information and Communication may determine and publicly notify the types and standards of acts pursuant to the provision of paragraph (1). (3) The Minister of Information and Communication shall undergo the review of the telecommunication commission and consult with the Fair Trade Commission. Article 36-4 (Investigation of Facts) (1) The Minister of Information and Communication may have public officials affiliated with the telecommunication commission conduct an investigation necessary for the confirmation of the report or knowledge, when it is recognized that there has been an act due to a report or knowledge pursuant to the provision of Article (2) The Minister of Information and Communication may order the telecommunication business operators to submit necessary data or items and have the public officials affiliated with the telecommunication commission visit their offices or workplace of a person committed by telecommunications service provider to take the business and investigate books, documents and other data as prescribed by the Presidential Decree when doing so is necessary for the investigation pursuant to the provision of paragraph (1). (3) The person who investigates the offices or workplace of the telecommunication business operators or workplace of a person committed by telecommunications service provider to take the business pursuant to the provision of paragraph (2) shall

26 carry a certificate providing the authorization and present it to the person related. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 37 (Measures on Prohibited Acts) (1) The Minister of Information and Communication may order the following measures upon the telecommunication business operators after the review of the telecommunication commission when it is recognized that the act pursuant to the provision of Article 36-3 has taken place: 1.Separation of the system providing telecommunication service; 2.Change of internal accounting regulations concerning telecommunication service; 3.Disclosure of information concerning telecommunication service; 4.Performance or change of agreement between the telecommunication business operators; 5.Change of the standard form of contract for users and articles of the telecommunication business operators; 6.Stopping of prohibited acts; 7.Public announcement of correction orders due to performance of prohibited acts; and 8.Other matters prescribed by the Presidential Decree. (2) The telecommunication business operators shall carry out the orders of the Minister of Information and Communication pursuant to the provision of paragraph (1) within the period specified by the Minister: Provided, That the Minister may extend the period only once if it is recognized that the telecommunication business operators are not able to carry out the orders within the specified period due to unavoidable causes such as natural disasters, or other justifiable reasons. (3) The Minister of Information and Communication shall notify the correction measures to the parties concerned, give them an opportunity to make a statement within a specified period before ordering the measures pursuant to the provision of paragraph (1), and hear the opinions of the interested parties if it is deemed necessary: Provided, That if the parties concerned fail to respond without due reasons, this shall not apply.

27 [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Article 37-2 (Levy of a penalty for a forbidden behavior) (1)The Minister could levy a penalty on a telecommunication service provider equal to 3% of revenue decided by the Presidential Decree for the behavior according to the Article 36-(3) through the deliberation of the Korea Communications Commission. If there is no revenue or impossible to estimate the revenue, the Minister could levy a penalty under 1 billion won according to the Presidential Decree. (2) The sort of forbidden behaviors according to the above paragraph (1), each upper amount limits of penalty, and others as necessary will be made by the Presidential Decree. (3) The Minister shall levy a penalty according to Article (1) by the examples of the disposition of national taxes in arrears, when a person who is obliged to pay failed to pay until due date. Article 37-3 (Levy of a penalty for a forbidden behavior) If a penalty according to the Article 37 or the Article 37-(2) is levied on telecommunication service provider for the forbidden behavior according to the Article 36-(3)-1, it is inhibited to levy a penalty or a correction order duplicately for the same behavior by the Monopoly Regulation and Fair Trade Act. Article 38 (Damages) In case correction measures were taken, pursuant to the provision of Article 37 (1), the person who suffers damages by the prohibited act may claim damages against the telecommunication business operator who conducted the prohibited act and the telecommunication business operator may not avoid liability unless he can prove that there was no existence of any malicious intention or negligence. [This Article Newly Inserted by Act No. 5220, Dec. 30, 1996] Articles 38 and 38-2 Deleted. <by Act No. 5220, Dec. 30, 1996> CHAPTER 4: INSTALLATION AND RESERVATION OF TELECOMMUNICATION FACILITIES Article 39 (Use of Land, etc.)

28 (1) The facilities-based telecommunication business operator may make use of land owned by others or buildings, construction attached thereto and surface, bottom of the water (hereinafter referred to as the "land, etc."), when necessary for the installation of line tracks, aerial lines and facilities attached thereto available for telecommunication service (hereinafter referred to as the "line tracks, etc."). In this case, the facilities-based telecommunication business operator shall discuss with owners or possessors of the land, etc., in advance. (2) When agreements on the discussions of the above paragraph (1) are not or can not be reached, then the facilities-based telecommunication business operator may use the land, etc. owned by others, pursuant to the Land Expropriation Act. (3) The facilities-based telecommunication business operator shall report to competent authorities, in advance, when installing or building line tracks, etc., at national or public land, public constructions or surface of water for public use: Provided, That the permission from the relevant authorities shall be obtained for use of the roads under the Road Act, the rivers under the River Act, or the national or public land, public constructions or public water surface as prescribed by the Presidential Decree. Article 40 (Temporary Use of Land, etc.) (1) The facilities-based telecommunication business operator may temporarily use private, national or public telecommunication facilities, the land, etc., within limits of not substantially impeding current use, when necessary for the measurement regarding line tracks, etc., the installation or reservation constructions of the telecommunication facilities. (2) The facilities-based telecommunication business operator shall notify possessors, in advance, of the purposes of and the period of time of use, when intending to use temporarily private, national or public property under the above paragraph (1): Provided, That in case of difficult situations arising for the complication of prior notification then prompt notification at the time of or after use shall be made, and in case that the notification can not be made due to indistinct address and location of possessors, then public notices thereof shall be put. (3) The temporary period of use for the land, etc., of the above paragraph (2) shall not exceed six months. (4) The person who temporarily use private, national or public telecommunication facilities or the land, etc. of the above paragraph (1) shall carry and present the certificate proving the authority to the person related. Article 41 (Entry to Land, etc.)

29 (1) The facilities-based telecommunication business operator may enter the land, etc., owned by others, when necessary for measurement, examination, etc., for installation, and reservation of telecommunication facilities: Provided, That in case of residential buildings for such entry, the consents from residents shall be obtained. (2) The supplies of Article 40 (2) and (4) shall be applied mutatis mutandis to the entry of private, national or public land, etc., by those engaged in measurement or examination, etc., of the above paragraph (1). Article 42 (Elimination Request for Obstacles, etc.) (1) The facilities-based telecommunication business operator may request owners or possessors of gas pipes, water pipes, drain pipes, electric lamp lines, electricity lines or private telecommunication facilities which may produce or have the danger of producing impediments to the installation of line tracks, etc., or telecommunication facilities itself (hereinafter referred to as the "obstacles, etc.") for removal, reconstruction, repair and other measures against the obstacles, etc.. (2) The facilities-based telecommunication business operator may request owners or possessors for the elimination of plants, when the plants may produce or have the possibility of producing impediments to installation, maintenance of line tracks, etc., or telecommunication itself. (3) The facilities-based telecommunication business operator may cut down or transplant the plants with the permission from the Minister of Information and Communication, when the owners or possessors of the plants do not comply with the requests under above paragraph(2), or there exist other unavoidable reasons. In this case, this shall be notified promptly to owners or possessors of the plants related. <Amended by Act No. 5220, Dec. 30, 1996> (4) The owners or possessors of the obstacles, etc., which may produce or have the possibility of producing impediments to telecommunication facilities of the facilities-based telecommunication business operator shall have discussions in advance with the facilities-based telecommunication business operator, when the creation, enlargement, improvement, abolition or alteration of the obstacles etc., is needed. Article 43 (Utilization of Transportation Devices) (1) The facilities-based telecommunication business operator may utilize private, national or public vessels, airplanes and other transportation devices, when necessary for establishment of radio-wave stations provided for telecommunication service, or may use special supply or supply of facilities needed for establishment through

30 discussions in advance with owners or possessors. (2) The provisions of Articles 40 (2) and 44 shall be applied mutatis mutandis to the above paragraph (1). Article 44 (Duty of Restoration to Original State) The facilities-based telecommunication business operator shall restore the land, etc., related to its original state, when the use of the land, etc., under Articles 39 and 40 is terminated or the need for providing the land, etc., for telecommunication service is gone, and make just compensations for damage suffered by the owners or possessors in case of not restoring it to the original state. Article 45 (Compensation for Loss) The facilities-based telecommunication business operator shall make just compensations to the suffered person, in case of bringing loss to others in case of Article 40 (1), 41 (1) or 42. Article 46 (Compensation for Actual Expenses) When the special supply or facilities necessary for establishment of radio-wave stations provided for telecommunication service is offered from owners or possessors of vessels, airplanes and other transportation devices, under Article 43 (1), then the facilities-based telecommunication business operator shall make compensations for the actual expenses thereof. Article 47 (Compensation Procedures for Loss of Land, etc.) (1) When the compensation for loss under Article 44 or 45 is made due to the use of and entry to the land, etc., the elimination of the obstacles, etc., or the impossibility of restoration to the original state under Article 40 (1), 41 (1), 42 or 44, then the discussions with the suffered party shall be made. (2) When the discussions of the above paragraph (1) are not or can not be made, then the application for adjudications shall be filed at the competent Land Expropriation Commission under the Land Expropriation Act. (3) The provisions of the Act on Special Cases concerning the Acquisition of Lands for Public Use and the Compensation for their Loss, except the one prescribed otherwise by this Act, shall be applied mutatis mutandis to criteria, methods and procedures regarding compensation for loss, etc., of the land, etc. of the above paragraph (1), and the supplies of the Land Expropriation Act shall be applied mutatis mutandis to the application for adjudications of the above paragraph (2).

31 Article 48 (Protection of Line Tracks at Bottom of Water) (1) The facilities-based telecommunication business operator may apply for designation of a protection zone of the line tracks at the bottom of the water (hereinafter referred to as the "protection zone") to the Minister of Information and Communication, when necessary for protecting the line tracks built at the bottom of the water (hereinafter referred to as the "line tracks at the bottom of the water"). <Amended by Act No. 5220, Dec. 30, 1996> (2) In case of designation of the protection zone, based upon the application under paragraph (1), the Minister of Information and Communication shall make public notices of such, and the facilities-based telecommunication business operator applying for such protection zone shall make marks of the protection zone and public notices of location of the protection zone and buoys. <Amended by Act No. 5220, Dec. 30, 1996> (3) In order to designate the protection zone pursuant to the provision of the above paragraph (2), the Minister of Information and Communication shall consult in advance with the Minister of Maritime Affairs and Fisheries. <Newly Inserted by Act No. 5220, Dec. 30, 1996> Article 49 (Ban on Specific Activities within Protection Zone) Within the protection zone under Article 48 (1), the vessel moorage, anchoring, collection of minerals or the collection and capturing of sea products at the bottom of water and other activities against protection of the line tracks at the bottom of the water shall not be done: Provided, That this shall not apply to the activities approved by the Minister of Information and Communication. [This Article Wholly Amended by Act No. 5220, Dec. 30, 1996] Article 50 (Protection of Telecommunication Facilities) (1) No person shall destruct telecommunication facilities and obstruct the flow of telecommunication by impeding the function of telecommunication facilities through making objects contacted to them thereto or any other devices. (2) No person shall stain telecommunication facilities or damage the measurement marks of the telecommunication facilities through devices like throwing objects to the telecommunication facilities or fastening animal, vessel or a log raft thereto to the facilities. Article 51 (Moving of Facilities, etc.)

32 (1) When telecommunication facilities of the facilities-based telecommunication business operator obstruct the use of the land, etc., where such facilities are located or the land adjacent to such land due to change in purpose of use or in ways of using such land etc., then the owners or possessors of the land, etc., may request the facilities-based telecommunication business operator to move the telecommunication facilities and any other measures necessary for elimination of the obstacles. (2) The facilities-based telecommunication business operator shall take necessary measures in case of the request of the above paragraph (1), except when such measures are hard to be taken for business performance or technical reasons. (3) The expenses necessary for such measures under the above paragraph (2) shall be borne by the person who made the request: Provided, That they may be reduced or exempted pursuant to the Presidential Decree. Article 52 (Cooperation of Other Organizations, etc.) The facilities-based telecommunication business operator may ask related public agencies for cooperation, when necessary for operation of vehicles, vessels, airplanes and other carriers for installation and reservation of telecommunication facilities. In this case, the public agency whose cooperation is sought for shall accept the request unless there exist justifiable reasons. CHAPTER 5: SUPPLEMENTARY PROVISIONS Article 53 (Regulation of Subversive Communications) (1) The person in use of telecommunication shall not make communications with contents of harming the public safety and order or public morals. (2) The communication subjects, etc., considered harmful to the public safety and order or public morals pursuant to paragraph (1) shall be determined by the Presidential Decree. (3) The Minister of Information and Communication may issue an order to deny, suspend or restrict against the communications of the above paragraph (2) to the telecommunication business operator. <Amended by Act No. 5220, Dec. 30, 1996> Article 53-2 (Telecommunication Ethics Commission) (1) For the purpose of suppressing subversive communications under Article 53 and

33 securing healthy information culture, the Telecommunication Ethics Commission (hereinafter referred to as the "Commission") shall be established. (2) The Commission shall be composed of commission members with no less than eleven, but no more than fifteen in its number, including the chairman. (3) The commission members shall be commissioned by the Minister of Information and Communication among those engaged in the academic world, legal circles, user organization and business area related to telecommunication service. <Amended by Act No. 5220, Dec. 30, 1996> (4) The Commission shall execute the following tasks, for the purpose of eradicating subversive communications and promoting active and healthy informations: <Amended by Act No. 5220, Dec. 30, 1996> 1.Presentation of general principles on telecommunication ethics; 2.Deliberation of and request for correction of information prescribed by the Presidential Decree, among those circulated for the purpose of disclosure to the public through telecommunication line; 3.Recommendations to make appropriate measures for healthy information circulated through telecommunication line; 4.Operation of reporting centers against unhealthy telecommunication activities; 5.Activities necessary for promotion of a healthy information environment; and 6.Other matters, delegated by the Minister of Information and Communication, related to regulation of subversive communications circulated through telecommunication. (5) The matters necessary for organization and operation of the Commission shall be determined by the Presidential Decree. (6) The Government may give financial aid to the expenses necessary for operation of the Commission within the limit of its budget. [This Article Newly Inserted by Act No. 4903, Jan. 5, 1995] Article 54 (Protection of Communication Secrecy) (1) No person shall encroach upon or divulge communication secrecy held by telecommunication business operator.

34 (2) The one engaged or has been engaged in telecommunication service shall not divulge others' communication secrecies obtained while in office. (3) When related authorities ask for perusal or submission of documents regarding telecommunication service for investigation needs in writing, then telecommunication business operator or the one entrusted with partial treatment of telecommunication service under Article 12 may accede to. Article 55 (Restriction and Suspension of Services) The Minister of Information and Communication may order restriction or suspension, the whole or part, of telecommunication service to telecommunication business operators pursuant to the provisions of the Presidential Decree, when situations of wartime, disasters, natural calamities, national emergencies corresponding to the break out or are likely to break out, or other unavoidable causes exist and so necessary for securing important communications. <Amended by Act No. 5220, Dec. 30, 1996> Article 56 Deleted. <by Act No. 5220, Dec. 30, 1996> Article 57 (Duty of User) (1) The person using the telecommunication facilities installed by the facilities-based telecommunication business operator and located within the business area of users shall use them with duty of care. (2) The users shall not move, remove, change or dissemble the telecommunication facilities of the above paragraph (1), or connect them with other line equipments, etc., without the prior approval from the facilities-based telecommunication business operator: Provided, That this shall not apply to the case necessary for protection of such facilities, situated in natural calamities and other emergencies. (3) When the users lose or damage the telecommunication facilities of the facilities-based telecommunication business operator, then the expenses needed for replacement, repair and construction thereof shall be borne by the users. (4) When the users connect other line equipments to the telecommunication facilities in violation of the provisions of the text of the above paragraph (2), then the facilities-based telecommunication business operator may remove and keep the line equipments under custody for preservation of evidence. (5) When there exist needs to examine the telecommunication facilities of the above paragraphs (1) and (2) for ascertaining conditions of the use of facilities concerned, then the facilities-based telecommunication business operator may ask the user for

35 submitting materials related to such facilities, or make related officials inspect the facilities, etc.. (6) The provisions of Article 40 (4) shall be applied mutatis mutandis to the above paragraph (5). Article 58 (Repair or Restoration of Facilities) The telecommunication business operator shall repair or restore telecommunication facilities to its original state without delay, when the facilities are not properly functioned or the facilities are destroyed: Provided, That this shall not apply to equipments leased from the telecommunication business operator, the private telecommunication facilities and the facilities installed by users. Article 59 (Approval of International Telecommunication Service, etc.) (1) When there exist special provisions at the treaties or agreements on international telecommunication service matters signed by the Government, then those provisions shall be applied to. (2) The telecommunication business operator shall obtain approval from or report to the Minister of Information and Communication under the conditions as prescribed by the Presidential Decree, in case of concluding agreements or contracts with foreign government or foreigners on international telecommunication service matters prescribed by the Presidential Decree. This shall also be applied to changing or repealing of such. <Amended by Act No. 5220, Dec. 30, 1996> Article 59-2 (Transboundary Provision of Facilities-Based Telecommunications Services) (1) Any person who intends to provide facilities-based telecommunications services from abroad into the territory of Korea without any business place in Korea (hereinafter referred to as the "transboundary provision of facilities-based telecommunications services") shall conclude a contract on the transboundary provision of facilities-based telecommunications services with a domestic facilities-based telecommunications business operator or specific telecommunications business operator who provides the same facilities-based telecommunications services. (2) The provisions of Articles 29 through 31, 33 through 33-3, 36-3, 36-4, 37, 37-2, 53 through 55, 62 and 65 shall apply mutatis mutandis to the provision of services as prescribed in a contract by a facilities-based telecommunications business operator or specific telecommunications business operator who concludes the contract pursuant to paragraph (1).

36 (3) Where a person who intends to provide facilities-based telecommunications services cross the border, or a facilities-based telecommunications business operator or specific telecommunications business operator who has concluded with him violates the relevant provisions which applies mutatis mutandis pursuant to paragraph (2), the Minister of Information and Communication may cancel approval referred to in Article 59 (2) or may issue an order to suspend transboundary provision of the whole or part of facilities-based telecommunications services as prescribed in the contract, by specifying the period of no more than one year (4) The criteria and procedures for measures referred to in paragraph (3) and other necessary matters shall be determined by the Ordinance of the Ministry of Information and Communication. [This Article Newly Inserted by Act No. 5385, Aug. 28, 1997] Article 60 Deleted. <by Act No. 5220, Dec. 30, 1996> Article 61 (Report on Accidents) The telecommunication business operator shall report the situations, reasons or causes thereof without delay to the Minister of Information and Communication, in case of major accidents prescribed by the Ordinance of the Ministry of the Information and Communication about telecommunication service. <Amended by Act No. 5220, Dec. 30, 1996> Article 62 (Report on Statistics, etc.) (1) The telecommunications business operator shall report such statistics on the telecommunications service pursuant to the provisions of the Ordinance of the Ministry of Information and Communication as the facilities status for each service, subscription record, users status, and phone call records for the imposition and collection of fees to the Minister of Information and Communication, pursuant to the Ordinance of the Ministry of Information and Communication, and have the related data available. <Amended by Act No. 5220, Dec. 30, 1996> (2) The facilities-based telecommunications business operator and stockholders thereof or the specific telecommunications business operator and stockholders thereof shall submit related materials necessary for confirmation of the truth of Article 6 or 24, pursuant to the provisions of the Ordinance of the Ministry of Information and Communication, in case of requests from the Minister of Information and Communication. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997>

37 (3) The Minister of Information and Communication may ask administrative agencies and other related agencies for examination of the materials submitted or for submission of related materials in order to ascertain the truth under the above paragraph (2), or the genuineness of the materials submitted. In this case, the agencies asked shall accede unless there exist justifiable reasons. <Amended by Act No. 5220, Dec. 30, 1996> Article 63 (Hearing) Where the Minister of Information and Communication intends to take a disposition falling under any of the following subparagraphs, he shall hold a hearing: 1.Cancellation of license for a facilities-based telecommunications business operator referred to in Article 15 (1); 2.Cancellation of registration of a specific telecommunications business or closedown of a value-added telecommunications business referred to in Article 28 (1) and (2); and 3.Cancellation of approval referred to in Article 50-2 (3). [This Article Wholly Amended by Act No. 5385, Aug. 28, 1997] Article 64 (Imposition of Penalty Surcharge) (1) The Minister of Information and Communication may impose penalty surcharge of not more than twenty million won in substitution for business suspension measures, and such business suspension measures shall be taken in case that the telecommunications business operator falls under subparagraphs of Article 15 (1) or any of subparagraphs of Article 28 (1) and (2) but such measures may have possibility of bringing about substantial inconvenience to the business users etc., or harming public interests, etc.. <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> (2) The classes of violation for imposition of penalty surcharge pursuant to the provisions of paragraph (1) and the amount of penalty surcharge according to the degree thereof and other necessary matters shall be determined by the Presidential Decree. (3) The Article 37-(2)-3 shall be applied for the penalty according to the above paragraph (1). <Amended by Act No. 5220, Dec. 30, 1996> (4) Deleted. <by Act No. 5385, Aug. 28, 1997>

38 Article 64-2 (Extension of the payment deadline of Penalty Surcharge and Easy-payment) (1) The Minister could extend the payment deadline or allow easy-payment plan for a penalty surcharge levied by the Article 37-(2) and the Article 64 when a telecommunication service provider could not pay the whole penalty surcharge one time due to each of the following reasons and exceeding the amount limits set by the Presidential Decree. The Minister can ask him to provide a security as necessary. 1. In case of severe damage to his property due to natural disaster, fire and etc. 2. In case of business crisis due to the deterioration of business environment. 3. In case of financial difficulty due to the onetime payment of penalty surcharge. (2) The relevant matters for the extension of the payment deadline, easy-payment plan and security will be made by the Presidential Decree. Article 65 (Correction Orders, etc.) (1) The Minister of Information and Communication shall issue correction orders in case that telecommunication business operator falls under any of the following subparagraphs: <Amended by Act No. 4441, Dec. 14, 1991; Act No. 5220, Dec. 30, 1996> 1.In case of violation of this Act, the Framework Act on Telecommunications, the Radio Waves Act, the Act on Expansion of Dissemination and Promotion of Utilization of Information System or the Framework Act on Informatization Promotion or the orders issued under these Acts; 2.In case that the procedures of performing business of telecommunication business operator shall be deemed unduly harmful to the interests of users; and 3.In case that necessary measures like repair, etc., for eliminating obstructions to the supply of telecommunication service caused by accidents, etc., shall not be promptly executed. (2) The Minister of Information and Communication may order telecommunication business operator the matters of the following subparagraphs, when necessary for the development of telecommunication: <Amended by Act No. 5220, Dec. 30, 1996> 1.Integrated operation and management of telecommunication facilities, etc.; 2.Expansion of communication facilities for the enhancement of social welfare;

39 3.Construction and management of communication networks for important communications to achieve efficiency of national function; and 4.Other matters prescribed by the Presidential Decree. Articles 66 and 67 Deleted. <by Act No. 5220, Dec. 30, 1996> Article 68 (Delegation and Entrustment of Authority) (1) The authority of the Minister of Information and Communication under this Act may be delegated partially to the Administrator of Communications Office, pursuant to the Presidential Decree. <Amended by Act No. 5220, Dec. 30, 1996> (2)The Minister of Information and Communication may entrust partial matters on report under Article 21(1) to the telecommunication business operator or to the Korea Information Communication Promotion Association under the Act on Expansion of Dissemination and Promotion of Utilization of Information System, pursuant to the Presidential Decree. <Amended by Act No. 4439, Dec. 14, 1991; Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> CHAPTER 6: PENAL PROVISIONS Article 69 (Penal Provisions) The person falling under any of the following subparagraphs shall be punished by imprisonment for not more than five years or by a fine not exceeding fifty million won: <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> 1.The person who runs the facilities-based telecommunications business without the license under Article 5 (1); 2.The person who destructs telecommunications facilities in violation of Article 50 (1), or obstructs the flow of telecommunications by damaging telecommunications facilities function through attachment of objects and other devices; and 3.The person who divulges other's communication secrecy known to him while in office in violation of Article 54 (2). Article 70 (Penal Provisions) The person falling under any of the following subparagraphs shall be punished by imprisonment for not more than three years or by a fine not exceeding thirty million

40 won: <Amended by Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997> 1.The person who denies provision of the telecommunications service without justifiable reasons, in violation of Article 3 (1); 2.The person who operates a specific telecommunications business without making a registration referred to in Article 19 (1); 3.The person who commits the prohibited acts of any subparagraphs of Article 36-3 (1); 4.The person who fails to comply with an order referred to in Article 37 (2) (including the case in which Article 32-3 applies mutatis mutandis); 5.The person who obstructs the measurement of line tracks, installation and reservation activities of telecommunications facilities under Article 40 (1); and 6.The person who encroaches upon or divulges communication secrecy held by telecommunications business operator, in violation of Article 54 (1). Article 71 (Penal Provisions) The person falling under any of the following subparagraphs shall be punished by imprisonment for not more than two years or by a fine not exceeding twenty million won: <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996> 1. The person who does not obtain permission for change under Article 10 or does not make a report.; 2. The person who does not obtain authorization under the Article 13 (1) or does not obtain approval under the Article 13 (2) or the Article 14 (1). 3.The person who violates provisions of Article 13 (1), or does not obtain approval under Article 14 (1); 4.The person who runs the value-added telecommunications business without reporting to authorities under Article 21; 5.The person who discloses, uses or provides information in violation of the provisions of the text of Article 34-5 (1) and (2) ; 6.Deleted; and <by Act No. 5385, Aug. 28, 1997> 7.The person who does not comply with orders under Article 53 (3) or 55.

41 Article 72 (Penal Provisions) The person falling under any of the following subparagraphs shall be punished by imprisonment for not more than one year or by a fine not exceeding ten million won: <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996; Act no. 5385, Aug. 28, 1997> 1.The person who violates an order under Articles 7 (2) (including the case in which Article 4 (4) or 6 (2) of the Addenda applies mutatis mutandis), 15 (1) and 28 (1) and (2); 2.The person who forces to use telecommunications facilities installed in the premises, in violation of Article 20; 3.The person who fails to make a registration of change or a report of change under Article 22; 4.The person who fails to make a registration or a report under Article 25; and 5.The person who provides telecommunications service without reporting or receiving authorization under Article 29 (1) (including the case in which Article 32-3 applies mutatis mutandis). Article 73 (Penal Provisions) The person falling under any of the following subparagraphs shall be punished by a fine not exceeding ten million won: <Amended by Act No. 5220, Dec. 30, 1996> 1.The person who denies or impedes temporary use of private telecommunication facilities or land under Article 40 (1), without justifiable reasons; 2.The person who denies or impedes entry to the land, etc. under Article 41 (1), without justifiable reasons; 3.The person who denies measures such as moving, alteration, repair and others against obstacles etc., under Article 42 (1), or elimination requests of the plants under Article 42 (2) without justifiable reasons; 4.The person who denies use of transport devices or requests for supply of facilities, etc., under Article 43 (1) without justifiable reasons; 5.The person in violation of the provisions of Article 49;

42 6.The person who does not carry out the performance order of the Minister of Information and Communication pursuant to the provision of Article 35 (3) concerning the supply of telecommunication facilities, interconnection, joint use or supply of information; and 7.The person who does not obtain the approval, approval for change or approval for abolition, or who does not make a report, or report for change, report for abolition pursuant to the provision of Article 59 (2). Article 74 (Penal Provisions) The person who mediates another's communication or provide it for another's use by utilizing the telecommunication service provided by the telecommunication business operator in violation of the supply of the text of Article 32-2 shall be punished by a fine not exceeding five million won. [This Article Wholly Amended by Act No. 5220, Dec. 30, 1996] Article 75 (Penal Provisions) The person who damages the telecommunication facilities or gauges for the telecommunication service in violation of the provision of Article 50 (2) shall be punished by a fine not exceeding one million won. [This Article Wholly Amended by Act No. 5220, Dec. 30, 1996] Article 76 (Attempted Criminal) An attempted criminal under subparagraphs 2 and 3 of Article 69 and subparagraph 6 of Article 70 shall be punished. <Amended by Act No. 5385, Aug. 28, 1997> Article 77 (Joint Penal Provisions) When the representative of a juristic person or the agent, servant or any other employee of the juristic person or individual commits violation under Articles 69 through 74 against the business of such a juristic person or individual, then the fine under the related Article shall be imposed on the juristic person or individual, apart from the punishment of the violator. Article 78 (Fine for Negligence) (1) The person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding ten million won: <Amended by Act No. 4903, Jan. 5, 1995; Act No. 5220, Dec. 30, 1996; Act No. 5385, Aug. 28, 1997>

43 1.The person who fails to make a report referred to in Article 9 (3) or 27; 2.The person who does not comply with change orders of standardized contract for users under Article 30 (including the case in which Article 32-3 applies mutatis mutandis); 3.The person who does not make or put public notices of standardized contract for users in violation of Article 31 (including the case in which Article 32-3 applies mutatis mutandis); 4.The person in violation of protection duty for users under Article 33 (1) and (2) (including the case in which Article 32-3 applies mutatis mutandis); 5.The person who does not make notification of the technical standard and standards for use and supply of telecommunications facilities or fair competition, in violation of the provisions of Article 34-4 (4); 6.The person who does not observe the noticed matters in violation of Article 36 (3); 7.The person who does not arrange the accounting adjustment, submit the operating report, or have the books or documents available in violation of the provisions of Article 36-2 (1); 8.The person who does not comply with the orders concerning the submission of related data pursuant to the provisions of Article 36-2 (3); 9.The person who refuses, avoids or hampers the submission orders or investigation of data or items pursuant to the provisions of Article 36-4 (2); 10.The person in violation of duty of user under Article 57 (1) and (2); 11.The person in violation of duty of repair or restoration of the facilities under Article 58; 12.The person who does not make reports or makes false reports of accidents under Article 61; 13.The person who does not make reports or submit materials under Article 62, or falsely do such things; and 14.The person who does not follow correction orders, etc., under Article 65. (2) The fine for negligence of the above paragraph (1) shall be imposed and collected

44 by the Minister of Information and Communication, pursuant to the Presidential Decree. <Amended by Act No. 5220, Dec. 30, 1996> (3) The person who is dissatisfied with the imposition of the fine for negligence of the above paragraph (2) may make an objection to the Minister of Information and Communication within thirty days from the notification date of such imposition. <Amended by Act No. 5220, Dec. 30, 1996> (4) When the person notified of the imposition of the fine for negligence of the above paragraph (2) makes an objection, pursuant to the above paragraph (3), then the Minister of Information and Communication shall notify a competent court the fact without delay and the court that is notified shall bring the case of the fine for negligence to trial under the Non-Contentious Case Litigation Procedure Act. <Amended by Act No. 5220, Dec. 30, 1996> (5) When the objection and the payment of the fine for negligence is not made within the specified period under paragraph (3), then it shall be collected in accordance with examples of disposition for the national tax in arrears. ADDENDA Article 1 (Enforcement Date) This Act shall enter into force four months after the date of its promulgation. Article 2 (Transitional Measure about Public Telecommunication Business Operator, etc.) (1) At the time when this Act enters into force, the Korea Telecommunication Corporation under the Korea Telecommunication Corporation Act (hereinafter referred to as the "Corporation") shall be deemed to have been designated as the one able to run general telecommunication business under Article 5 (1). (2) Among the persons designated to be able to run public telecommunication business by the Minister of Information and Communication under Article 7 (2) of the former Framework Act on Telecommunications, at the time when this Act enters into force, the one running general telecommunication business under Article 4 (3) 1 shall be deemed to have been designated as the general telecommunication business operator under Article 5, and the one running specific telecommunication business under Article 4 (3) 2 shall be deemed to have the licenses of specific telecommunication business operator under Article 16 (1). (3) At the time when this Act enters into force, the person providing

45 telecommunication service on enforcement information with leased telecommunication line facilities among the persons designated to be able to run public telecommunication business by the Minister of Information and Communication under Article 7 (2) of the former Framework Act on Telecommunications and the registered one registering telecommunication service providing business with the Minister of Information and Communication under Article 73-2 (1), shall be deemed to have registered the value-added telecommunication business under Article 21 (1). (4) The person falling under the supplies of paragraphs (1) through (3) shall report matters prescribed by the Ordinance of the Ministry of Information and Communication, such as classes, contents etc., of telecommunication service provided by oneself, to the Minister of Information and Commu nication within one month after enforcement of this Act. Article 3 (Transitional Measure about Entrusted Business) At the time when this Act enters into force, the entrusted business to others by public telecommunication business operator with approval from the Minister of Information and Communication under former Article 5 shall be deemed to be entrusted by general telecommunication business operator and specific telecommunication business operator with approval from the Minister of Information and Communication, pursuant to Article 12 (including the case applied mutatis mutandis by Article 20). Article 4 (Transitional Measure about Authorization of Standard Form of Contract for Users, etc.) At the time when this Act enters into force, the standard form of contract for users authorized under the former Article 9 (2), shall be considered as the standard form of contract for users authorized by the Minister of Information and Communication under Article 29 (1) until three months after the enforcement of this Act. Article 5 (Transitional Measure about Disposition, etc.) When the approval, license, disposition, orders and applications, etc., under the former supplies at the time when this Act enters into force, apart from the cases under Articles 2 and 3 of Addenda, correspond to the supplies under this Act, then such shall be deemed to be done under this Act. Article 6 (Special Case on Ownership Restriction of Stocks, etc.) (1) Notwithstanding the provisions of Article 6 (1) 4, the Corporation may own stocks issued by other general telecommunication business operator, but already owned by the Corporation at the time when this Act enters into force, within par amount of

46 stocks up to two years after the enforcement of this Act. In this case, the Corporation shall report the plan on disposal of the stocks related, including donation to the State, to the Minister of Information and Communication within six months after enforcement of this Act, and thereupon take measures in conformity with Article 6 (1) 4. (2) At the time when this Act enters into force, notwithstanding the provisions of Article 6 (1) 6, the facilities manufacturer may own the stocks issued by other general telecommunication business operator within par amount of stocks owned by him: Provided, That additional investments shall not be made until the ownership ratio of stocks with voting right falls short of ownership restriction ratio under Article 6 (1) 6. (3) Notwithstanding the provisions of Article 18 (1) 5, the Corporation may own more than 10/100 of the stocks with voting rights, issued by the specific telecommunication business operator which mainly provides telecommunication service based on wireless mode with technical limits, up to two years after enforcement of this Act: Provided, That when two years after enforcement of this Act have passed, then more than 1/3 shall not be owned. (4) Notwithstanding the provisions of Article 18 (1) 5, the Corporation may own more than 10/100 of the stocks with voting rights, issued by specific telecommunication business operator whose main business areas are harbors. Article 7 Deleted. <by Act No. 4903, Jan. 5, 1995> Article 8 (Amendment of Other Acts, etc.) (1) through (8) Omitted. (9) At the time when this Act enters into force, when other Acts cite former provisions of the Public Telecommunication Service Act and provisions corresponding to former ones exist in this Act, then it shall be considered to have cited related provisions of this Act in substitution for former supplies. ADDENDA <Act No. 4439, Dec. 14, 1991> Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation. Articles 2 through 4 Omitted.

47 ADDENDA <Act No. 4441, Dec. 14, 1991> Article 1 (Enforcement Date) This Act shall enter into force on July 1, Articles 2 and 3 Omitted. ADDENDA <Act No. 4861, Jan. 5, 1995> Article 1 (Enforcement Date) This Act shall enter into force four months after the date of its promulgation. Articles 2 through 5 Omitted. ADDENDA <Act No. 4903, Jan. 5, 1995> Article 1 (Enforcement Date) This Act shall enter into force three months after the date of its promulgation. Article 2 (Transitional Measure about License of Facilities-Based Telecommunication Business Operator, etc.) (1) At the time when this Act enters into force, the general telecommunication business operator and specific telecommunication business operator under the former provisions, shall be deemed to have been licensed of the facilities-based telecommunication business operator under amended provision of Article 5. (2) At the time when this Act enters into force, the value-added telecommunication business operator under the former supplies, shall be deemed to have completed the report of the value-added telecommunication business operator under amended provisions of Article 21. Article 3 (Special Case on Ownership Restriction of Stocks, etc.) (1) At the time when this Act enters into force, the stocks issued by other facilities-based telecommunication business operator, but owned by the Corporation under the Korea Telecommunication Corporation Act shall be deemed to have been approved under the amended provisions of proviso of Article 6 (4).

48 (2) The amended provisions of subparagraph 5 of Article 6 shall not be applied mutatis mutandis to the case in which the Corporation owns the stocks of Korea Port Telephone Company. Article 4 (Transitional Measure about Application of Penal supply) The application of penal provisions to the activities existed before enforcement of this Act shall be done under the former provisions. Article 5 (Relationship with Other Acts and Subordinate Statutes) At the time when this Act enters into force, when the general telecommunication business operator or specific telecommunication business operator is cited, by other Acts and subordinate statutes, then it shall be deemed that the facilities-based telecommunication business operators are cited. ADDENDA <Act No. 5220, Dec. 30, 1996> (1) This Act shall enter into force one month after the date of its promulgation. (2) (Transitional Measure concerning Standard Form of Contract for Users) The standard form of contract for users which has been authorized or reported under the previous provisions at the time when this Act enters into force shall be deemed to have been authorized or reported pursuant to the amended provisions of Article 29. ADDENDA <Act No. 5385, Aug. 28, 1997> Article 1 (Enforcement Date) This Act shall enter into force on January 1, Article 2 (Term of Validity) The amended provisions of subparagraph 6 (c) and (d) of Article 6 shall continue to be effective until December 31, Article 3 (Special Cases With Respect to Application of Disqualifications for License of Facilities-Based Telecommunications Business) (1) Notwithstanding the amended provisions of subparagraph 3 of Article 6, a juristic person any major stockholder of which falls under any of subparagraphs 3 (a) through (c) of Article 6(hereinafter referred to as the "foreigner, etc.") shall not obtain a

49 license of a facilities-based telecommunications business until December 31, (2) Notwithstanding the amended provisions of subparagraph 3 of Article 6, a juristic person the stocks of which are held by the foreigner, etc. exceed 33/100 of the total issued stocks shall not obtain a license of a facilities-based telecommunications business until December 31, Article 4 (Special Cases With Respect to Acquisition of Stocks by Corporations) (1) The foreigner, etc. shall not be the largest stockholder of the Korea Telecommunication Authority(hereinafter referred to as the "Corporation") listed in Article 2 (1) 2 of the Act on the Improvement of Managerial Structure of Public Enterprises and Their Privatization and shall not hold exceeding 33/100. (2) Notwithstanding the provisions of Article 1 of the Addenda, the foreigner, etc. may acquire the stocks within the limit of paragraph (1) 1 by a stock deposit certificate overseas on the date of its promulgation. (3)Notwithstanding the amended provisions of subparagraph 6 of Article 6, the State may be the largest stockholder of the Corporation. (4) The provisions of Article 7 shall apply mutatis mutandis to a violation of paragraph (1). Article 5 (Transitional Measures on Appointment of Part-time Directors) Any nationwide telephone business operator shall appoint a majority of directors as part-time member at a general meeting of stockholders convened for the first time after the entry into force of this Act. Article 6 (Special Cases on Application of Disqualifications for Specific Telecommunications Business Operators) (1) No juristic person falling under any of the following subparagraphs shall, notwithstanding the amended provisions of Article 24, be a specific telecommunications business operator who provides any telephone service in connection with telecommunications networks: 1.Juristic person in which foreigners, etc. own any stocks until December 31, 1998; and 2.Juristic person in which stocks owned by foreigners, etc. exceed 49/100 of the total issued stocks until December 31, 2000.

50 (2) The provisions of Article 7 shall apply mutatis mutandis to a violation of paragraph (1). Article 7 (Special Cases on Transboundary Provision of Facilities-Based Telecommunications Services) Any person who intends to provide, as a part of transboundary provision of facilities-based telecommunications services, any telephone service of connecting telecommunications networks, which falls under the business listed in Article 4 (3) 1, shall establish a juristic person which operates a specific telecommunications business within the country not later than December 31, 2000 to provide the relevant. Article 8 Omitted. Source: Accessed in 03/2007