INTERNET MULTIMEDIA BROADCASTING BUSINESS ACT
Act No. 8849, Jan. 17, 2008
Amended by Act No. 8867, Feb. 29, 2008
Act No. 9700, May 21, 2009
Act No. 9785, Jul. 31, 2009
Act No. 9787, Jul. 31, 2009
Act No. 10166, Mar. 22, 2010
Act No. 10165, Mar. 22, 2010
Act No. 10857, Jul. 14, 2011
Act No. 11690, Mar. 23, 2013
Act No. 12725, jun. 3, 2014
Act No. 12874, Dec. 30, 2014
Act No. 13232, Mar. 27, 2015
Act No. 13585, Dec. 22, 2015
Act No. 13708, Jan. 6, 2016
Act No. 14839, Jul. 26, 2017
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to protect the rights and interests of users, develop the relevant technology and industry, protect the public interest in broadcasting and improve national culture, thereby contributing to the development of the national economy and the improvement of public welfare, by ensuring the proper operation of broadcasting business using Internet multimedia in an environment where broadcasting and telecommunications are converged.
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 10166, Mar. 22, 2010; Act No. 12874, Dec. 30, 2014>
| 1. | The term "Internet multimedia broadcasting" means broadcasting which provides various content, including data, pictures, voice, sounds and electronic commerce, including real-time broadcast programs, to users through television receivers, while a two-way Internet protocol ensures consistency in the quality of service, using a broadband integrated services digital network (excluding telecommunications line facilities for services using frequencies allocated to conduct facilities-based service under Article 10 (1) 1 of the Radio Waves Act, regardless of whether the facilities are self-owned or leased); |
| 3. | The term "real-time broadcast programs" means programs organized by Internet multimedia broadcast content providers or broadcasting business entities under subparagraph 3 of Article 2 of the Broadcasting Act, which are concurrently provided or transmitted without change in content and programming; |
| 4. | The term "Internet multimedia broadcasting business" means businesses falling under the following items: |
| (a) | Business providing Internet multimedia broadcast service: Business delivering content to users by Internet multimedia broadcast service providers who have received the content under Article 18 (1) for the purpose of operating Internet multimedia broadcasts; |
| (b) | Business providing content for Internet multimedia broadcast services: Business providing Internet multimedia content to Internet multimedia broadcast service providers; |
| 5. | The term "Internet multimedia broadcasting business entities" means business entities falling under the following items: |
| (a) | Internet multimedia broadcast service providers: Any person who has obtained permission under Article 4 (1) to conduct business providing Internet multimedia broadcast services; |
| (b) | Internet multimedia broadcast content providers: Any person who has made a report or registration, or obtained approval under Article 18 (2) in order to conduct Internet multimedia broadcast content business. |
| Article 3 (Relations with other Acts) |
This Act shall apply in preference to other Acts, with regard to Internet multimedia broadcasting business.
CHAPTER II PERMISSION OF BUSINESS
| Article 4 (Permission for Internet Multimedia Broadcast Service Provider) |
| (1) | Anyone who intends to conduct business providing Internet multimedia broadcast service, shall obtain permission from the Minister of Science and ICT. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Only corporations shall be qualified to obtain permission under paragraph (1). |
| (3) | Anyone who intends to obtain permission under paragraph (1), shall submit a written application for permission, including the following matters, to the Minister of Science and ICT: <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | Name and address of a corporation and the name of a representative; |
| 2. | Business plans, including plans for the supply of and demand for content; |
| 3. | Documents verifying financial and technical capability; |
| 4. | Plans on facilities (including lease plans, in cases of leasing major facilities); |
| 5. | Other matters prescribed by Presidential Decree. |
| (4) | The Minister of Science and ICT shall, when he/she grants permission for business providing Internet multimedia broadcast service, examine the following matters and announce outcomes thereof: <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | Possibility of realizing the public responsibility, impartiality and serving public interests of broadcasting; |
| 2. | Appropriateness of plans for the supply of and demand for content and the level of contribution to the development of the broadcasting and visual industry; |
| 3. | Appropriateness of plans for securing fair competition in a fee-charging broadcasting market; |
| 4. | Appropriateness of management plans, including organizations and human resource operations; |
| 5. | Financial and technical capability; |
| 6. | If the applicant is a corporation in the process of incorporation, whether it is certain that the relevant corporation will be incorporated; |
| 7. | Whether a plan on facilities is appropriate; |
| 8. | Other matters necessary for conducting a business. |
| (5) | Deleted. <by Act No. 8867, Feb. 29, 2008> |
| (6) | The Minister of Science and ICT shall grant permission within three months unless any extraordinary ground for disqualification exists. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (7) | Procedures necessary for permission of business providing Internet multimedia broadcast service under paragraph (1), allocation of scores to each examination criterion and other necessary matters shall be prescribed by Presidential Decree. <Amended by Act No. 8867, Feb. 29, 2008> |
| Article 5 (Term of Validity of Permission) |
The term of validity of permission for business providing Internet multimedia broadcast service under Article 4 (1) shall be prescribed by Presidential Decree within seven years. <Amended by Act No. 12874, Dec. 30, 2014> [This Article Wholly Amended by Act No. 9700, May 21, 2009]
| Article 5-2 (Renewal of Permission) |
| (1) | When Internet multimedia broadcast service providers intend to continue to conduct business providing Internet multimedia broadcast service after the term of validity of permission expires, they shall renew their permit with the Minister of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Science and ICT shall examine matters falling under the subparagraphs of Article 4 (4) and the following matters, and announce results thereof before issuing a renewal of the permit under paragraph (1): <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | Whether the business plan required prior to the issuance of the previous permit has been implemented and whether the conditions for permission and other requirements under the previous permit have been met; |
| 2. | Corrective orders, penalty surcharges, details and frequency of the disposition of an administrative fine by the Korea Communications Commission or the Minister of Science and ICT and whether such dispositions have been observed. |
| (3) | With regard to the renewal of permission under paragraph (1), the provisions of Article 4 (2), (3), (6) and (7) shall apply mutatis mutandis. |
[This Article Newly Inserted by Act No. 9700, May 21, 2009]
| Article 6 (Business Areas) |
| (1) | The whole nation shall be deemed one business area for business providing Internet multimedia broadcast service: Provided, That this shall not apply to cases where a small and medium entrepreneur under Article 2 (1) of the Framework Act on Small and Medium Enterprises makes a request in receiving permission under Article 4 (1), and if deemed necessary by the Minister of Science and ICT. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | When facilities-based service providers under Article 39 (3) 1 and 2 of the Telecommunications Business Act have obtained permission under Article 4 (1), they shall commence services in all broadcast areas publicly announced by the Minister of Science and ICT under Article 12 (2) of the Broadcasting Act within a period prescribed by Presidential Decree from the date on which permission is granted: Provided, That when facilities-based service providers are not able to commence services within such period due to a natural disaster or any other unavoidable grounds, the Minister of Science and ICT may extend such period on just one occasion within a period prescribed by Presidential Decree. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 9700, May 21, 2009; Act No. 10165, Mar. 22, 2010; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 7 (Grounds for Disqualification) |
| (1) | No person falling under any of the following shall conduct business providing Internet multimedia broadcast service under Article 4 (1): |
| 1. | The State or local governments; |
| 2. | A corporation which owns stocks or equities in excess of ownership limits under Articles 8 and 9; |
| 3. | A person for whom three years have not elapsed since permission has been revoked under Article 24 (1). |
| (2) | None of the following persons shall be an executive of a corporation which has obtained permission pursuant to Article 4 (1): <Amended by Act No. 12725, Jun. 3, 2014> |
| 1. | A minor, an incompetent under the adult guardianship, or a quasi-incompetent under the limited guardianship; |
| 2. | Deleted; <by Act No. 13585, Dec. 22, 2015> |
| (3) | None of the following persons shall be the representative of a corporation which has obtained permission pursuant to Article 4 (1): <Amended by Act No. 13581, Dec. 22, 2015> |
| 1. | A foreigner or representative of a foreign corporation or organization; |
| 2. | A person who has been declared bankrupt and has not been reinstated. |
| Article 8 (Prohibition of Concurrent Business) |
| (1) | When Internet multimedia broadcast service providers issue stocks, such stocks shall be in registered form. |
| (2) | No corporation (including specially related parties as prescribed by Presidential Decree) which manages a business of newspaper publishing under the Act on the Promotion of Newspapers, Etc. or a business of news agency under the Act on the Promotion of News Communications may own shares and equities in excess of 49/100 of the total number of shares nor equities of Internet multimedia broadcast service providers. <Amended by Act No. 9785, Jul. 31, 2009> |
| (3) | No company belonging to a corporate group that meets the criteria, including gross amount of assets, prescribed by Presidential Decree, and its affiliated company (including specially related parties prescribed by Presidential Decree), from among corporate groups under subparagraph 2 of Article 2 of the Monopoly Regulation and Fair Trade Act, nor any corporation (including specially related parties prescribed by Presidential Decree) managing a business of newspaper publishing under the Act on the Promotion of Newspapers, Etc. or a business of news agency under the Act on the Promotion of News Communications may own shares nor equities in excess of 49/100 of the total number of shares and equities of Internet multimedia broadcast content providers engaged in general programming or specialized programming of news reporting. <Amended by Act No. 9785, Jul. 31, 2009; Act No. 9787, Jul. 31, 2009> |
| (4) | No Internet multimedia broadcast service provider shall operate a program providing business (referring to concurrent business or ownership of not less than 5/100 of the total number of stocks or equities) in excess of 1/5 of the respective number of business entities involved in a television program providing business, radio program providing business or data program providing business under Article 2 of the Broadcasting Act and Article 1-2 of the Enforcement Decree of the same Act. |
| Article 9 (Restrictions on Stock Ownership by Foreigners) |
| (1) | None of the following persons shall own stocks (limited to voting stocks or equivalents thereof, such as depository receipts, and investment shares; hereinafter the same shall apply) or equities of an Internet multimedia broadcast service provider in excess of 49/100 of the total number of issued stocks or equities, when aggregated with those held by any of the following third persons: <Amended by Act No. 12874, Dec. 30, 2014> |
| 1. | A foreign government or organization; |
| 3. | A corporation, the largest shareholder of which is a foreign government, organization, or foreigner (including a specially related person under Article 9 (1) 1 of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply in this subparagraph and paragraph (2) 3) holding at least 15/100 of the total number of issued stocks (excluding a corporation holding less than 1/100 of the total number of issued stocks or equities of the relevant Internet multimedia broadcast service provider). |
| (2) | None of the following persons shall own stocks or equities of an Internet multimedia broadcast content provider (excluding the Internet multimedia broadcast content provider who provides general programming or specialized programming concerning news reporting) in excess of 49/100 of the total number of stocks or equities, when aggregated with those held by any of the following third persons: Provided, That in cases of an Internet multimedia broadcast content provider (excluding the Internet multimedia broadcast content provider who provides general programming, specialized programming concerning news reporting, or specialized programming concerning the introduction and sale of goods), no corporation whose stocks or equities are owned by the Government, an organization, or foreigner of a foreign country with which the Republic of Korea concluded a free trade agreement prescribed and announced by the Minister of Science and ICT among bilateral or multilateral free trade agreements which the Republic of Korea concluded with foreign countries and have entered into effect shall be construed as a person falling under the same subparagraph even though the corporation meets requirements under subparagraph 3: <Newly Inserted by Act No. 12874, Dec. 30, 2014; Act No. 14839, Jul. 26, 2017> |
| 1. | A foreign government or organization; |
| 3. | A corporation whose the sum of stocks and equities owned by a foreign government, organization, or foreigner exceeds 50/100 of the total number of stocks or equities of the relevant corporation (including cases where the foreign government, organization or foreigner is the largest investor). |
| (3) | No person who falls under any of the subparagraphs of paragraph (2) shall own stocks or equities in excess of 20/100 of the total number of stocks or equities of an Internet multimedia broadcast content provider who provides general programming or specialized programming concerning news reporting. <Amended by Act No. 9787, Jul. 31, 2009; Act No. 12874, Dec. 30, 2014> |
| Article 10 (Restrictions, etc. on Shareholders Holding Excessive Stocks or Equities) |
| (1) | In the case of a violation of Article 8 or 9, the owner of the shares or equities that give rise to the violation may not exercise the voting rights attached to his/her shareholding or the shares he/she holds in excess of the threshold. |
| (2) | The Minister of Science and ICT may order a person who has violated Article 8 or 9 or the owner of the shares or equities that give rise to the violation to take corrective measures, specifying a period of up to six months for correction of the violation. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Anyone who has been given a corrective order under paragraph (2) shall correct the relevant matters within the period. |
| Article 11 (Permission to Make Changes) |
| (1) | Where any person who has obtained permission to operate Internet multimedia broadcast services pursuant to Article 4 (1) intends to change matters falling under any of the following among matters permitted, he/she shall obtain permission therefor: <Amended by Act No. 12725, Jun. 3, 2014> |
| 1. | Merger and division of an Internet multimedia broadcast service provider; |
| 2. | Transfer of all or part of such Internet multimedia broadcast services. In such cases, a transferee of such services shall obtain permission to operate Internet multimedia broadcast services under Article 4; |
| 3. | Change in the area where services are provided. |
| (2) | Article 4 shall apply mutatis mutandis to procedures for permission to make changes, details of examination, etc. |
| (3) | Where any person who has obtained permission to operate Internet multimedia broadcast services pursuant to Article 4 (1) changes any of the following, he/she shall immediately report such change to the Minister of Science and ICT: <Newly Inserted by Act No. 12725, Jun. 3, 2014; Act No. 14839, Jul. 26, 2017> |
| 2. | Person responsible for broadcast programming; |
| 3. | Name of the corporation and the trade name; |
| 4. | Seat of the main office. |
CHAPTER III GUARANTEE AND PROMOTION OF FAIR COMPETITION
| Article 12 (Encouragement of Fair Competition) |
| (1) | The Government shall endeavor to build an efficient competition system, create an environment of fair competition for the Internet multimedia broadcasting business, and prevent control over other businesses from extending to the Internet multimedia broadcasting business through an unfair means. |
| (2) | The Government shall assess the competitive conditions in the Internet multimedia broadcasting businesses in an effort to formulate competition policies for building an efficient competition system and creating a fair competitive environment under paragraph (1). <Amended by Act No. 10857, Jul. 14, 2011> |
| (3) | The Broadcasting Market Competition Evaluation Committee under Article 35-5 (1) of the Broadcasting Act shall take charge of assessing the competitive conditions under paragraph (2). <Amended by Act No. 10857, Jul. 14, 2011> |
| (4) | Detailed methods, etc. to prevent control over other businesses from extending to the Internet multimedia broadcasting business through an unfair means shall be prescribed by Presidential Decree. <Amended by Act No. 10857, Jul. 14, 2011> |
| (5) | Deleted. <by Act No. 10857, Jul. 14, 2011> |
| Article 13 (Restrictions, etc. on Market Shares) |
| (1) | The combined number of subscribers of an Internet multimedia broadcast service provider and its related parties in any of the following broadcast services shall not exceed 1/3 of the total number of subscribers to paid broadcast services, including Internet multimedia broadcasting, CATV broadcasting and satellite broadcasting: <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 13232, Mar. 27, 2015> |
| 1. | Internet multimedia broadcast service providers; |
| (2) | When an Internet multimedia broadcast service provider has violated paragraph (1), the Minister of Science and ICT may order the relevant broadcast service provider to correct the relevant matters within a fixed period not exceeding six months. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The Internet multimedia broadcast service provider who has been issued corrective orders under paragraph (2) shall correct the relevant matters within the period. |
| (4) | The Minister of Science and ICT may designate regions such as islands or mountainous areas, where only satellite broadcast signals can be received, as exclusion regions that are excluded from the calculation of the total number of subscribers referred to in paragraph (1). <Newly Inserted by Act No. 13232, Mar. 27, 2015; Act No. 14839, Jul. 26, 2017> |
| (5) | The calculation and verification of the total number of subscribers referred to in paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 13232, Mar. 27, 2015> |
| Article 14 (Equal Provision of Telecommunications Facilities) |
| (1) | When any person who intends to conduct business providing Internet multimedia broadcast service requests access to and use of telecommunications facilities necessary for providing the relevant services, no Internet multimedia broadcast service provider may refuse such request without any reasonable and justifiable ground, such as a lack of self-owned facilities or protection of confidential information. |
| (2) | No Internet multimedia broadcast service provider shall suspend or restrict the use of self-owned facilities by other Internet multimedia broadcast service providers without any reasonable and justifiable ground. |
| (3) | No Internet multimedia broadcast service provider shall provide self-owned facilities to other Internet multimedia broadcast service providers with unfairly discriminatory prices and conditions. |
| (4) | Matters necessary for the scope of telecommunications facilities, the grounds for refusing, suspending or restricting provision of facilities, the methods and procedures for providing facilities and the principles for calculating prices for using such facilities under paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
| Article 14-2 (Public Notice on Technical Standards) |
The Minister of Science and ICT shall establish and publicly announce technical standards for installation and maintenance of broadcast facilities of Internet multimedia broadcast service providers and for transmission and line facilities, etc. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 12725, Jun. 3, 2014]
| Article 15 (Reporting, etc. on Terms of Use) |
| (1) | Internet multimedia broadcast service providers shall determine fees and conditions (hereinafter referred to as "terms of use") for using services which they intend to provide, and report such terms of use (including reports of changes) to the Minister of Science and ICT, and obtain approval for service fees (including approval for revised matters) from the Minister of Science and ICT. Provided, That providers of services enabling users to choose real-time broadcast programs or content, which are publicly announced by the Minister of Science and ICT, shall report fees for using such services (including reports on changes) to the Minister of Science and ICT. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 13708, Jan. 6, 2016; Act No. 14839, Jul. 26, 2017> |
| (2) | Anyone who intends to obtain approval (including approval for revised matters) for service fees under paragraph (1) shall submit to the Minister of Science and ICT documents supporting the calculation of the service fees including subscription fees, basic fees, fees for use, fees for added services and actual expenses (including comparative tables of the previous and present content, in cases of revising fees). <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 16 (User Protection) |
| (1) | Internet multimedia broadcast service providers shall handle reasonable opinions or complaints from users about their services without delay. |
| (2) | Internet multimedia broadcasting service providers shall take measures to protect information on individual users they have acquired in the course of providing services or telecommunications facilities, and shall not disclose such personal information: Provided, That this shall not apply to a disclosure made with the consent of the principal of the information or through legal process of other Acts. |
| (3) | Internet multimedia broadcast service providers shall pay reasonable damages to their users for any loss sustained by reason of unfair disclosure of individual user information under paragraph (2). |
| Article 17 (Prohibited Acts) |
| (1) | No Internet multimedia broadcast service providers shall commit any of the following acts, which undermine or are likely to undermine the fair competition of service providers or the interests of users, or cause a third party to commit such acts: |
| 1. | Refusing to provide Internet multimedia broadcast services without any justifiable ground; |
| 2. | Providing Internet multimedia broadcast services without observing terms of use, or charging service fees without following contracts; |
| 3. | Unfairly using information on users acquired in the course of providing Internet multimedia broadcast services; |
| 4. | Providing Internet multimedia broadcast services at remarkably favorable or unfavorable fees or conditions, by unfairly discriminating between users; |
| 5. | Forcing Internet multimedia broadcast content providers to conclude an unfair contract, or refusing to appropriately distribute profits by exploiting their dominant position; |
| 6. | Unfairly obstructing viewing programs of other broadcasting business entities or obstructing conclusion of any service provision contract; |
| 7. | Refusing, suspending or restricting the use of or access to telecommunications facilities necessary for providing services of other broadcasting business entities, such as electric poles, ducts and cable tunnels, without any justifiable ground. |
| (2) | When Internet multimedia broadcast service providers commit any act falling under any subparagraph of paragraph (1), the Korea Communications Commission may, in consultation with the Fair Trade Commission, impose penalty surcharges prescribed by Presidential Decree, not exceeding 2/100 of the amount of sales, on the relevant Internet multimedia broadcast service providers, in consideration of the details, degrees, periods or frequencies of violations and the size of profits generated from such violations: Provided, That the Korea Communications Commission may impose penalty surcharges not exceeding 500 million won in cases prescribed by Presidential Decree, where sales are non-existent or indeterminate. <Amended by Act No. 8867, Feb. 29, 2008> |
| (3) | When any person on which a penalty surcharge is imposed under paragraph (2) fails to pay the penalty surcharge within the deadline for payment, the Korea Communications Commission shall collect the penalty surcharge in the same manner as delinquent national taxes are collected. <Amended by Act No. 8867, Feb. 29, 2008> |
| (4) | Matters necessary for detailed types and standards of acts falling under each subparagraph of paragraph (1) shall be prescribed by Presidential Decree. |
CHAPTER IV INTERNET MULTIMEDIA BROADCAST CONTENT
| Article 18 (Provision of Content) |
| (1) | Any broadcasting business entity under subparagraph 3 of Article 2 of the Broadcasting Act, value-added service providers under Article 22 of the Telecommunications Business Act and business entities who produce or provide content pursuant to other Acts may provide content for Internet multimedia broadcast to Internet multimedia broadcast service providers. <Amended by Act No. 10165, Mar. 22, 2010; Act No. 12725, Jun. 3, 2014> |
| (2) | Any person who intends to provide content under paragraph (1) shall report to or register with the Minister of Science and ICT: Provided, That any one who intends to provide content focused on news reporting or content of general programing that covers various areas such as news reporting, culture and entertainment to Internet multimedia broadcast service providers shall obtain approval from the Korea Communications Commission, and any one who intends to provide content focused on commodity presentation and sales to Internet multimedia broadcast service providers shall obtain approval from the Minister of Science and ICT. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Any of the following persons shall be deemed to have filed such report, made such registration or received such approval as prescribed in paragraph (2): <Newly Inserted by Act No. 12725, Jun. 3, 2014> |
| 1. | Broadcasting business entities under subparagraph 3 of Article 2 of the Broadcasting Act (in cases of cable television system operators and satellite television broadcasting service providers, limited to content provided via channels directly operated by them); |
| (4) | Detailed procedures and methods necessary for reporting, registration and approval under paragraph (2) shall be prescribed by Presidential Decree. <Amended by Act No. 12725, Jun. 3, 2014> |
| Article 18-2 (Requirements for Registration) |
Article 9-2 of the Broadcasting Act shall apply mutatis mutandis to requirements for registration of a person who intends to be registered as an Internet multimedia broadcast content provider pursuant to the main body of Article 18 (2). In such cases, "business of using broadcasting channel" shall be construed as "Internet multimedia broadcast content services". [This Article Newly Inserted by Act No. 12725, Jun. 3, 2014]
| Article 19 (Policies for Development of Content Business) |
Except as otherwise provided for in other Acts, the Government shall separately formulate and implement policies for development of content businesses, including fair competition for content provided to Internet multimedia broadcast service providers and securing financial resources necessary for promoting the relevant industry.
| Article 20 (Equal Access to Content) |
| (1) | When the Minister of Science and ICT has publicly notified broadcast programs (hereinafter referred to as "major broadcast programs") provided by Internet multimedia broadcast content providers who have made reports or registration, or obtained approval under Article 18 (2), in accordance with standards prescribed by Presidential Decree, the major broadcast programs shall be provided to other Internet multimedia broadcast service providers at fair and reasonable prices without discrimination, to ensure that the general public may view such broadcast programs, and the interests of viewers and a fair trade order shall not be undermined in concluding a contract for major broadcast programs. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Science and ICT shall, when it publicly notifies major broadcast programs under paragraph (1), listen to the opinions of the Minister of Culture, Sports and Tourism, the Korea Communications Commission, broadcasting business entities and viewers. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The Minister of Science and ICT may order Internet multimedia broadcast content providers who have violated paragraph (1) to take necessary corrective measures, such as suspension of prohibited acts. In such cases, the Minister of Science and ICT shall offer the relevant party an opportunity to state opinions within a fixed period, before imposing an order to take corrective measures: Provided, That this shall not apply when the relevant party fails to comply with such order without any justifiable ground. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 21 (Composition and Operation of Broadcast Programs) |
| (1) | No Internet multimedia broadcast service provider may operate broadcast channels directly. |
| (3) | Article 70 (1) through (3) and (8) of the Broadcasting Act shall apply mutatis mutandis to real-time broadcast programs provided by Internet multimedia broadcast service providers. In such cases, "CATV broadcasting business entities" shall be construed as "Internet multimedia broadcast service providers" and "channels" construed as "the unit of real-time broadcast programs provided by Internet multimedia broadcast service providers", respectively. <Amended by Act No. 12874, Dec. 30, 2014> |
| (4) | Articles 69, 71 through 74, 76, 76-3, 76-5, 78 (1) through (4), 78-2, and 83 of the Broadcasting Act shall apply mutatis mutandis to broadcast programming of content providers, domestic broadcast programming, broadcast programming by outsourcing production, commercials, announcement of sponsorship, supply of broadcast programs and measures to guarantee universal viewing and listening rights, recommendation for orderly programming of relay broadcasting, re-transmission, and the recording and preservation of broadcast content. In such cases, "broadcasting business entities" shall be construed as "Internet multimedia broadcast service providers, or Internet multimedia broadcast content providers." <Amended by Act No. 12874, Dec. 30, 2014> |
| (5) | The outcome of the implementation of broadcasting under Article 83 of the Broadcasting Act which is applied mutatis mutandis pursuant to the former part of paragraph (4) shall be submitted to the Minister of Science and ICT. <Newly Inserted by Act No. 12874, Dec. 30, 2014; Act No. 14839, Jul. 26, 2017> |
CHAPTER V SUPPLEMENTARY PROVISIONS
| Article 22 (Suspension or Closure of Business) |
| (1) | When Internet multimedia broadcast service providers intend to suspend or close down all or part of their businesses, they shall notify the relevant service users of such facts and report to the Minister of Science and ICT 30 days before the date on which their businesses are expected to be suspended or closed down. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | When Internet multimedia broadcast content providers intend to suspend or close down all or part of their businesses, they shall report such facts to the Minister of Science and ICT or the Korea Communications Commission. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 23 Deleted. <by Act No. 10165, Mar. 22, 2010> |
| Article 24 (Revocation of Permission and Suspension of Business) |
| (1) | When Internet multimedia broadcast service providers fall under any of the following subparagraphs, the Minister of Science and ICT may revoke permission for the relevant business under this Act or may order a suspension of business for up to one year: Provided, That when Internet multimedia broadcast service providers fall under subparagraph 1, the Korea Communications Commission shall revoke such permission: <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | When they have obtained permission under Article 4 (1) by fraud or other wrongful means; |
| 2. | When they fail to commence business within one year after the date on which they obtained permission under Article 4 (1) or they have continued to suspend business for one year or longer; |
| 3. | When they fail to comply with orders under Articles 10 (2) and 13 (2). |
| (2) | Standards and procedures for dispositions under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
The Minister of Science and ICT shall, when it intends to revoke permission for Internet multimedia broadcasting business under Article 24 (1), hold a hearing thereon. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> [This Article Newly Inserted by Act No. 9700, May 21, 2009]
| Article 25 (Penalty Surcharges) |
| (1) | When revocation of permission or suspension of business of Internet multimedia broadcast service providers falling under any of the subparagraphs of Article 24 (1) is likely to cause severe inconvenience to users of the relevant business or undermine the public interests, the Minister of Science and ICT may impose penalty surcharges on the relevant Internet multimedia broadcast service providers, in consideration of the grounds for suspension of business or revocation of permission and the size of profits generated from violations, in an amount not exceeding 3/100 of the amount of sales of Internet multimedia broadcasting business, in lieu of suspension of business or revocation of permission. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | When any person on whom a penalty surcharge is imposed under paragraph (1) fails to pay the penalty surcharge within the deadline for payment, the Minister of Science and ICT shall collect the penalty surcharge in the same manner as delinquent national taxes are collected. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Categories of violations and amounts of penalty surcharges under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 26 (Corrective Order, etc.) |
| (1) | When any Internet multimedia broadcast service provider falls under any of the following, the Minister of Science and ICT or the Korea Communications Commission shall order a correction within his/her/its respective jurisdiction. Provided, That the foregoing shall not apply to cases where Article 17 (1) is violated: <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 12874, Dec. 30, 2014; Act No. 14839, Jul. 26, 2017> |
| 1. | When procedures for handling tasks are deemed to significantly undermine the interests of users; |
| 2. | When necessary measures are not taken immediately after an accident or the like interferes with the provision of Internet multimedia broadcast services; |
| 3. | When they violate this Act or orders under this Act. |
| (2) | The Minister of Science and ICT may order persons who have conducted business providing Internet multimedia broadcast service without obtaining approval under Article 4 (1) to suspend the provision of the relevant services. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The Minister of Science and ICT or the Korea Communications Commission may order persons, who are engaged in business providing content for Internet multimedia broadcast services without making reports or registration or without obtaining approval under Article 18 (2), to suspend the provision of the relevant services, within his/her/its respective jurisdiction. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (4) | The Korea Communications Commission may order the relevant business entities who have committed acts violating Article 17 (1) to take corrective measures, such as suspension of violations, changes to the terms of use and deletion of contract provisions. <Amended by Act No. 8867, Feb. 29, 2008> |
| Article 26-2 (Delegation of Authority) |
The Minister of Science and ICT may delegate part of his/her authority conferred under this Act to the head of an agency under his/her jurisdiction, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 12725, Jun. 3, 2014]
CHAPTER VI PENALTY PROVISIONS
| Article 27 (Penalty Provisions) |
| (1) | A person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 30 million won: |
| 1. | A person who conducts business providing Internet multimedia broadcast service without obtaining permission (including permission for revised matters) under Article 4 (1); |
| 2. | A person who refuses requests for access to and use of necessary telecommunications facilities without any reasonable and justifiable ground, in violation of Article 14 (1); |
| 3. | A person who suspends or restricts the use of self-owned facilities by other Internet multimedia broadcast service providers without any reasonable and justifiable ground, in violation of Article 14 (2); |
| 4. | A person who provides self-owned facilities to other Internet multimedia broadcast service providers at unfairly discriminatory prices and conditions, in violation of Article 14 (3); |
| 5. | A person who discloses information, in violation of Article 16 (2); |
| 6. | A person who violates an order to suspend business under Article 24 (1). |
| (2) | If the representative of a corporation, or any agent, employee of, or other person employed by the corporation or an individual commits an offense under paragraph (1) 2 through 4 in connection with the duties of the corporation or the individual, not only shall such offender be punished accordingly, but the aforementioned corporation or private individual shall also be punished by fines under the relevant subparagraph: Provided, That the same shall not apply where the corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offence. |
| Article 28 (Administrative Fines) |
| (1) | A person who falls under any of the following subparagraphs shall be punished by an administrative fine not exceeding 10 million won: |
| 1. | A person who fails to submit data under Article 12 (4); |
| 2. | A person who conducts business providing Internet multimedia broadcast service without reporting terms of use or obtaining approval for service fees under Article 15 (1); |
| 3. | A person who fails to submit data under Article 15 (2); |
| 4. | A person who fails to take measures for protecting information on users under Article 16 (2); |
| 5. | A person who fails to make a report under Article 22; |
| 6. | A person who fails to comply with a corrective order under Article 26. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Science and ICT or Korea Communications Commission (hereinafter referred to as "imposing authority") in accordance with its jurisdiction, as prescribed by Presidential Decree. <Amended by Act No. 8867, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | through (5) Deleted. <by Act No. 13585, Dec. 22, 2015> |
ADDENDA
| (1) | (Enforcement Date)This Act shall enter into force three months after the date of its promulgation. |
| (2) | and (3) Omitted. <by Act No. 8867, Feb. 29, 2008> |
| (4) | (Transitional Measures Concerning Restrictions on Ownership) In cases where a corporation under Article 8 (3) owns stocks or equities of a corporation which conducts a broadcast channel business engaged in specialized programming of news reporting under the Broadcasting Act at the time this Act enters into force, if the relevant broadcast channel business entity intends to conduct business providing content for Internet multimedia broadcast services engaged in specialized programming of news reporting, the corporation may continue to own stocks or equities within its limits of stocks or equities, notwithstanding the provisions of Article 8 (3). |
| (5) | Omitted. <by Act No. 8867, Feb. 29, 2008> |
ADDENDA <Act No. 8867, Feb. 29, 2008>
Article 1 (Enforcement Date, etc.)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDUM <Act No. 9700, May 21, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 9785, Jul. 31, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDUM <Act No. 9787, Jul. 31, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10165, Mar. 22, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 10166, Mar. 22, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDUM <Act No. 10857, Jul. 14, 2011>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12725, Jun. 3, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Internet Multimedia Broadcast Content Providers)
The amended provision of Article 18 (3) shall apply beginning with broadcasting business entities and value-added service providers who intend to provide content for Internet multimedia broadcast pursuant to the amended provision of paragraph (1) of the aforesaid Article after this Act enters into force. Article 3 (Transitional Measures concerning Grounds for Disqualification of Incompetents)
Notwithstanding the amended provision of Article 7 (2) 1, the previous provision thereof shall apply to a person who was already declared incompetent or quasi-incompetent at the time the aforesaid amended provision enters into force and in whose case the effect of the declaration of incompetent or quasi-incompetent is maintained pursuant to Article 2 of Addenda of the Civil Act partly amended by Act No. 10429.
ADDENDUM <Act No. 12874, Dec. 30, 2014>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 9 (1) through (3) shall enter into force on March 15, 2015.
ADDENDA <Act No. 13232, Mar. 27, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Effective Period)
Subparagraphs 2 and 3 of Article 13 (1) shall be effective for three years from the enforcement date of this Act.
ADDENDUM <Act No. 13585, Dec. 22, 2015>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 13708, Jan. 6, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the Acts that were already promulgated before this Act enters into force but have yet to enter into force, among the Acts amended pursuant to Article 5 of the Addenda, shall enter into force on the date the respective Act enters into force.
Articles 2 through 6 Omitted.